Skip to main content

An Official Vermont Government Website

Vermont State Logo

Interest Rates

Title 32 V.S.A. § 3108 (Establishment of interest rates) as most recently amended by Act 175 (2020) requires the Commissioner to set rates no later than December 15th for the calculation of interest on underpayment and overpayment of tax liabilities for the upcoming calendar year.

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, 2019 and ending September 30, 2020 was 3.94%. Rounding up to the nearest quarter of a percent, the annual rate for overpayment of tax is 4.0%. Similarly, the annual interest rate for underpayment of tax will be 4.0%.

2021 Interest Rates Memo

Current Interest Rates

Year Overpayment Annual Rate Underpayment Annual Rate
2021 4.0% 4.0%

Interest Rates (1981-2020)

Year Annual Rate Overpayment Annual Rate Underpayment Annual Rate 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