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/


Federal Interest Rates

 
 The IRS rates for tax underpayments will remain at 5% for the 3rd quarter of 2018.

 

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...).

Alabama

Hawaii Massachusetts New York Texas Franchise
Arizona Idaho Michigan North Carolina Utah
Arkansas Illinois Minnesota North Dakota Vermont
California Indiana Mississippi Ohio Virginia
Colorado Iowa Missouri Oklahoma West Virginia
Connecticut Kansas Montana Oregon Wisconsin
Delaware Kentucky Nebraska Pennsylvania  
District of Columbia Louisiana New Hampshire Rhode Island  
Florida Maine New Jersey South Carolina  

Georgia

Maryland New Mexico Tennessee  

 

  

 

ALABAMA

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.


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ARIZONA

Per the AZ Interest Rates,

Interest Thru Quarterly Rate
1/1/2017 - 3/31/2018 4%
4/1/2018 - 9/30/2018 5%


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ARKANSAS

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."


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CALIFORNIA

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


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COLORADO

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."


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CONNECTICUT

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."


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DELAWARE

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."


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DISTRICT OF COLUMBIA

Per the D-40 Instructions and D-20 Instructions,

"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


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FLORIDA

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.


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GEORGIA

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]"


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HAWAII

Per the HI N-11 Instructions, HI N-30 Instructions (Corporate), HI N-35 Instructions (S Corporate),

"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."


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IDAHO

Individual- Per the Idaho Interest Rates,

Year Monthly Rate
2018 .0033
2017 .0025
2016 .0033

 

Corporate, S Corporate, and Partnership- Per Form 41 and 41S Instructions and Form 65 Instructions,

"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)."


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ILLINOIS

Per the IL Interest Rates,

Date Underpayment Yearly Rate
07/01/2018 - 12/31/2018 5%
07/01/2016 - 06/30/2018 4%


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INDIANA

Per the IN DOR Departmental Notice #3,

Year Delinquent Yearly Payments
2018 2%
2017 3%
2016 3%
2015 3%


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IOWA

Per the IA History of Interest Rates,

Year Monthly Rate
2018 .5%
2010-2017 .4%


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KANSAS

Per the KS Penalty and Interest,

Date Monthly Rate
01/01/2017 - 12/31/2018 5%
01/01/2013 - 12/31/2016 4%
01/01/2010 - 12/31/2012 5%


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KENTUCKY

Per the KY Penalties Interest and Fees,

Year Yearly Rate
2018 6%
2017 5%
2016 6%


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LOUISIANA

 Per the Louisiana Interest Rate Schedule 

Date Monthly Interest Rate
01/01/2018 - 12/31/2018  .6666%
01/01/2017 - 12/31/2017  .6042%


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MAINE

Individual- Per the ME Interest Rates,

Dates Monthly Rate
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%"


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MARYLAND

Per the MD Income Tax InstructionsMD Pass-through Entity Instructions,

"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."

MD Corporate Income Tax Instructions,

"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."

MD Pass-through Entity Instructions,

"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.


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MASSACHUSETTS

See TIR 18-3: Interest Rate on Overpayments and Underpayments,

Year Underpayments
2018 Q1 5% - Q2 6% 
2017 4%
2016 Q1 4%, Q2 5%, Q3 5%


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MICHIGAN

Per the MI Revenue Administrative Bulletin 2017-22,

Period Rate
01/01/2018 - 6/30/2018 5.15%
07/01/2017 - 12/31/2017 4.7%


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MINNESOTA

Per the MN Interest Rates,

Year Rates
2017 - Current 4%
2010 - 2016 3%


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MISSISSIPPI

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...."


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MISSOURI

Per the MO Interest Rates - Delinquencies,

Year Interest Rates
2018 4%
2017 4%

Note- Scroll down the page to the Delinquencies table.


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MONTANA

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."


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NEBRASKA

Per the NE Interest Rate Assessed on State Taxes,

Period Interest Rate
01/01/2013 to present 3%
01/01/2009 - 12/31/2012 5%

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NEW HAMPSHIRE

Per the NH Interest Rates for Underpayment and Overpayment of Tax,

Period Interest for Underpayment of Tax
01/01/2017 - 12/31/2018 6%
1/1/2013 - 12/31/2016 5%


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NEW JERSEY

Per the NJ-1040 Instructions, CBT-100 Instructions, CBT-100S Instructions, and NJ-1065 Instructions,

"Interest- 3% above the prime rate for every month or part of a month the tax is unpaid, compounded annually"


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NEW MEXICO

Per the NM Penalty & Interest Rates,

Period Annual Rate
4/1/2018 - 9/30/2018 5%
4/1/2016 - 3/31/2018 4%


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NEW YORK

Per the NY Current Interest Rates,

Period Rate
10/1/2018 - 12/31/2018 7.5%


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NORTH CAROLINA

Per the NC Interest Rates,

Period Rate
7/1/2008 - 12/31/2018 5%
1/1/2008 - 6/30/2008 7%


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NORTH DAKOTA

Per the ND Individual Instructions, ND Corporate Instructions, ND Partnership Instructions, and ND S Corporate Instructions,

"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)..."


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OHIO

Per the OH Annual Certified Interest Rates,

Calendar Year Monthly Accrual
2018 0.33%
2017 0.33%


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OKLAHOMA

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..."


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OREGON

Per the OR 40 Instructions, and OR Partnership instructions,

"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."


Per the OR Corporate Instructions, and OR S Corporate Instructions

For periods beginning Annually
01/01/2018 5%
01/01/2017 5%

 


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PENNSYLVANIA

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."


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RHODE ISLAND

Per the RI Delinquent Tax Rate Change,

Year Yearly Rate
2018 18%
2017 18%


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SOUTH CAROLINA

Per the SC Information Letter #18-2,

Period Rate
4/1/2018 - 6/30/2018 5%
4/1/2016 - 3/31/2018 4%


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TENNESSEE

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%"


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TEXAS FRANCHISE

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."


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UTAH

Per the UT Penalties and Interest,

Calendar Year Interest Rate
2018 3%
2017 3%


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VERMONT

Per VT Department of Taxes,

Year Overpayment Annual Rate Underpayment Annual Rate
2018 4% 6%
2017 3.6% 5.6%

 


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VIRGINIA

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."


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WEST VIRGINIA

Per the West Virginia State Department - How Interest and Additions to Tax are Assessed

Year Yearly Rate
2018 8.75%
2017 8%


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WISCONSIN

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."


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Document ID: 000037431