For the first time since 2020, the IRS will lower the interest rates for tax overpayments and underpayments in the first quarter of 2025.
The IRS announced on Monday, Nov. 18, that interest rates will decrease by a percentage point across the board for the calendar quarter beginning Jan. 1, 2025.
For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. See the full list of new interest rates.