IRS announces interest rates will remain the same for the fourth quarter of 2025

On August 25th, the Internal Revenue Service announced that interest rates will not change for the calendar quarter beginning October 1, 2025.

The rates will be:

• Seven (7) percent for individual overpayments (refunds)

• Seven (7) percent for individual underpayments (balance due)

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For Taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. The interest rates announced yesterday are computed from the federal short-term rate determined during July 2025.

Source, at IRS.gov: https://www.irs.gov/newsroom/interest-rates-remain-the-same-for-the-fourth-quarter-of-2025