Irs Payment Plan Interest Rate 2025. This is your penalty for not paying your entire tax balance at once. Penalties and interest will continue to grow until you pay the full balance.
7% for overpayments (payments made in excess of the amount owed), 6% for corporations. Once you have an approved payment plan, the penalty rate is 0.25% per month or about 3% per year, and the interest rate is currently 4%, but may increase each quarter.