Interest Rate

Interest is charged on all overdue (delinquent) taxes. This includes Unemployment Insurance, Employment Training Tax, State Disability Insurance, and Personal Income Tax withholdings.

The interest rate is based on the California Revenue and Taxation Code. The interest rate is adjusted twice a year based on the short-term federal rates in January and July. The California Unemployment Insurance Code does not allow us to waive or cancel interest.

Interest is compounded daily on:

  • All unpaid tax.
  • Interest.
  • Certain penalties.

Use the daily interest factors in this table to calculate the interest on overdue amounts.

Interest Due on Overdue Amounts Based on Date
Overdue Date Interest Rate Daily Interest Factor
07/01/20 to 12/31/20 5% 0.000137
01/01/20 to 06/30/20 5% 0.000137
07/01/19 to 12/31/19 6% 0.000164
01/01/19 to 06/30/19 5% 0.000137
07/01/18 to 12/31/18 4% 0.000110
01/01/18 to 06/30/18 4% 0.000110

For assistance, call our toll-free number 1-888-745-3886, or visit your local Employment Tax Office.