Department of State Revenue Docket 250475 Other

in-20251015-IR-045250475NRA: SUBJECT: Interest Rates for Calendar Year 2026

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Summary

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. 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.

The agency’s own summary, as published.

The rule, in full

348 words as published, October 15, 2025. View the original →

DEPARTMENT OF STATE REVENUE Departmental Notice #3 October 2025 Effective Date: January 1, 2026 (Replaces Notice #3, dated January 1, 2025) SUBJECT: Interest Rates for Calendar Year 2026 REFERENCE(S): IC 6-8.1-10-1 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 Historical Interest Rate List Year Overpayments Delinquent Payments 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (January 1 to June 30) 2007 (July 1 to December 31) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10% 10% 10% 8% 7% 7% 4% 5% 5% 5% 5% 5% 6% 6% 4% 2% 1% 2% 3% 5% 7% 7% 4% 9% 4% 3% 3% 3% 2% 3% 3% 3% 4% 4% 3% 2% 4% 6% 7% 10% 10% 10% 8% 7% 7% 6% 7% 7% 7% 7% 7% 8% 8% 6% 4% 3% 4% 5% 5% 7% 7% 4% 9% 4% 3% 3% 3% 2% 3% 3% 3% 4% 4% 3% 2% 4% 6% 7% Replaces Notice Document: 20241030-IR-045240421NRA

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