When the IRS owes you interest
The IRS gets 45 days to send your refund without paying interest. If it takes longer, it owes you interest for the whole period, not just the days after day 45. Interest runs from the start date, usually the return's due date, to the day the refund is issued. If the IRS applies your refund to a balance you owe instead, interest stops on that date.
When interest starts
Tax withheld from your pay and your estimated payments count as paid on the return's due date. So for most people, interest starts on the due date. For 2025 returns, that was April 15, 2026. Your filing date decides the rest.
- You filed by the due date. Interest starts on the due date, and the 45 days count from the due date too. Filing early doesn't start the 45 days sooner.
- You filed on extension. That means after the due date, but by your extended deadline. Interest still starts on the original due date. But the 45 days count from the day you filed.
- You filed late. That means after the due date with no extension, or after your extended deadline. You earn no interest for any day before you filed. Interest and the 45 days both start on your filing date.
One more catch: a return doesn't count as filed until it's in a form the IRS can process. Need a due date? The tax deadlines guide lists due dates and extended deadlines by tax year.
Amended returns
Claiming a refund on an amended return (Form 1040-X)? If the IRS sends the refund within 45 days after you file the amended return, you get no interest from the day you filed it to the refund date. Interest for the time before that still counts. Check the amended return box above and enter the date you filed it.
The rate the IRS pays
For individuals, the IRS pays the same rate on refunds that it charges on unpaid tax. That's the federal short-term rate plus 3 percentage points. It resets every quarter and compounds daily. It's 7% for October through December 2026. Corporations get a lower rate on refunds. This calculator is for individuals.
Open the breakdown under your result to see the days, rate, and interest for each quarter. Owe the IRS instead? Try the IRS interest calculator.
Refund interest is taxable
Interest the IRS pays you is taxable income for the year you receive it. So interest you get in 2026 counts as 2026 income.
Why the IRS figure may differ
- Interest can stop a little early. The IRS can stop counting interest up to 30 days before the refund date. So the amount you get may be slightly lower.
- Disaster postponements. If your due date was postponed for a federally declared disaster, your dates may differ.
- What the calculator covers. It handles individual returns for tax years 2021 to 2025. It assumes your refund came from withholding or estimated payments.
Questions people ask
Does the IRS pay interest on late refunds?
Yes, if the refund takes more than 45 days. The 45 days count from the due date, or from the day you filed if that was later. Once the refund is late, interest covers the whole period, not just the days after day 45.
What interest rate does the IRS pay on refunds?
For individuals, the same rate it charges on unpaid tax, compounded daily. It's 7% a year for October through December 2026. The rate resets every quarter.
Does an extension change the interest?
If you filed after the due date but by your extended deadline, interest still starts on the original due date. The 45 days count from the day you filed.
Do I pay tax on refund interest?
Yes. Interest the IRS pays you is taxable income for the year you receive it.