Credit and debit interest rate change on 29 August.
IRD regularly reviews rates to ensure they align with current market interest rates. As of August the 29th the interest rate on overpaid (credit interest) and underpaid (debit interest) tax will change.
The new rates are:
- debit interest 10.91% (up from 10.39%)
- credit interest 4.67% (up from 3.53%)
When interest starts:
If you’ve underpaid tax, interest:
- starts on the day after the original due date for the amount owing, or
- stops on the day the overdue balance (including interest) gets paid in full.
If you need to file a tax return to get a refund of your overpayment, interest starts on the latest of the:
- original due date
- day after the payment that generates the refund (that’s when the credit becomes available)
- date you filed your return.
To see what interest is applied to, click here
