IRS Interest Calculator
Calculate your interest owed to the IRS accurately using this helpful tool. Input the amount owed, the date of tax assessment, and the payment date to determine the interest accrued. This calculator considers the applicable interest rate set by the IRS, providing a clear breakdown of interest calculations.
In order to use our free online IRS Interest Calculator, simply enter how much tax it is that you owe (without the addition of your penalties as interest is not charged on any outstanding penalties), select the "Due Date" on which your taxes should have been paid (this is typically the 15th of April), and lastly select the "Payment Date" (the date on which you expect to pay the full amount that you owe). Given that the IRS publishes their short-term interest rates at the end of each tax quarter, the latest date that you are able to select is the final day of the ongoing tax quarter.
If you don't pay your taxes on time, then the IRS will add interest to the amount that you already owe. More so, this interest is added on a daily occurrence, right up until you fully pay the money that you owe them. Even if you have requested a time extension, you must pay this interest as the extension only applies to the time that you have to pay the taxes.
Currently, the IRS interest rate which is applied to outstanding taxes is their short-term rate and an additional 3%. Every three months, the short-term rate is calculated by the IRS and is then published for taxpayers to see.
Something worth noting is that this free online IRS Interest Calculator is designed only for the use of individuals (both single and married) and not for the use of companies. Furthermore, the IRS interest rates which this calculator uses are updated at the end of each tax quarter.
What is IRS Interest Calculator
The IRS Interest Calculator is a tool used to estimate the amount of interest that may be owed to the Internal Revenue Service (IRS) for late payment or underpayment of taxes. It helps individuals or businesses calculate the interest charges on outstanding tax liabilities.
To use the calculator, you typically need to provide the following information:
- Tax Liability: The amount of taxes owed to the IRS.
- Payment Date: The date when the taxes were originally due or the date of underpayment.
- Payment Date of Actual Payment: The date when the taxes are actually paid or will be paid.
Based on this information, the calculator will estimate the interest charges on the outstanding tax liability. It takes into account the interest rates set by the IRS, which can vary depending on the specific tax year and category of tax (such as income tax, payroll tax, or estate tax).
Please note that the IRS interest rates and rules can change over time, so it's important to use an updated calculator or consult with a tax professional for accurate and up-to-date information regarding your specific interest obligations to the IRS. Additionally, the IRS may also apply penalties for late payment or underpayment, which are not calculated by the interest calculator and may need to be considered separately.
IRS Interest Formula
Interest Amount = Amount Owed * Factor ,
Interest Amount = Amount Owed * ((1 + Daily Rate)days - 1) ,
Interest Amount = Amount Owed * (1 + Daily Rate)days - Amount Owed
IRS Interest Rates Table
| Year |
Q1 1/1 - 3/31 |
Q2 4/1 - 6/30 |
Q3 7/1 - 9/30 |
Q4 10/1 - 12/31 |
|---|---|---|---|---|
| Noncorporate Overpayments and Underpayments | ||||
|
2023 |
7% |
- |
- |
- |
|
2022 |
3% |
4% |
5% |
6% |
|
2021 |
3% |
3% |
3% |
3% |
|
2020 |
5% |
5% |
3% |
3% |
|
2019 |
6% |
6% |
5% |
5% |
|
2018 |
4% |
5% |
5% |
5% |
|
2017 |
4% |
4% |
4% |
4% |
|
2016 |
3% |
4% |
4% |
4% |
|
2015 |
3% |
3% |
3% |
3% |
|
2014 |
3% |
3% |
3% |
3% |
|
2013 |
3% |
3% |
3% |
3% |
|
2012 |
3% |
3% |
3% |
3% |
|
2011 |
3% |
4% |
4% |
3% |
|
2010 |
4% |
4% |
4% |
4% |
|
2009 |
5% |
4% |
4% |
4% |
|
2008 |
7% |
6% |
5% |
6% |
|
2007 |
8% |
8% |
8% |
8% |
|
2006 |
7% |
7% |
8% |
8% |
|
2005 |
5% |
6% |
6% |
7% |
|
2004 |
4% |
5% |
4% |
5% |
|
2003 |
5% |
5% |
5% |
4% |
|
2002 |
6% |
6% |
6% |
6% |
|
2001 |
9% |
8% |
7% |
7% |
|
2000 |
8% |
9% |
9% |
9% |
|
1999 |
7% |
8% |
8% |
8% |
| Underpayments | ||||
|
1998 |
9% |
8% |
8% |
8% |
|
1997 |
9% |
9% |
9% |
9% |
|
1996 |
9% |
8% |
9% |
9% |
|
1995 |
9% |
10% |
9% |
9% |
|
1994 |
7% |
7% |
8% |
9% |
|
1993 |
7% |
7% |
7% |
7% |
|
1992 |
9% |
8% |
8% |
7% |
|
1991 |
11% |
10% |
10% |
10% |
|
1990 |
11% |
11% |
11% |
11% |
|
1989 |
11% |
12% |
12% |
11% |
|
1988 |
11% |
10% |
10% |
11% |
|
1987 |
9% |
9% |
9% |
10% |
You may also like to try our US Salary Tax Calculator to determine how much tax will be paid on your annual Salary.
