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The Free Financial Advisor

Amanda Blankenship

IRS Keeps Interest Rate at 7% for Taxpayers Who Owe Money in Late 2026

IRS

IRS interest rates 2026 — The IRS will keep its interest rate on individual tax underpayments and overpayments at 7% annually, compounded daily, for the fourth quarter beginning October 1, 2026. Pixel-Shot/Shutterstock

Taxpayers carrying an unpaid federal tax balance will continue facing a 7% annual interest rate through the end of 2026.

The Internal Revenue Service announced August 21 that interest rates will remain unchanged for the calendar quarter beginning October 1, 2026. For individuals, both tax underpayments and overpayments will carry a 7% annual rate, compounded daily.

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