Skip to main content

Interest Rates

Title 32 V.S.A. § 3108 (Interest Rate) as most recently amended by Act 51 (2019) requires the Commissioner to set the interest rate no later than December 15th for the calculation of the interest on the underpayment and overpayment of tax liabilities for the upcoming calendar year. The annual rate for overpayments and underpayments is rounded up to the nearest quarter percent.

The average prime loan rate charged by banks (as determined by the Board of Governors of the Federal Reserve System) for the 12-month period beginning October 1, 2021 and ending September 30, 2022 was 3.96%. Rounding up to the nearest quarter of a percent, the annual rate for the overpayment and underpayment of tax for 2023 will be 4.0%.

This rate will be effective beginning January 1, 2023 and will apply to interest that accrues in calendar year 2023.

2023 Interest Rates Memo

Current Interest Rates

Year Overpayment Annual Rate Underpayment Annual Rate
2023 4.0% 4.0%

Interest Rates (1981-2020)

Year Annual Rate Overpayment Annual Rate Underpayment Annual Rate Memo
2022   3.25% 3.25% 2022 Interest Rates Memo
2021   4.0% 4.0% 2021 Interest Rates Memo
2020   5.5% 7.5% 2020 Interest Rates Memo
2019   4.75% 6.75% 2019 Interest Rates Memo
2018   4.0% 6.0% 2018 Interest Rates Memo
2017   3.6% 5.6% 2017 Interest Rates Memo
2016   3.6% 5.6% 2016 Interest Rates Memo
2015   3.6% 5.6%  
2014   3.6% 5.6%  
2013   3.6% 5.6%  
2012 4.8%      
2011 4.8%      
2010 4.8%      
2009 6.0%      
2008 9.6%      
2007 8.4%      
2006 6.0%      
2005 6.0%      
2004 6.0%      
2003 6.0%      
2002 8.4%      
2001 9.6%      
2000 8.4%      
1999 9.6%      
1998 9.6%      
1997 9.6%      
1996 9.6%      
1995 7.2%      
1994 6.0%      
1993 7.2%      
1992 9.6%      
1991 12.0%      
1990 12.0%      
1989 10.8%      
1988 9.6%      
1987 9.6%      
1986 12.0%      
1985 13.2%      
1984 12.0%      
1983 15.6%      
1982 12.0%      
Prior Years* 12.0%      

*Interest rates for 1981 and prior set by statute