This release corrects a problem with the rates for the state of California. Here is a brief explanation:
On November 22, 2022, California posted rates effective January 1, 2023, of 5% for underpayments and 2% for overpayments.
On April 18, 2023, this change was deleted, so the most recent posted rate reverted to 3% for underpayments and 0% for overpayments.
On July 28, 2023, the earlier change was reposted along with a change effective July 1, 2023, of the underpayment rate to 7% and the overpayment rate to 5%.
Because we followed the April 18 posting, the 23.3.0.0 version deleted the change effective January 1. That change has been reinstated. In addition, the July 28 change was posted after the 23.3.0.0 version was created; that change has been added to this version.
The following rate changes are effective July 1, 2023:
Alaska changed from 10.25% to 10.50% for both underpayments and overpayments.
Florida changed from 9.00% to 11.00% for both underpayments and overpayments.
Michigan changed from 5.65% to 8.25% for both underpayments and overpayments.
Missouri changed from 1.30% to 1.90% for overpayments; the rate for underpayments remained at 6.00%.
New Jersey changed from 10.00% to 11.25% for underpayments and from 7.00% to 8.25% for overpayments.
Tennessee change from 8.00% to 12.25% for both underpayments and overpayments.
The following changes are retroactively effective as of April 1, 2023:
Alaska changed from 9.75% to 10.25% for both underpayments and overpayments.
The following changes are retroactively effective as of January 1, 2023:
Earlier this year the Franchise Tax Board posted an erroneous rate change for the state of California. That change has been deleted so that the rates for underpayments and overpayments remain at 3.00% and 0.00%, respectively.
Prior to January 1, 2023, Rhode Island charged the same rate (18.00%) for underpayments of all taxes. As of January 1, 2023, the rate for all tax underpayments other than those that are “trust fund” related dropped to 12.00%.
This version greatly expands the tax relief extension table. The previous version was created to accommodate tax deadline extensions for COVID-19. This version includes federal tax relief deadline extensions dating back to 2018 for various natural disasters (see the IRS page “Tax Relief in Disaster Situations“). We will continue to expand this table to include tax relief deadline extensions granted by other jurisdictions at well.
In most cases (COVID-19 being the main exception), the extension is based on what state and county the taxpayer is based in. The initial check for eligibility for the extension depends on selecting your state from the Taxpayer State pulldown. In many cases whether the extension is granted depends on what county your business is based in. However, we do not track the extensions down to that level. When we determine that you may be eligible for an extension based on your home state, we give you the official URL that outlines eligibility for the extension so that you can determine whether or not to apply it in your case.
The following changes were received after the release of version 23.1.0.0:
Georgia changed its interest rate from 6.25% to 10.5%for both underpayments and overpayments.
Kansas changed its interest rate from 4.0% to 6.0% for both underpayments and overpayments.
New Jersey changed its interest rate from 9.25% to 10.0% for underpayments and from 6.25% to 7.0% for overpayments. A retroactive change was also added to the Instant Interest rate table for New Jersey from 7.75% to 9.25% for underpayments and from 4.75 to 6.25% for overpayments from the period from November 1, 2022, to January 1, 2023.
We added a change to the rate for underpayments for Pennsylvania from 1.0% to 5.0% effective January 1, 2023. That change is based on language in Section 806.1(b.1) of the Pennsylvania Fiscal Code, which states that the rate on refunds will be 2 percentage points less than the rate on underpayments. The rate on underpayments was changed from 3.0% to 7.0% in the 23.1.0.0 release of Instant Interest.
Oregon changed its interest rate from 4.0% to 6.0% for both underpayments and overpayments.
Pennsylvania changed its interest rate from 3.0% to 7.0% for underpayments.
South Carolina changed its interest rate from 6.0% to 7.0% for underpayments and from 3.0% to 4.0% for overpayments.
Texas changed its interest rate from 4.25% to 8.5% for underpayments and from 0.276% to 3.018% for overpayments. Note: The underpayment rate is based on correspondence with the Texas Comptroller of Public Accounts office. The overpayment rate is based on the Treasury Pool rate for November 2022 (FY23) per Section 111.064 in the Texas Tax Code.
Utah changed its interest rate from 2.0% to 5.0% for both underpayments and overpayments.
Virginia changed its interest rate from 8.0% to 9.0% for both underpayments and overpayments.
Vermont changed its interest rate from 3.25% to 4.0% for both underpayments and overpayments.
West Virginia changed its interest rate from 7.75% to 11.5% for underpayments and from 6.25% to 10.0% for overpayments.
Information was not available for Georgia or Kansas, which may necessitate an interim release.
The following changes were made in the 22.4.0.0 versions effective January 1, 2023:
Colorado changed its interest rate from 6.0% to 8.0% for both underpayments and overpayments.
Idaho changed its interest rate from 3.0% to 5.0% for both underpayments and overpayments.
Maryland changed its interest rate from 9.5% to 9.0% for both underpayments and overpayments.
Maine changed its interest rate from 5.0% to 7.0% for both underpayments and overpayments.
New Hampshire changed its interest rate from 5.0% to 7.0% for underpayments and from 2.0% to 4.0% for overpayments.
Ohio changed its interest rate from 3.0% to 5.0% for both underpayments and overpayments.
The following retroactive changes were made effective November 1, 2022:
Alaska changed its interest rate from 7.0% to 8.5% for both underpayments and overpayments.
New Jersey changed its interest from 7.75% to 9.25% for underpayments and from 4.75% to 6.25% on overpayments.
Louisiana equalized the rate for underpayments and overpayments at 6.5% effective January 1, 2022.
The following changes are included in this release effective October 1, 2022:
Alabama changed its interest rate from 5.0% to 6.0% for both underpayments and overpayments.
Arizona changed its interest rate from 5.0% to 6.0% for both underpayments and overpayments.
Federal (IRS) changed its interest rate from 5.0% to 6.0% for underpayments and from 4.0% to 5.0% for overpayments.
New Mexico changed its interest rate from 5.0% to 6.0% for both underpayments and overpayments.
New York City changed its interest rate from 9.0% to 10.0% for underpayments and from 4.0% to 5.0% for overpayments.
New York State changed its interest rate from 9.0% to 10.0% for underpayments and from 4.0% to 5.0% for overpayments.
South Carolina changed its interest rate from 5.0% to 6.0% for underpayments and from 2.0% to 3.0% for overpayments.
Virginia changed its interest rate from 7.0% to 8.0% for both underpayments and overpayments.
The following changes are included in this release effective January 1, 2023:
Colorado will change its interest rate from 6.0% to 8.0% for both underpayments and overpayments.
Idaho will change its interest rate from 3.0% to 5.0% for both underpayments and overpayments.
Maryland will change its interest rate from 9.5% to 9.0% for both underpayments and overpayments.
Maine will change its interest rate from 5.0% to 7.0% for both underpayments and overpayments.
New Hampshire will change its interest rate from 5.0% to 7.0% for underpayments and from 2.0% to 4.0% for overpayments.
Ohio will change interest interest rate from 3.0% to 5.0% for both underpayments and overpayments.
Note: Inquiries have been sent to the appropriate tax departments for Massachusetts and Missouri, but as of September 30, 2022, no response has been received.
