# IRS interest rate 2027: current rate, next release and rate history

Source: https://backtaxesdesk.com/penalties-interest/irs-interest-rate-2027
Publisher: Back Taxes Desk (backtaxesdesk.com), independent editorial site
Topic: Penalties and Interest
Last updated: 2026-09-19

> The IRS interest rate for 2027 has not been announced yet: the January to March 2027 rate usually comes out in late November. The rate for October to December 2026 is 7% for individual underpayments and overpayments, unchanged from July to September 2026. It is based on the federal short-term rate measured in October 2026, plus 3 points.

## Key facts

- Individual underpayment rate, Oct. to Dec. 2026: 7% (IRB 2026-36)
- Q1 2027 rate: Not yet announced; usually released in late November
- Q1 2027 rate is based on: Federal short-term rate for October 2026, plus 3 points, rounded
- Lowest rate in 2024 to 2026: 6% (April to June 2026)
- Highest rate in 2024 to 2026: 8% (all of 2024)

## What is the IRS interest rate for 2027?

No IRS interest rate for 2027 has been published as of September 19, 2026. The first 2027 figure, for January 1 to March 31, 2027, is not yet announced; the IRS usually releases each quarter's rate about a month before the quarter begins, which for the first quarter means late November.

Until then, the latest published rate is 7% for individual underpayments during October to December 2026, set in Internal Revenue Bulletin 2026-36. Every IRS balance owed by an individual accrues interest at that rate, compounded daily, through December 31, 2026.

| Quarter | Individual underpayment | Individual overpayment | Bulletin |
| --- | --- | --- | --- |
| July to Sept. 2026 | 7% | 7% | 2026-22 |
| Oct. to Dec. 2026 | 7% | 7% | 2026-36 |
| Jan. to March 2027 | Not yet announced | Not yet announced | Expected late November 2026 |

IRS quarterly interest rates for late 2026 and early 2027

## When will the first 2027 rate be announced?

The IRS interest rate for Q1 2027 should appear in late November 2026, following the pattern of recent years: the first-quarter 2026 rate was published in Internal Revenue Bulletin 2025-48 and the first-quarter 2025 rate in Bulletin 2024-49, both in late November.

The rate itself is already determined by then. Under Internal Revenue Code section 6621, the federal short-term rate for the first month of each quarter sets the rate for the following quarter, so the October 2026 short-term rate, plus 3 points and rounded to a whole percent, will become the January to March 2027 rate. This page will add the figure once the IRS posts it; we do not publish forecasts of it.

## Did the IRS interest rate change in October 2026?

No. The individual underpayment rate stayed at 7% for October to December 2026, the same as July to September. The only 2026 change came in the second quarter, when the rate fell to 6% for April to June before returning to 7% in July.

### IRS penalty interest rate 2026 and underpayment penalty rate 2026

People often search for a separate IRS penalty interest rate for 2026, but there is only one individual rate. The same quarterly rate is charged as interest on unpaid penalties and is used to figure the estimated tax underpayment penalty on Form 2210. For 2026 that meant 7% in the first quarter, 6% in the second, and 7% in the third and fourth.

## IRS quarterly interest rates: history from 2023 to 2026

The table lists every quarter since January 2023 from the IRS quarterly interest rate page. Individual overpayment and underpayment rates have matched in every quarter shown; the large corporate underpayment rate runs 2 points higher than the individual rate.

| Quarter | Individual underpayment | Large corporate underpayment | Bulletin |
| --- | --- | --- | --- |
| Q1 2023 | 7% | 9% | 2022-51 |
| Q2 2023 | 7% | 9% | 2023-09 |
| Q3 2023 | 7% | 9% | 2023-23 |
| Q4 2023 | 8% | 10% | 2023-37 |
| Q1 2024 | 8% | 10% | 2023-49 |
| Q2 2024 | 8% | 10% | 2024-10 |
| Q3 2024 | 8% | 10% | 2024-24 |
| Q4 2024 | 8% | 10% | 2024-37 |
| Q1 2025 | 7% | 9% | 2024-49 |
| Q2 2025 | 7% | 9% | 2025-13 |
| Q3 2025 | 7% | 9% | 2025-23 |
| Q4 2025 | 7% | 9% | 2025-37 |
| Q1 2026 | 7% | 9% | 2025-48 |
| Q2 2026 | 6% | 8% | 2026-8 |
| Q3 2026 | 7% | 9% | 2026-22 |
| Q4 2026 | 7% | 9% | 2026-36 |

IRS quarterly interest rates, 2023 to 2026

## What a rate change means for your balance

Each 1-point move changes the yearly interest on a $10,000 balance by roughly $107 to $108 after daily compounding. Over a full year, $10,000 left unpaid costs about $618 at 6%, $725 at 7% and $833 at 8%.

| Rate | Interest for one year | Change from 7% |
| --- | --- | --- |
| 6% | $618 | About $107 less |
| 7% | $725 | Current rate |
| 8% | $833 | About $108 more |

One year of daily-compounded interest on a $10,000 IRS balance

### How the rate affects your payment plan

A rate change applies automatically to whatever you still owe from the first day of the new quarter. Your installment agreement payment stays the same, so a higher rate means more of each payment goes to interest and the plan runs longer; a lower rate shortens it. Interest continues on every type of payment plan until the balance is paid in full.

If you owe a balance heading into 2027, paying down what you can before January limits exposure to whatever the Q1 rate turns out to be. The mechanics of daily compounding and interest on penalties are explained in [how the IRS underpayment interest rate works](https://backtaxesdesk.com/penalties-interest/irs-underpayment-interest-rate). Late filing and late payment penalties for the same season are on [IRS penalty rates 2027](https://backtaxesdesk.com/penalties-interest/irs-penalty-rates-2027), and the percentage charge for filing late is explained on the [failure-to-file penalty](https://backtaxesdesk.com/penalties-interest/failure-to-file-penalty) page. For all penalty types, see the [IRS penalties guide](https://backtaxesdesk.com/penalties-interest).

## Common questions

### What is the IRS interest rate for the first quarter of 2027?

It has not been announced. The IRS usually publishes the January to March rate in late November; it will equal the October 2026 federal short-term rate plus 3 points, rounded to a whole percent.

### What is the current IRS interest rate for individuals?

7% a year for October 1 to December 31, 2026, compounded daily. The same 7% applied from July 1 to September 30, 2026.

### What was the IRS underpayment rate in 2026?

7% for January to March, 6% for April to June, and 7% for July to September and October to December 2026.

### Does the IRS pay the same interest rate on refunds?

For individuals, yes in recent years. The noncorporate overpayment rate has matched the underpayment rate in every quarter from 2023 through 2026, for example 7% in late 2026.

### Where does the IRS announce new interest rates?

In a news release and the Internal Revenue Bulletin, and on the IRS Quarterly interest rates page, which lists each quarter's rates with its bulletin number.

## Sources

- [Quarterly interest rates](https://www.irs.gov/payments/quarterly-interest-rates)
- [26 U.S. Code 6621, Determination of rate of interest](https://www.law.cornell.edu/uscode/text/26/6621)
- [Payment plans; installment agreements](https://www.irs.gov/payments/payment-plans-installment-agreements)
- [Underpayment of estimated tax by individuals penalty](https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty)