Click on the links below for Federal Interest Rates and State Interest Rates and details.
Please see Adding and Editing Interest Rates for detailed steps required to update interest rates in Intuit ProConnect Lacerte.
Federal Interest Rates: Click on the Federal link below for details or copy and paste the following URL into your web browser: http://accountants.intuit.com/tax/articles/federal-irs-underpayment-interest-rates/
State Interest Rates- Click on the States below for details
Note- State information varies (per month, per year, per quarter) and not all information is posted the same (form instructions, FAQs, table, notices...).
Individual- Per the AL 40 Instructions,
"Alabama law provides that the same rate of interest shall be collected as currently prescribed by the Internal Revenue Service."
Corporate- Per the AL 20C Instructions,
"Taxes not paid on or before the due date will be subject to a failure to timely pay penalty of 1% per month, up to 25%, and will accrue interest at the rate provided in �40-1-44."
See Interest Rates by Calendar Quarter (As established by 26 ISCA 6621, According to Section 40-1-44, Code of Alabama 1975) for more information.
Per the AZ Interest Rates,
|Interest Thru||Quarterly Rate|
|1/1/2017 - 3/31/2018||4%|
|4/1/2018 - 9/30/2018||5%|
Individual- Per the AR Income Tax Instructions,
"Interest of ten percent (10%) per year will also be assessed on any additional tax due, calculated from the original due date to the date you paid the tax due on an original or amended return."
Corporate- Per the AR Corporate Tax Instructions,
"Interest will be computed using a daily rate of .00027397 from the 15th day of the 4th month after the close of the tax year until the date the tax is paid."
Per the CA Interest Rates,
- The current rate on personal income tax underpayments and overpayments, corporation underpayments, and estimate penalties is 4%.
- The current rate on corporation overpayments is 0%.
|Interest Thru||Quarterly Rate|
|07/01/2012 - 12/31/2016||3%|
|01/01/2017 - 12/31/2018||4%|
|1/1/2019 - 6/30/2019||5%|
Previous CA Interest Rates
Individual- Per the CO Income Tax Instructions,
"Line 33-Calculate any interest owed for delinquent filing or payment. The interest rate is 4% of the net tax due. Or, if you prefer not to calculate this interest, the Department will bill you. Interest on any bill issued that remains unpaid after 30 days of issuance will increase to 7%."
Corporate- Per the CO Corporate Tax Instructions,
"Line 33-Calculate any penalty owed for delinquent filing or payment. The penalty is 5% of the net tax due for the first month after the due date, and 0.5% for each additional month past the due date. The minimum penalty is $5 and the maximum penalty is 12% of net tax due. Or, if you prefer not to calculate this penalty, the Department will bill you."
Individual- Per the CT-1040 Instructions,
"Interest is charged at the rate of 1% per month from the due date of the tax return."
Corporate- Per the CT-1120 Instructions,
"Interest on any tax not paid by the original due date is computed at 1% per month or fraction of a month until the tax is paid in full."
Partnership and S Corporate- Per the CT1065/CT-1120SI Instructions,
"If the PE does not pay the tax when due, it will owe interest at the rate of 1% per month or fraction of a month until the tax is paid in full."
Individual- Per the Delaware FAQ for Penalties and Interest,
"The Delaware Code imposes interest on any underpayment or late payment of income taxes due at the rate of 1/2% per month, or fraction of a month, on any tax due, from the due date of the return to the date paid."
Corporate- Per the Delaware Corporate Instructions,
"..... interest, an additional penalty of 1% per month (not to exceed 25%) is imposed for failure to pay (in whole or in part) the tax liability shown to be due on a timely filed return."
"Interest of 10% per year, compounded daily, on a late payment."
Also see OTR Interest Calculator to figure the interest on your unpaid DC Tax
Per the Florida DOR,
"If your tax return and/or payment are late, you owe interest on the amount due. A floating rate of interest applies to late filed returns, payments, and underpayments of taxes, fees, and surcharges. Florida's interest rate is updated twice a year, on January 1 and July 1. Current and past year's interest rates are published in Tax Information Publications (TIPs).
