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.

Interest Due on Overdue Amounts Based on Date
Overdue Date Interest Rate Daily Interest Factor
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
07/01/21 to 12/31/21 3% 0.000082
01/01/21 to 06/30/21 3% 0.000082

Call our toll-free number 1-888-745-3886, or visit your local Employment Tax Office for more help.

e-Services for Business

Use e-Services for Business to manage your employer payroll tax account online.

Contact Us

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.