Virginia Publishes Updated Interest Rates for Q4 2021

Paul Ogawa
September 13, 2021

The Virginia Department of Taxation recently published Tax Bulletin 21-8, which provides information on interest rates applicable to withholding tax underpayments and overpayments for the fourth quarter of 2021.

Virginia Code Section 58.1-15 provides that the applicable rates for both underpayments and overpayments will be 2% higher than the federal rates for the same payment conditions. Since the federal rates remain unchanged at 3% for the remainder of calendar year 2021, so will the Virginia state rates remain the same for the fourth quarter of 2021. Specifically, the rate for underpayments will remain at 5% while the rate for overpayments will also remain at 5%.

To review the interest rates outlined in Tax Bulletin 21-8, please click here to visit the Department of Taxation online.

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Paul Ogawa

Paul Ogawa is a Senior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.
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