The IRS announced that interest rates will remain unchanged for the calendar quarter beginning October 1, 2026. For individuals, overpayment rates will be 7% annually (compounded daily), while underpayment rates will be 7%. Corporations will face 6% for overpayments and 9% for large corporate underpayments. A portion of corporate overpayments exceeding $10,000 will carry a 4.5% rate. Rates are calculated using the federal short-term rate plus specified percentages. The rates apply to taxes owed or overpaid during the quarter. The federal short-term rate used was determined in July 2026. Details appear in Revenue Ruling 2026-15, published in Internal Revenue Bulletin 2026-36 on August 31, 2026.
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