The IRS pays interest on refunds delayed beyond 45 days, but the rate is low and changes quarterly

When the IRS holds your refund longer than 45 days from the date you filed, it owes you interest on that money. The rate is set by federal law and recalculates every three months. For the current quarter, the rate is 8 percent annually — but the actual payment is usually much smaller because the delay is often only a few weeks or months, not a full year.

You do not have to request this interest or fill out a separate form. The IRS calculates it automatically and includes it with your refund check or deposit. The interest accrues daily from the 46th day after you filed until the IRS sends your money.

Key Takeaways

  • Interest begins accruing on day 46 after you file, but only if your refund is delayed that long.
  • The interest rate is set quarterly by the IRS and is currently 8 percent annually, though it changes based on federal short-term borrowing rates.
  • A typical delay of two to three months on a $2,000 refund generates roughly $25 to $40 in interest, not hundreds of dollars.
  • The IRS pays interest automatically — you receive it with your refund without having to claim it separately.
  • Interest is not taxable income and does not appear on your next year's tax return.

How the IRS calculates the interest amount

The calculation is straightforward: the IRS takes the refund amount, multiplies it by the quarterly interest rate, and divides by 365 days. Then it multiplies by the number of days the refund was actually delayed past day 45.

For example, if you are owed $3,000 and the IRS delays it by 90 days total, with the interest rate at 8 percent annually, you would receive roughly $59 in interest. If the delay is only 30 days, you receive nothing — the threshold is 45 days, not 30.

The IRS does not round up or pay interest on partial days. It counts from the filing date (or the due date if you filed early) through the date it actually sends your refund.

When the 45-day clock starts and stops

The clock starts on the date you file your return, not the date you mail it or the date the IRS receives it. If you file electronically on April 10, the 45 days begin April 10. If you file on paper and mail it April 10 but the IRS does not receive it until April 15, the clock still started April 10.

The clock stops on the date the IRS actually sends your refund — either the date it mails your check or the date it deposits money into your bank account. If you chose direct deposit, that is usually faster than a paper check, so your interest accrual period is shorter.

If you file a return claiming a refund and then amend it later with Form 1040-X, the clock resets. The IRS treats the amended return as a new filing, so the 45-day period starts over from the date you file the amendment.

Why refunds get delayed past 45 days

Most refunds arrive within 21 days of filing electronically, so you never see interest. Delays past 45 days usually happen because the IRS is verifying information on your return — checking that your income matches W-2s or 1099s, confirming dependents, or reviewing deductions that look unusual for your income level.

A delay can also occur if you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit. The IRS is required by law to hold these refunds until mid-February, even if you file in January. That delay does not trigger interest because it is a statutory hold, not a processing delay.

Identity theft flags, missing information on your return, or a mismatch between your filing and prior-year returns can also push you past 45 days. In those cases, the IRS will contact you by mail asking for documents or clarification.

The quarterly interest rate and how it changes

The IRS sets the interest rate each quarter based on the federal short-term rate plus 3 percentage points. The rate is published in the Federal Register and takes effect on the first day of each quarter: January 1, April 1, July 1, and October 1.

The rate has varied widely over time. In 2022 and 2023, it climbed to 8 percent as federal rates rose. In 2020 and 2021, it was as low as 3 percent. You can find the current and historical rates on the IRS website under "Interest Rates" in their tax professional section.

If your refund straddles two quarters — for example, it is delayed from March into April — the IRS applies the old rate through March 31 and the new rate starting April 1. The calculation is done separately for each period.

Interest on refunds from amended returns and prior years

If you file an amended return (Form 1040-X) and are owed a refund, the same 45-day rule applies. The clock starts when you file the amendment, not when you filed the original return. Interest accrues if the amended refund takes longer than 45 days to arrive.

If you are claiming a refund for a prior tax year — for example, filing a 2021 return in 2024 — the IRS still owes interest if processing takes longer than 45 days. However, the interest rate used is the rate that was in effect during the quarter when you filed that return, not the current rate.

What happens if the IRS owes you interest but does not pay it

In practice, this is rare. The IRS calculates interest automatically and includes it with your refund. You will see it listed separately on your refund check or in the deposit details if you chose direct deposit.

If you believe your refund was delayed more than 45 days and you did not receive interest, you can contact the IRS at 1-800-829-1040 to ask them to review the calculation. Have your filing date and the date you received your refund ready. The IRS can recalculate and send you the difference if an error was made.

Interest on delayed refunds is not something you can claim on a future tax return or request as a separate payment. It comes with your refund or not at all.

Frequently Asked Questions

Is the interest the IRS pays on delayed refunds taxable?

No. Interest paid by the IRS on a delayed refund is not taxable income. You do not report it on your next year's tax return, and it does not affect your tax liability. The IRS treats it as a correction to your original refund, not as new income.

Can I get interest if my refund was delayed but I did not file electronically?

Yes. The 45-day rule applies whether you file electronically or by mail. The clock starts on your filing date, not the date the IRS receives your return. If processing takes longer than 45 days from the date you filed, you are owed interest.

What if I filed early but the IRS did not process my return until after the April 15 deadline?

The 45-day clock still starts on your filing date, not April 15. If you filed in February and received your refund in June, the IRS counts the days from February through June. You would be owed interest for the days past 45.

Does the IRS pay interest on refunds held for the Earned Income Tax Credit?

No. The IRS is required by law to hold refunds that include the EITC or Additional Child Tax Credit until mid-February, regardless of when you file. This statutory hold does not trigger interest because it is not a processing delay — it is a legal requirement.

How do I know if my refund was delayed past 45 days?

You can check the status of your refund using the IRS "Where's My Refund?" tool on IRS.gov. It shows your filing date and the date your refund was sent. Count the days between those two dates. If it is more than 45 days, you should have received interest with your refund.