---
title: IRS Interest Is 7% Right Now: 2026 Guide | TaxTruce
url: https://taxtruce.com/blog/irs-interest-is-7-percent
updated: 2026-10-29
---

# IRS interest is 7% right now

October 28, 20263 sourcesWritten by the TaxTruce team[Fact checked](/editorial-standards)

The short answer

For individuals, IRS interest is 7% a year in the fourth quarter of 2026, and it compounds daily. It runs on top of penalties. The failure to pay penalty adds 0.5% a month, up to 25%. Filing late adds 5% a month, up to 25%.

Interest starts on the due date and keeps running until the balance is paid in full. It also grows on the penalties.

If you filed but did not pay, the failure to pay penalty is 0.5% of the unpaid tax each month, up to 25%. On a payment plan, if you filed on time, it drops to 0.25% a month.

If you did not file, the failure to file penalty is 5% a month, up to 25%. That is ten times bigger, so file on time even if you can't pay.

For returns due after Dec 31, 2025 that are over 60 days late, the smallest failure to file penalty is $525 or 100% of the tax, whichever is less.

## Key facts

* Interest: 7% a year for individuals, Q4 2026
* Failure to pay: 0.5% a month, up to 25%
* Failure to file: 5% a month, up to 25%
* On a plan, filed on time: 0.25% a month

## Next steps

* [Penalty and interest calculator](/tools/penalty-calculator)
* [Payment plan estimator](/tools/payment-plan-estimator)
* [What you owe changes the rules](/owe-irs)

General information, not tax or legal advice. Updated October 28, 2026. Sources are linked.

## Sources

1. [IRS: interest rates for the fourth quarter of 2026](https://www.irs.gov/newsroom/interest-rates-remain-the-same-for-the-fourth-quarter-of-2026)
2. [IRS: Failure to pay penalty](https://www.irs.gov/payments/failure-to-pay-penalty)
3. [IRS: Failure to file penalty](https://www.irs.gov/payments/failure-to-file-penalty)

Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.