Texas Tax Changes - January 2025

Texas General Administrative Provisions—Texas sets interest rates for 2025.

The Texas Comptroller of Public Accounts has announced that for the year 2025, the rate of interest on Texas delinquent taxes is 8.50% and the rate of interest on credits and refunds is 4.597%. The interest-owed rate for most taxes varies annually and is set at the prime rate, as published in the Wall Street Journal on the first business day of the year, plus 1%. Past due taxes are charged interest beginning 61 days after the due date. Filed refund claims accrue credit interest at either the treasury pool rate or prime rate plus 1%, whichever is less. For the year 2024, the interest rate on underpayments was 9.50%, and the interest rate on overpayments was 4.981%. (Texas Tax Publication 98-304 Interest Owed and Earned, 01/01/2025.)

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