Title 11 — BankruptcyRelease 119-73
§511 Rate of interest on tax claims
Title 11 › Chapter CHAPTER 5— - CREDITORS, THE DEBTOR, AND THE ESTATE › Subchapter SUBCHAPTER I— - CREDITORS AND CLAIMS › § 511
Summary
When a bankruptcy rule says interest must be paid on a tax debt or on a tax-related administrative payment, the interest rate must match the rate set by the normal law that applies outside bankruptcy. If the tax is paid under a confirmed bankruptcy plan, use the interest rate that is in effect for the calendar month when the plan is confirmed.
Full Legal Text
Title 11, §511
Bankruptcy — Source: USLM XML via OLRC
(a)If any provision of this title requires the payment of interest on a tax claim or on an administrative expense tax, or the payment of interest to enable a creditor to receive the present value of the allowed amount of a tax claim, the rate of interest shall be the rate determined under applicable nonbankruptcy law.
(b)In the case of taxes paid under a confirmed plan under this title, the rate of interest shall be determined as of the calendar month in which the plan is confirmed.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such
Effective Date
, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an
Effective Date
of 2005 Amendment note under section 101 of this title.
Reference
Citations & Metadata
Citation
11 U.S.C. § 511
Title 11 — Bankruptcy
Last Updated
Apr 6, 2026
Release point: 119-73