Florida Tax Interest Rate Set at 12% for Late Payments Through December 2025

If your business owes taxes to the Florida Department of Revenue (FDOR), you could face a hefty interest charge. According to TIP #25ADM-01, Florida’s interest rate on tax underpayments and late payments remains at 12% annually from July 1 through December 31, 2025. This elevated rate affects sales tax, corporate income tax, reemployment tax, and virtually every state-administered tax.

Whether you’re filing late, underpaid during an audit, or entering into a settlement or protest agreement, the interest can pile up quickly. Here’s what Florida businesses need to know.

What Is the Florida Tax Interest Rate?

Florida law requires the Department of Revenue to adjust its statutory interest rate for delinquent tax payments twice per year—on January 1 and July 1. These changes are based on market conditions, including federal short-term interest rates and economic activity.

Effective July 1, 2025 through December 31, 2025, the interest rate remains:

• 12% annual rate
• 1% per month

This applies to all taxes administered by FDOR, including:

• Sales and use tax
• Corporate income tax
• Communication services tax
• Documentary stamp tax
• Fuel tax
• Gross receipts tax
• Insurance premium tax
• Reemployment tax

Why Is 12% So High?

The interest rate is driven by market conditions and calculated per Section 213.235, Florida Statutes, which ties the interest to the federal short-term rate plus a statutory spread. The goal is to incentivize timely compliance and reflect the cost to the state of unpaid liabilities.

Historically, Florida’s interest rate hovered between 6%–9%, but recent inflation and rising federal rates have pushed it significantly higher.

How Much Could This Cost You? (Examples)

Example 1: Late Sales Tax Payment

You forget to file your March 2025 sales tax return and pay $10,000 two months late.

Interest: $10,000 × 1% × 2 months = $200 interest

Example 2: Underpayment Found in Audit

During a 2025 audit, the FDOR finds your business underpaid sales tax by $75,000, and it’s been 9 months since the original due date.

Interest: $75,000 × 1% × 9 = $6,750 interest

Example 3: Voluntary Disclosure Agreement

You voluntarily disclose an error for unpaid reemployment taxes totaling $5,000 from one year ago.

Interest: $5,000 × 12% = $600 interest

Who Pays Interest and When?

Interest is imposed on:

• Late returns
• Partial payments
• Deficiencies uncovered in audit
• Settlements and negotiated liabilities
• Final assessments even if protested

Unlike penalties, interest is never waived unless there’s a clear Department error.

Can You Avoid or Reduce Interest?

While interest is almost never forgiven, you can:

• Avoid interest entirely by filing and paying on time
• Request a payment plan to stop additional accrual (though interest continues until full payment)
• Settle early if under audit to minimize how long interest accrues
• File accurate and timely returns even if you can’t pay — you’ll avoid late-filing penalties

FDOR Interest Rate History (Quick Snapshot)

Stay Informed on Florida Tax Policy

Subscribe to The SALTy Orange, our Florida state and local tax newsletter, or visit MoffaTaxLaw.com for updates on sales tax audits, interest rates, penalty trends, and more.