- The floating rate of interest remains at 8% for July 1, 2018 through December 31, 2018. Read more in TIP #18ADM-02
- The floating rate of interest remains at 8% for January 1, 2018 through June 30, 3018. Read more in TIP #17ADM-02.
Both Individual and Corporate Penalty and Interest Rates
"Interest on past due taxes accrues monthly from the date the tax is due until the date the tax is paid.
- Interest accruing for months prior to July 1, 2016 accrues at the rate of 12 percent annually (1 percent per month).
- Interest that accrues beginning July 1, 2016 accrues at an annual rate equal to the Federal Reserve prime rate plus 3 percent.
- The interest rate will be reviewed and may be adjusted in January of each subsequent calendar year.
Please note: The information above does not apply to interest on past due taxes subject to the International Fuel Tax Agreement ('IFTA") which contains its own requirements. [O.C.G.A. § 48-2-40]"
"Interest at the rate of 2/3 of 1% per month or part of a month shall be assessed on unpaid taxes and penalties beginning with the first calendar day after the date prescribed for payment, whether or not that first calendar day falls on a Saturday, Sunday, or legal holiday."
Individual- Per the Idaho Interest Rates,
"Interest applies on delinquent tax from the original due date of the return until the tax is paid at the rate of 4% per year (rate effective for 2018)."
Per the IL Interest Rates,
|Date||Underpayment Yearly Rate|
|07/01/2018 - 12/31/2018||5%|
|07/01/2016 - 06/30/2018||4%|
Per the IN DOR Departmental Notice #3,
|Year||Delinquent Yearly Payments|
Per the IA History of Interest Rates,
Per the KS Penalty and Interest,
|01/01/2017 - 12/31/2018||5%|
|01/01/2013 - 12/31/2016||4%|
|01/01/2010 - 12/31/2012||5%|
Per the KY Penalties Interest and Fees,
Per the Louisiana Interest Rate Schedule
|Date||Monthly Interest Rate|
|01/01/2018 - 12/31/2018||.6666%|
|01/01/2017 - 12/31/2017||.6042%|
Individual- Per the ME Interest Rates,
|01/01/2018 - 12/31/2018||.5000%|
|01/01/2017 - 12/31/2017||.5833%|
Corporate- Per the ME Corporate Income Tax Instructions,
"Interest: For calendar year 2018, the interest rate is 6%, compounded monthly."
Partnership- Per the ME Form 941P-ME Instructions,
"Beginning January 1, 2018, the interest rate is 6% per annum, compounded monthly. The penalty for failure to pay the withholding tax on time is 1% per month up to a maximum of 25%"
"Interest is due at a rate of 11.5% annually or 0.9583% per month for any month or part of a month that a tax is paid after the original due date of the 2017 return but before January 1, 2019."
"The annual rate of interest charged for taxes owed to the State is 12% from 01/01/17 through 12/31/17. The annual interest rate changes after 12/31/17."
"Interest is due at the rate of 11.5% annually or 0.9583% per month for any month or part of a month that a tax is paid after the original due date of the 2017 return but before January 1, 2019."
Also see the Maryland Income Tax Interest Calculator to figure the interest on your unpaid Maryland Tax.
|2018||Q1 5% - Q2 6%|
|2016||Q1 4%, Q2 5%, Q3 5%|
|01/01/2018 - 6/30/2018||5.15%|
|07/01/2017 - 12/31/2017||4.7%|
Per the MN Interest Rates,
|2017 - Current||4%|
|2010 - 2016||3%|
Per the MS Penalty and Interest FAQ,
"If the outstanding tax liability is not paid by the original due date of the return, then interest is due at a rate of 7/10% per month...."
Per the MO Interest Rates - Delinquencies,
Note- Scroll down the page to the Delinquencies table.
