Updated October 16, 2026. Quick answer: For the fourth quarter of 2026 (October 1 to December 31) the IRS charges individuals 7% a year, compounded daily, on underpayments and pays 7% on overpayments. The same quarter pays corporations 6% on overpayments, 4.5% on the part of a corporate overpayment above $10,000, and charges 9% on large corporate underpayments, per Rev. Rul. 2026-15. The rate for the second quarter was lower, 6%.
Related rate pages: the July 2027 segment rates, IRS interest rates for the second quarter of 2027, IRS interest rates for the third quarter of 2027 and IRS interest rates for the fourth quarter of 2027.
IRS quarterly interest rates: IRS interest rates for the first quarter of 2027.
Upcoming IRS segment rates, not yet published: the January 2027 segment rates, the February 2027 segment rates, the March 2027 segment rates and the June 2027 segment rates.
More on the IRS segment rates: the December 2025 segment rates, the January 2026 segment rates, the February 2026 segment rates and the July 2026 segment rates.
The four 2026 quarterly rates
Each quarter’s rates come from one revenue ruling. All figures are annual rates compounded daily, as printed in the ruling named in the second column:
| Quarter | Ruling and bulletin | Individual underpayment | Individual overpayment | Corporate overpayment | Corporate overpayment above $10,000 | Large corporate underpayment |
|---|---|---|---|---|---|---|
| First quarter (from January 1, 2026) | Rev. Rul. 2025-22, Bulletin 2025-48, Nov. 24, 2025 | 7% | 7% | 6% | 4.5% | 9% |
| Second quarter (from April 1, 2026) | Rev. Rul. 2026-5, Bulletin 2026-8, Feb. 17, 2026 | 6% | 6% | 5% | 3.5% | 8% |
| Third quarter (from July 1, 2026) | Rev. Rul. 2026-10, Bulletin 2026-22, May 26, 2026 | 7% | 7% | 6% | 4.5% | 9% |
| Fourth quarter (from October 1, 2026) | Rev. Rul. 2026-15, Bulletin 2026-36, Aug. 31, 2026 | 7% | 7% | 6% | 4.5% | 9% |
How each rate is built
The rulings state the formula. For individuals: “the overpayment rate is the sum of the federal short-term rate plus 3 percentage points” and “the underpayment rate is the sum of the federal short-term rate plus 3 percentage points”. The corporate overpayment rate adds 2 points, the part of a corporate overpayment above $10,000 adds one-half point, and large corporate underpayments add 5. The federal short-term rate is the daily-compounding rate, rounded to the nearest full percent, determined in the first month of the preceding quarter. Recomputed here from each ruling’s printed short-term rate, every rate in the table above matches:
| Quarter | Short-term rate used (month) | Individual rates | Corporate overpayment | Corporate overpayment above $10,000 | Large corporate underpayment |
|---|---|---|---|---|---|
| First quarter | 4% (October) | +3 = 7% | +2 = 6% | +0.5 = 4.5% | +5 = 9% |
| Second quarter | 3% (January) | +3 = 6% | +2 = 5% | +0.5 = 3.5% | +5 = 8% |
| Third quarter | 4% (April) | +3 = 7% | +2 = 6% | +0.5 = 4.5% | +5 = 9% |
| Fourth quarter | 4% (July) | +3 = 7% | +2 = 6% | +0.5 = 4.5% | +5 = 9% |
The individual rate, 2022 to 2026
The same ruling that sets the fourth-quarter 2026 rate prints the whole history of the noncorporate overpayment and underpayment rate, one row per quarter. Since 2022:
| Year | Jan 1 to Mar 31 | Apr 1 to Jun 30 | Jul 1 to Sep 30 | Oct 1 to Dec 31 |
|---|---|---|---|---|
| 2022 | 3% | 4% | 5% | 6% |
| 2023 | 7% | 7% | 7% | 8% |
| 2024 | 8% | 8% | 8% | 8% |
| 2025 | 7% | 7% | 7% | 7% |
| 2026 | 7% | 6% | 7% | 7% |
The 2026 row matches the four rulings above.
Where the underpayment rate also applies
Rev. Rul. 2026-15 says “Thus, the 7 percent rate also applies to estimated tax underpayments for the fourth calendar quarter beginning October 1, 2026.” It also gives “the rate of interest on section 6603 deposits is 4 percent for the fourth calendar quarter in 2026”. Penalties are separate from the interest these rulings set; for what happens when a balance cannot be paid at once, see IRS payment plans, and for a penalty on a clean record, first-time penalty abatement.
When the next rate arrives
Each quarter’s rate is set from a short-term rate determined earlier. The rulings name the month: October 2025 for the first quarter, January 2026 for the second quarter, April 2026 for the third quarter, July 2026 for the fourth quarter. The IRS announced the fourth-quarter rates in news release IR-2026-98 on August 21, 2026. The first quarter of 2027 will be set the same way and announced in its own ruling; this page prints no estimate of it.
Common mistakes
- Using the individual rate for a corporation. Corporations get different overpayment and large-underpayment rates.
- Assuming the rate stays at 7% all year. The second quarter of 2026 was 6%.
- Treating one quarter’s rate as the rate for the whole year of a long-running balance. Each quarter has its own rate.
- Confusing the interest rate with the penalty. The rulings set interest only.
Related: IRS payment plans, first-time penalty abatement, safe-harbor estimated taxes, and quarterly estimated taxes.
Sources
- Rev. Rul. 2025-22, interest rates for the quarter beginning January 1, 2026 (IRS): https://www.irs.gov/pub/irs-drop/rr-25-22.pdf
- Rev. Rul. 2026-5, interest rates for the quarter beginning April 1, 2026 (Internal Revenue Bulletin 2026-8): https://www.irs.gov/irb/2026-08_IRB
- Rev. Rul. 2026-10, interest rates for the quarter beginning July 1, 2026 (Internal Revenue Bulletin 2026-22): https://www.irs.gov/irb/2026-22_IRB
- Rev. Rul. 2026-15, interest rates for the quarter beginning October 1, 2026 (IRS): https://www.irs.gov/pub/irs-drop/rr-26-15.pdf
- IRS news release IR-2026-98, August 21, 2026, interest rates for the fourth quarter of 2026: https://www.irs.gov/newsroom/interest-rates-remain-the-same-for-the-fourth-quarter-of-2026
Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.