Title 32 V.S.A. § 3108 (Establishment of Interest Rate) requires the Commissioner to set the interest rate no later than December 15 each year 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, 2022, and ending September 30, 2023, was 7.78%. Rounding up to the nearest quarter of a percent, the annual rate for the overpayment and underpayment of tax for 2024 will be 8.0%.
This rate will be effective beginning January 1, 2024, and will apply to interest that accrues in calendar year 2024.
Current Interest Rates
| Year | Overpayment Annual Rate | Underpayment Annual Rate | Memo |
|---|---|---|---|
| 2024 | 8.0% | 8.0% | 2024 Interest Rates Memo |
Interest Rates (2013-2023)
| Year | Overpayment Annual Rate | Underpayment Annual Rate | Memo |
|---|---|---|---|
| 2023 | 4.0% | 4.0% | 2023 Interest Rates 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% |
Interest Rates (1981-2012)
| Year | Annual Rate |
|---|---|
| 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