Signature Tax Event 2022 Deck FINAL | Page 11

SALT Underpayment Interest Rates

• Applicable to overdue personal income tax , corporate income tax and unpaid employer withholding tax

Interest on overpayments may not have the same rate structure

• As the federal interest rates continue to increase , so will interest rates charged by state and local taxing authorities that use the Applicable Federal Rates ( AFR ) as a component of their base rate

• Ohio interest rate - 3 % for 2022 and 5 % for 2023

• Ohio municipal interest rate - 5 % for 2022 and 7 % for 2023

• Ohio trust & estate - 0 % in 2022 and 2 % in 2023

• Kentucky interest rate – 5 % for 2022 and 8 % for 2023

• Indiana interest rates – 3 % for 2022 and 2 % for 2023

( Indiana rates based on the average investment yield on state money for the state ’ s previous fiscal year , rounded to the nearest whole number )