Previous and current interest rates on deficiencies, estimate penalties, overpayments, and refunds.

General information on payment plans for individuals and businesses; also called installment agreements.

Learn more | Report fraud ... The rate for corporation tax overpayments for the period will also remain unchanged at 0%. For more information on interest and estimate penalty rates.

For the period January 1, 2021 through June 30, 2021, the adjusted interest rate is 3%.[1] This is the rate compounded daily that accrues with respect to various state taxes including: personal income, corporate income and franchise tax.

assessment for the same tax year, interest is not charged on the additional tax · (to the extent of the overpayment) from the overpayment effective date to the · refund or transfer date, whichever the case may be. Currently, FTB follows

All of FTB’s payment options are described on our payment options page. Your FTB account balance is subject to accruing interest and applicable penalties until paid in full.

For details, see Interest. We use the federal short-term rate based on daily compounding interest to calculate the interest we charge and pay.

These links can help you determine the best time to call, check refund status, and FTB business areas to contact directly. ... For the period July 1, 2025, through December 31, 2025, the interest rate will be 7%. This is the rate compounded daily that accrues with respect to various state taxes, ...

Make my estimated tax payments (if required). ... This link will take you to an external website that FTB does not own or control. We are not responsible for the privacy practices or content of the external site.

Decrease from 5% to 3%. This is the rate compounded daily that accrues with respect to various state taxes including: ... The rate for corporation tax overpayments for the period will decrease from 2% to 0%. Visit our interest rates webpage ...

March 22, 2023 - Interest Accrual: Interest continues to accrue on your account even if you’re in an installment agreement. Lien: An installment agreement does not prevent the state from filing a notice of state tax lien against you in state or county records until your liability is paid in full. You have three options when it comes to getting a California FTB payment plan...

... 0.5% of the unpaid tax for each month or part of the month it’s unpaid not to exceed 40 months (monthly). For LLCs, the penalty is computed on the underpayment of annual tax, LLC fee, and non-consenting non-resident (NCNR) tax, if applicable. ... Visit Individuals due dates for the due dates.

The rate is set by the California Franchise Tax Board and adjusts twice each taxable year — it is 8% as of the first half of 2025. The FTB may waive penalties if they were incurred due to reasonable cause.

July 2, 2025 - Please note that setting up a payment plan is a separate process and assistance is not provided through MyFreeTaxes.org or through our in-person and virtual Volunteer Income Tax Assistance (VITA) free tax preparation sites. The IRS and FTB both charge a penalty for not filing by the tax deadline if you owe taxes. They also begin to charge interest on any unpaid taxes starting the day after the filing deadline.

Your balance will continue to accrue interest and penalties. We will extend your repayment period until you pay the balance in full. In all other ways, you’ll follow the original terms and conditions of the installment agreement. ... Unable to Manage Payment Plan or Request to Skip a Payment online, call us at 888-635-0494. ... This link will take you to an external website that FTB ...

Can't pay individual or business California (FTB) income taxes in full? Overview of FTB payment plans, how to apply, eligibility conditions, and more.

We will always ask you to immediately pay your tax liability (including interest and penalties) in full. We encourage you to · borrow from private sources to immediately pay your tax liability in full. If you are financially unable to pay the tax liability · in full, you may be eligible to make payments in installments over time.

For California Form 540, late filing and payment penalties accrue from the original due date. The Franchise Tax Board (FTB) typically bills penalties and interest after processing your return. Payments made via withholding and estimated taxes reduce your balance owed.

It can lead to hefty penalties and interest that pile up, affecting your business's financial health. Penalties kick in if you miss your due dates. The FTB doesn't mess around. They charge 25% of the tax amount due after any payments and credits.