MA Lowers Interest Rates for First Quarter 2025
The Massachusetts Department of Revenue (DOR) has announced the interest rates for the first quarter of 2025, which are 1% lower than the rates for the fourth quarter of 2024. The 2025 first quarter interest rates are 6% simple interest for tax overpayments (previously, 7%) and 8% compounded daily for tax underpayments (previously, 9%). The interest rate on overpayments is the federal short-term rate determined under IRC §6621(b), as amended and in effect for the tax year, plus two percentage points, simple interest. The interest rate for underpayments is the federal short-term rate plus four percentage points, compounded daily. (Massachusetts Technical Information Release No. 24-17, 12/03/2024.)