Interest on Underpayment of Pennsylvania Taxes

HTML Version Copyright 1995-2017 Daniel B. Evans. All rights reserved.


(Current through December 2017)

Under sections 806 and 806.1 of the Fiscal Code (72 P.S. §§ 806 and 806.1), all underpayments of tax which became due and payable to the Commonwealth of Pennsylvania on or after January 1, 1982, bear interest at the same rate established under section 6621(a)(2) of the Internal Revenue Code. However, the Pennsylvania interest is simple interest (and not compounded like federal interest) and the Pennsylvania rates are adjusted annually, and not quarterly.

These same rates apply to overpayments of tax under Article III of the Tax Reform Code of 1971, but all other overpayments of tax bear interest at a rate that is two percentage points lower.

The following is a table of the rates that have applied since January 1, 1982, expressed both as an annual rate and as a daily factor. To calculate interest for X days, multiply the daily factor by X and the tax underpaid. (See also, 61 Pa.Code 4.2.)

YearUnderpayment
Annual Rate
Underpayment
Daily Factor
Authority
198220%0.000548
198316%0.000438
198411%0.000301
198513%0.000356
198610%0.000274
19879%0.00024716 Pa.B. 4908
198811%0.00030117 Pa.B. 5286
198911%0.00030118 Pa.B. 5680
199011%0.00030119 Pa.B. 5081
199111%0.00030120 Pa.B. 5870
19929%0.00024721 Pa.B. 6012
19937%0.00019222 Pa.B. 6142
19947%0.00019224 Pa.B. 81
19959%0.00024724 Pa.B. 6486
19969%0.00024725 Pa.B. 5788
19979%0.00024726 Pa.B. 6224
19989%0.00024727 Pa.B. 6866
19997%0.00019228 Pa.B. 6351
20008%0.00021829 Pa.B. 6377
20019%0.00024730 Pa.B. 6494
20026%0.00016431 Pa.B. 6990
20035%0.00013732 Pa.B. 6220
20044%0.00011034 Pa.B 448
20055%0.00013735 Pa.B 78
20067%0.00019235 Pa.B 7067
20078%0.00021836 Pa.B 8021
20087%0.00019237 Pa.B 6970
20095%0.00013739 Pa.B 103
20104%0.00011039 Pa.B. 7256
20113%0.00008240 Pa.B. 7443
20123%0.00008241 Pa.B. 7041
20133%0.00008242 Pa.B. 7775
20143%0.00008243 Pa.B 7602
20153%0.00008244 Pa.B 8063
20163%0.00008246 Pa.B. 297
20174%0.00011046 Pa.B. 8108
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