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IRS maintains interest rates for third quarter 2025
ARTICLE | May 14, 2025
Authored by RSM US LLP
Executive summary
The IRS has announced that interest rates will remain unchanged for the calendar quarter beginning July 1, 2025. The rates are 7% for individual taxpayers for both overpayments and underpayments, while corporations face different rates depending on payment status and amount.
IRS interest rate announcement for Q3 2025
The IRS has confirmed that interest rates will remain stable for the third quarter of 2025. According to Rev. Rul. 2025-11, the following rates will apply:
Key interest rates:
- Individual taxpayers: 7% for both overpayments and underpayments
- Corporate overpayments: 6% standard rate
- Corporate overpayments exceeding $10,000: 4.5%
- Corporate underpayments: 7%
- Large corporate underpayments: 9%
The interest rates are determined quarterly under the Internal Revenue Code, based on the federal short-term rate plus set percentage points. For non-corporate taxpayers, both overpayment and underpayment rates equal the federal short-term rate plus three percentage points.
These rates, computed from the federal short-term rate determined in April 2025, will be officially published in Internal Revenue Bulletin 2025-23, dated June 2, 2025.
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This article was written by Alice Tsvilikhovski, Jodie Dinh, John Cardone, Cindy Hull and originally appeared on 2025-05-14. Reprinted with permission from RSM US LLP.
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The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
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