Missouri has doubled their interest rate on unpaid taxes for 2023 to 6%, up from 3% in 2022.
The interest rate changes for each calendar year are set by October 22 of the prior year, and the rate is based on the “adjusted prime rate charged by banks(1).” The interest rate is applied to unpaid taxes on a per-diem bases and is not compounded.
This is not the first time the interest rate on unpaid taxes has risen to 6% in Missouri—in 2008 and prior, the interest rate hit 6% and higher (up to 8%, 9%, and 10%) multiple times. So, it’s safe to say that this 6% interest rate likely won’t be permanent in the state.
But for 2023, this 6% interest rate applies to all taxes administered by the Missouri Department of Revenue. So, taxpayers should be aware of their tax filing and payment due dates for each tax type they file in Missouri, from income taxes to payroll taxes to sales and use taxes, among others, as interest is generally not waived by the state in the event taxes are paid late.
For further clarification please contact our team here.
Citations:
1. Mo. Rev. Stat. § 32.065 (https://revisor.mo.gov/main/OneSection.aspx?section=32.065)