How Much is IRS Interest Rates?

For April-May 2025, the IRS interest rates are

For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily.  Here is a complete list of the new rates: 

• 7% for overpayments (payments made in excess of the amount owed), 6% for corporations.

• 4.5% for the portion of a corporate overpayment exceeding $10,000.

• 7% for underpayments (taxes owed but not fully paid).

• 9% for large corporate underpayments.

Keep in mind, the effective interest is even higher as IRS compounds interest on a daily basis. 7% interest compounded daily is about 7.25%.