Individual- Per the MT Late Fees, Penalties and Interest,
"If you have not paid 100% of your income tax liability by April 15, 2016, you will have to pay 8% per year accrued daily on your unpaid balance. To calculate your interest, multiply the unpaid balance by .0002192 (.02192%) times the number of days after April 15, 2016, your payment is received."
Corporate- Per the CIT-4 Instructions,
"Interest of 12% per year, calculated daily, accrues on any tax liability that has not been paid by the original due date of the tax return."
|01/01/2013 to present||3%|
|01/01/2009 - 12/31/2012||5%|
|Period||Interest for Underpayment of Tax|
|01/01/2017 - 12/31/2018||6%|
|1/1/2013 - 12/31/2016||5%|
"Interest- 3% above the prime rate for every month or part of a month the tax is unpaid, compounded annually"
Per the NM Penalty & Interest Rates,
|4/1/2018 - 9/30/2018||5%|
|4/1/2016 - 3/31/2018||4%|
Per the NY Current Interest Rates,
|10/1/2018 - 12/31/2018||7.5%|
Per the NC Interest Rates,
|7/1/2008 - 12/31/2018||5%|
|1/1/2008 - 6/30/2008||7%|
"Extension Interest: Interest on any tax due on the return will be charged at the rate of 12% per year from the original due date of your return to the earlier of the date you file your return or the extended due date."
"Penalty and Interest: In addition to any penalty, interest must be paid at the rate of 1% per month (or fraction of a month)..."
Per the OH Annual Certified Interest Rates,
|Calendar Year||Monthly Accrual|
Per the OK Income Tax: Penalty and Interest,
"The unpaid tax becomes delinquent and interest is charged at the rate of 1.25% per month..."
"The 2018 rate is 5 percent per year. If the tax isn’t paid within 60 days of the date of our billing notice, the interest rate increases to 9 percent per year."
|For periods beginning||Annually|
Per the PA FAQ,
"The 2018 annual interest rate for purposes of calculating interest due on underpayments will be 4 percent (.000110 daily) as determined by the U. S. Secretary of the Treasury."
Per the RI Delinquent Tax Rate Change,
Per the SC Information Letter #18-2,
|4/1/2018 - 6/30/2018||5%|
|4/1/2016 - 3/31/2018||4%|
Per the TN Interest Rate,
"The interest rate effective July 1, 2018, through June 30, 2019, will be 8.75%.
The interest rates effective for July 1, 2017 through June 30, 2018, is 8%"
Per the TX Franchise Tax Instructions,
"The interest rate to be charged is the prime rate plus 1%, as published in The Wall Street Journal on the first day of each calendar year that is not a Saturday, Sunday or legal holiday."
Per the UT Penalties and Interest,
|Calendar Year||Interest Rate|
|Year||Overpayment Annual Rate||Underpayment Annual Rate|
Individual- Per the Virgina Dept. of Taxation,
"Virginia law requires the Department of Taxation to assess interest on any balance of unpaid tax, from the due date for payment through the date the tax is paid. Interest charges apply to late payments and payments made with returns filed on extension, as well as to additional balances due with amended returns or assessed as the result of audit adjustments.
Interest is assessed at the federal underpayment rate established under Internal Revenue Code Section 6621, plus 2%. For the current daily interest rate, contact us at (804) 367-8031."
Per the West Virginia State Department - How Interest and Additions to Tax are Assessed
Individual- Per the WI Individual Income Tax Late-Filed Returns,
"Delinquent Interest -- 1.5% per month (18% per year)
Note- During an extension period, interest is charged at 1% per month (12% per year)"
Per the WI Corporate Instructions,
"A corporation that has a tax due when filing its tax return... will be charged 12% annual interest on the amount of unpaid tax... Any tax that remains unpaid after the unextended due date of the tax return continues to be subject to 18% or 12% annual interest, as appropriate."
Document ID: 000037431