Beginning October 1, 2022, individual taxpayers can expect to see a 1% increase in interest rates for tax over and underpayments (taxes owed that are not fully paid).
This 6% rate is an increase from the previously established 5% (July 1, 2022) and the interest will be compounded daily. Individuals are not the only taxpayers that will be seeing the hike; corporate taxpayers with an overpayment exceeding $10,000 will be assigned a 3.5% rate, or 5% if the overpayment is below this threshold. For underpayments on the corporate side, an 8% rate will be assigned.
For more information on the new interest rates for the fourth quarter, please click here.