Indiana Tax Interest Rates Set for 2026

• 100 N. Senate Ave. Indianapolis, IN 46204 • dor.in.gov Replaces Notice #3, dated January 1, 2025

Summary of Changes

Each year, the Indiana Department of Revenue Commissioner is required to establish the applicable interest rates for tax overpayments and underpayments that will take effect for the immediately succeeding calendar year. The purpose of this notice is to inform the public of the interest rates that will be effective beginning Jan. 1, 2026.

Introduction

Pursuant to IC 6-8.1-10-1, the rate of interest for an underpayment of tax and an excess tax payment is the percentage rounded to the nearest whole number that equals two percentage points above the average investment yield on state general fund money for the state's fiscal year ending June 30, 2025, excluding pension fund investments, as provided by the State Treasurer's office. The rate of interest for an underpayment of tax and an excess tax payment for calendar year 2026 will be 7%. A historical list of the above-calculated percentages is attached to this document. If you have any questions concerning this notice, please contact the Tax Policy Division at taxpolicy@dor.in.gov.

Christopher W. Russell

General Counsel

Indiana Department of Revenue

Indiana Department of Revenue Indiana Government Center Departmental Notice #3 Subject: Interest Rates for Calendar Year 2026 Publication Date: October 2025 Effective Date: January 1, 2026 Reference(s): IC 6-8.1-10-1

Indiana Department of Revenue • Departmental Notice #3

Historical Interest Rate List

1990 10% 10% 1991 10% 10% 1992 8% 8% 1993 7% 7% 1994 7% 7% 1995 4% 6% 1996 5% 7% 1997 5% 7% 1998 5% 7% 1999 5% 7% 2000 5% 7% 2001 6% 8% 2002 6% 8% 2003 4% 6% 2004 2% 4% 2005 1% 3% 2006 2% 4% 2007 3% 5% (January 1 to June 30) 2007 ( 5% 5% 10% 10% 1989 July 1 to December 31) 2008 7% 7% 2009 7% 7% 2010 4% 4% 2011 9% 9% 4% 4% 2012 2013 3% 3%

2017 3% 3% 2018 3% 3% 2019 3% 3% 2020 4% 4% 2021 4% 4% 2022 3% 3% 2023 2% 2% 2% 2% 2016 2024 4% 4% 2025 6% 6%

Delinquent Payments Overpayments Year 3% 3% 7% 3% 3% 7%