The IRS adds interest to refunds delayed beyond 45 days
If the IRS takes longer than 45 days to send your refund after you file, it must pay you interest on the amount owed. This is federal law, not a choice the IRS makes year to year. The interest rate changes quarterly and is set by the IRS based on the federal short-term rate plus 3 percentage points.
You do not have to do anything to receive this interest — it is added automatically if your refund is late. The IRS calculates it from the date you filed (or the tax important date, whichever is later) until the date your refund is issued. You will see the interest amount listed separately on the check or direct deposit, or noted in a letter the IRS sends with your refund.
The interest rate itself is modest — typically between 8 and 10 percent annually — but because refunds are usually issued within weeks rather than months, the actual interest you receive is often just a few dollars. The longer the delay, the more interest accrues.
Key Takeaways
- The IRS must pay interest on refunds delayed more than 45 days after you file, calculated from your filing date or the tax important date, whichever comes later.
- The interest rate is set by the IRS each quarter and typically ranges between 8 and 10 percent annually, though the exact rate changes throughout the year.
- You receive the interest automatically — no claim or action is needed on your part.
- Most refunds arrive within 21 days, so most filers receive no interest because the 45-day threshold is not reached.
When the 45-day clock starts
The IRS counts the 45 days from the later of two dates: the date you filed your return, or April 15 of that tax year (the official important date). If you file on March 1, the clock starts March 1. If you file on May 10, the clock still starts April 15, because that is the legal important date.
This matters because it means filing early does not necessarily start the interest clock earlier — the tax important date is the floor. If you file in January and the IRS does not issue your refund until late June, interest runs from April 15, not January.
How the interest rate is determined
The IRS publishes a new interest rate every three months. The rate is the federal short-term rate (set by the U.S. Treasury) plus 3 percentage points. Because the federal rate changes, the IRS rate changes with it.
You can find the current and past rates on the IRS website under "Interest Rates." The rate that applies to your refund is the one in effect during the quarter in which your refund is issued, not the rate when you filed. If your refund is issued in July, you receive the rate that was set for the second quarter (April through June).
How much interest you actually receive
The interest is calculated daily on the refund amount. If you are owed $1,200 and the rate is 8 percent annually, the IRS divides 8 percent by 365 days to get the daily rate, then multiplies that by the number of days your refund was delayed. A 60-day delay at 8 percent on $1,200 would earn roughly $19 in interest.
Most refunds arrive within 21 days, so most filers never reach the 45-day threshold. The IRS typically issues refunds faster during the early filing season (January and February) and slower during peak season (March through May). If you file late in the season or your return requires review, delays are more common.
Why refunds get delayed past 45 days
The most common reason is that your return is selected for review. The IRS may verify income, deductions, or credits before releasing your refund. This review can take weeks or months depending on what is being checked and how busy the IRS is.
Other delays happen when you claim certain credits like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit. By law, the IRS must hold these refunds until mid-February, even if your return is complete and correct. This is a compliance measure, not a processing delay, but it still triggers interest if the total time exceeds 45 days.
Errors on your return — a mismatched Social Security number, a missing signature, or an inconsistency with documents the IRS already has — also cause delays. The IRS will contact you to fix the problem, which adds time.
What happens if you do not receive the interest
Interest is paid automatically, so you should see it on your check stub or in your bank deposit. If your refund was delayed past 45 days and you do not see interest listed, you can contact the IRS to ask about it. Keep your filing confirmation and any correspondence from the IRS showing when your return was processed.
You cannot claim this interest on a future tax return — it is not income you report. It is straightforward a payment the IRS owes you for the delay. If you believe the IRS owes you interest and did not pay it, you can file Form 843 (Claim for Refund and Request for Abatement) to request it, though this is rare because the IRS system is usually accurate.
Interest on refunds issued by check versus direct deposit
The interest calculation is the same whether your refund arrives by check or direct deposit. The only difference is timing: a direct deposit typically clears within one to two business days of being issued, while a check takes longer to arrive and clear. The IRS counts the refund as issued on the date it sends the payment, not the date you receive it.
If you are waiting for a refund and want to know whether you will receive interest, you can check the status using the IRS "Where's My Refund?" tool. It shows the expected issue date. If that date is more than 45 days after you filed, you will receive interest.
Frequently Asked Questions
Do I have to pay taxes on the interest I receive from my refund?
No. Interest paid by the IRS on a delayed refund is not taxable income. You do not report it on your next tax return, and the IRS does not send you a Form 1099 for it. It is compensation for the IRS's delay, not income you earned.
What if I filed an amended return — does the 45-day clock restart?
Yes. When you file an amended return (Form 1040-X), the 45-day period starts over from the date you file the amendment. Interest runs from that new date, not from your original filing date. This is one reason amended returns can take longer to process overall.
Can I get interest if my refund was delayed because I made a mistake on my return?
Yes. The IRS still owes you interest if the refund is delayed more than 45 days, regardless of the reason for the delay. Even if the delay was caused by an error you made that the IRS had to correct, you still receive interest once the 45-day mark passes.
What if the IRS issued my refund but I have not received it yet?
The IRS counts the refund as issued on the date they send it, not the date you receive it. Interest stops accruing on the issue date. If you are waiting for a check to arrive, the interest has already been calculated and included. If the check is lost in the mail, contact the IRS and they can issue a replacement.
Is the interest rate the same every year?
No. The rate changes quarterly based on the federal short-term rate. It can be higher one quarter and lower the next. You can check past and current rates on the IRS website if you want to know what rate applied to your specific refund.