Interest Rates
The Sales and Use Tax Law provides in Section 6482 that "debit" interest will be added to determinations. Sales and Use Tax Law provides in Section 6907 that "credit" interest will be paid on refunds, unless disallowed by Section 6908 because the overpayment was made intentionally or by reason of carelessness.
The interest rate applied to unpaid or underpaid taxes is based on the rate charged by the Internal Revenue Service plus 3 percent. Every January and July the Board evaluates the rates. If it is determined that a rate change is required, the change takes effect 6 months later and remains in effect for at least 6 months.
An interest calculator is available to help calculate interest due.
For more information about when interest applies and when you may be relieved of interest charges, see Publication 75, Interest and Penalties
| Period Beginning - Ending |
"Debit" Rate for Deficiencies |
"Credit" Rate for Refunds |
Monthly Factor * |
|---|---|---|---|
| 07/01/12 - 12/31/12 | 6% | 0% | .00500 / .00000 |
| 01/01/12 - 06/30/12 | 7% | 0% | .00583 / .00000 |
| 07/01/11 - 12/31/11 | 6% | 0% | .00500 / .00000 |
| 01/01/10 - 06/30/11 | 7% | 0% | .00583 /.00000 |
| 07/01/09 - 12/31/09 | 8% | 0% | .00667 /.00000 |
| 01/01/09 - 06/30/09 | 8% | 2% | .00667 /.00167 |
| 07/01/08 - 12/31/08 | 10% | 3% | .00833 /.0025 |
| 01/01/07 - 06/30/08 | 11% | 5% | .00917 /.00417 |
| 07/01/06 - 12/31/06 | 10% | 4% | .00833 /.00333 |
| 01/01/06 - 06/30/06 | 9% | 3% | .0075 /.0025 |
| 07/01/05 - 12/31/05 | 8% | 2% | .00667 /.00167 |
| 07/01/04 - 06/30/05 | 7% | 1% | .00583 /.00083 |
| 07/01/03 - 06/30/04 | 8% | 1% | .00667 /.00083 |
| 07/01/02 - 06/30/03 | 9% | 2% | .0075 /.00167 |
| 01/01/02 - 06/30/02 | 10% | 4% | .00833 /.00333 |
| 01/01/01 - 12/31/01 | 12% | 6% | .010000 /.00500 |
* Applied to each month or fraction of a month that a tax or fee payment is overdue or a refund is owed.