Federal tax underpayment interest

Interest estimated,
quarter by quarter.

Today's underpayment rate

7.00%Standard rate · Q3 2026

Estimate interest across IRS rate changes with daily compounding, including the enhanced rate used for BBA push-out adjustments.

01 / Inputs

Balance details

Taxpayer type
Standard underpayment rates are the same for both taxpayer types.

02 / Estimate

Standard underpayment rate

Estimated interest

$14,736.16
Estimated total due $39,736.16
Interest days
3,014
Effective cost
58.94%
Avg. annual rate
5.62%

Rate-by-rate calculation

12 periods
PeriodDaysRateInterest
Apr 16, 2018Dec 31, 20182605.00%$906.39
Jan 1, 2019Jun 30, 20191816.00%$782.32
Jul 1, 2019Jun 30, 20203665.00%$1,370.20
Jul 1, 2020Mar 31, 20226393.00%$1,511.77
Apr 1, 2022Jun 30, 2022914.00%$296.36
Jul 1, 2022Sep 30, 2022925.00%$378.76
Oct 1, 2022Dec 31, 2022926.00%$460.85
Jan 1, 2023Sep 30, 20232737.00%$1,650.35
Oct 1, 2023Dec 31, 20244588.00%$3,408.50
Jan 1, 2025Mar 31, 20264557.00%$3,260.80
Apr 1, 2026Jun 30, 2026916.00%$588.13
Jul 1, 2026Jul 16, 2026167.00%$121.73

Methodology

Built around published IRS rules.

01

Quarterly rates

Uses the IRS standard underpayment rate for every day in the selected period, from 2017 through Q3 2026.

02

Daily compounding

Accrues interest at the annual rate divided by 365, or 366 in a leap year, and adds it to the balance each day.

03

Enhanced rate

BBA push-out and applicable large-corporate periods substitute 5 percentage points for the standard 3-point spread.

04

COVID court scenario

The nationwide emergency was declared Mar. 13, 2020, with a FEMA incident period beginning Jan. 20. This option applies the Kwong interpretation through July 10, 2023; the law remains unsettled.

Planning estimate only. The COVID exclusion is a disputed court-based scenario, not settled IRS treatment. Otherwise, this calculator does not include penalties, payments during the period, other interest suspensions, abatements, netting, or case-specific adjustments. Verify against IRS records and qualified advice.

IRS rate tables ↗IRC § 6226 ↗IRC § 6622 ↗FEMA COVID period ↗Kwong overview ↗IRS position ↗