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May 17, 2026 • 3:28 AM ET
The IRS overpayment interest rate for Q2 2026 (April 1 through June 30) is 6% annually, compounded daily, per the IRS official quarterly interest rate page. For Q1 2026 (January 1 through March 31), the rate was 7%, per IRS Revenue Ruling 2025-22. Interest on a late refund begins accruing 45 days after the April 15 filing deadline, per IRS interest payment guidance.
The IRS owes 6% annual interest on late refunds in Q2 2026, compounded daily, per irs.gov. Interest begins 45 days after the April 15 filing deadline, which means May 30 for most filers. Millions of Americans with delayed 2025 returns are accruing interest right now without knowing it. The IRS deposits interest alongside the refund automatically.
The IRS owes you money if your refund has not arrived. Not just your refund, interest on top of it. For the second quarter of 2026, covering April 1 through June 30, the IRS overpayment interest rate is 6% annually, compounded daily, confirmed at the IRS quarterly interest rate page.
For refunds delayed past 45 days from the April 15 filing deadline, the interest clock started running on May 30, 2026. Every day your refund sits unissued after that date, the IRS adds interest to what it owes you. Most Americans do not know this.
Many who do not know this are sitting on interest income right now that the IRS will pay automatically when it finally releases the refund. The IRS authorizes refunds but the Bureau of the Fiscal Service at the U.S. Treasury disburses them through the FedACH network.
The interest calculation runs from the filing date, not from the authorization date, which means the IRS’s internal processing delays are on the IRS’s clock and the IRS’s cost. The U.S. money movement system explains how the pipeline from IRS authorization to Treasury disbursement to your bank account works in institutional terms.
Exactly when the IRS interest clock starts and how much you are owed
The IRS has a 45-day window to issue your refund before interest begins accruing, per irs.gov/payments/interest. For 2025 tax returns filed on or before April 15, 2026, the interest clock starts on May 30, 2026, 45 days after April 15.
If your refund has not arrived by May 30, the IRS owes you 6% annually on the entire refund amount, compounded daily, for every day from May 30 until the refund is issued.
For a filer who filed after April 15, the clock starts 45 days from the actual filing date, not April 15. If you filed on April 20, 2026, interest begins on June 4, 2026. If you filed on May 1, 2026, interest begins on June 15, 2026. Every day of delay after the 45-day window is interest income you are owed.
The math is straightforward. On a $2,500 refund at 6% annually compounded daily, interest accrues at approximately $0.41 per day. Thirty days of delay past the 45-day window produces approximately $12.30 in interest. Sixty days of delay produces approximately $24.70.
These are modest amounts, but they are legally owed to you and the IRS deposits them automatically alongside the refund without requiring any action on your part.
For a $5,000 refund at 6% daily compounding, the daily interest accrual is approximately $0.82. Sixty days of delay past the 45-day window produces approximately $49.60 in interest. For a $10,000 refund, the same 60-day delay produces approximately $99.20 in interest.
The IRS pays it. You report it as taxable income the following year. If the IRS pays you more than $10 in interest, it will send you a 1099-INT form at the start of 2027 to document the income, per IRS Topic 403.
The IRS late refund interest guide covers the Q1 2026 rate of 7% and the transition to 6% in Q2 in detail. The IRS refund approval and bank posting guide explains why the interest is owed at the IRS level even if your bank has not yet posted the deposit.
What happened to the Q1 7% rate and why Q2 dropped to 6%
The IRS overpayment interest rate for individuals was 7% in Q1 2026, from January 1 through March 31, per the IRS November 2025 announcement. It dropped to 6% for Q2 2026 because the IRS calculates its interest rates quarterly based on the federal short-term rate plus 3 percentage points, per the Internal Revenue Code.
When the Federal Reserve’s rate environment shifted the federal short-term rate lower in the quarter ending December 2025, the Q2 2026 IRS rate recalculated to 6%. This matters for two groups of filers. If your refund was delayed and issued during Q1 at 7%, the IRS calculated your interest at the higher rate for that quarter.
If your refund crosses from May into June while still delayed, the first portion of your interest accrues at 6% (current Q2 rate) and if not resolved by July 1, will recalculate again for Q3. The IRS applies the correct rate automatically. You do not need to track it manually.
What changes the rate calculation is whether the Federal Reserve raises rates at June 16. A 25 basis point rate hike on June 16 would affect the Q3 2026 IRS interest rate, because IRS quarterly rates lag the Fed by one quarter.
A June 16 hike would raise the IRS Q3 2026 overpayment rate to 7% or higher for refunds still outstanding after July 1, 2026. This is the direct consumer connection between the Warsh June 16 vote and your IRS refund check. The Warsh June 16 rate hike impact covers the broader consumer rate environment.
What you should do now
- If your 2025 federal return was filed on or before April 15, 2026 and your refund has not arrived, check your refund status at IRS refunds . If the status shows “We received your return and sent your refund” with a date more than 45 days after April 15, interest has been accruing since May 30.
- If you believe the IRS owes you interest and has not paid it, check your transcript at IRS account for a credit interest transaction code alongside Code 846 (refund issued). The absence of a credit interest code when your refund was delayed more than 45 days is grounds to contact the IRS.
- Do not file Form 843 to claim interest on a late refund unless the IRS has explicitly failed to include it. The IRS pays interest automatically. Form 843 is for interest abatement, which is a different process for situations where you owe money, not where the IRS owes you.
- When you receive a delayed refund, verify the total deposit amount against your expected refund. The difference between your expected refund and the deposited amount is your interest income. Note that amount because you will report it as taxable income on your 2026 return.
- Call IRS at 800-829-1040 if your refund has been delayed more than 90 days. Agents can confirm whether your interest has been correctly calculated and when disbursement is expected.
