The IRS announced Tuesday, Nov. 29, that interest rates will increase for the calendar quarter starting Jan. 1, 2023.
For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily, up from 6% for the fourth quarter of 2022.
The IRS determines the rate of interest on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. See the complete list of new Q1 2023 interest rates.