Interest Rate on Overdue Taxes
Interest is charged on all overdue payroll taxes including:
- Unemployment Insurance
- Employment Training Tax
- State Disability Insurance
- Personal Income Tax withholdings
The interest rate is adjusted twice per year based on the short-term federal rates in January and July. The interest rate is based on the California Revenue and Taxation Code.
The California Unemployment Insurance Code (CUIC) does not allow us to waive or cancel interest.
Interest is compounded daily on:
- All unpaid tax.
- Interest.
- Certain penalties.
Use the following daily interest factors to calculate the interest on overdue amounts.
| Overdue Date | Interest Rate | Daily Interest Factor |
|---|---|---|
| 01/01/25 to 06/30/25 | 8% | 0.000219 |
| 07/01/24 to 12/31/24 | 8% | 0.000219 |
| 01/01/24 to 06/30/24 | 7% | 0.000191 |
| 07/01/23 to 12/31/23 | 7% | 0.000192 |
| 01/01/23 to 06/30/23 | 5% | 0.000137 |
| 07/01/22 to 12/31/22 | 3% | 0.000082 |
| 01/01/22 to 06/30/22 | 3% | 0.000082 |
Call our toll-free number 1-888-745-3886, or visit your local Employment Tax Office for more help.
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If you have questions, Contact Payroll Taxes. You can also contact the Taxpayer Assistance Center at 1-888-745-3886 or visit your local Employment Tax Office.