California Raises Interest Rates on Tax Bills, Corporate Refunds

California is raising interest rates on taxpayers that underpay their income taxes and for corporations that receive refunds on overpayments.

Corporations, which have received no interest on overpayments since Jan. 1, 2021, will see 2% interest starting in 2023, according to the Franchise Tax Board. The interest rate for corporate tax overpayments has hovered between 0% and 2% since 2009.

• Interest rates for personal, corporate, and franchise taxpayers that owe tax because they underpay will increase to 5% from 3% starting Jan. 1, the board said in a memo released July 18.
• The board adjusts interest rates ...