How are penalties and interest computed?

Penalties and interest apply to any deficient or delinquent payments. A penalty of 5 percent of the unpaid amount is added for each month (or part of the month) that a payment is delinquent or deficient, to a maximum of 25 percent. Interest is computed at the current rate of interest. 

The interest rate on all taxes collected or administered by the Department of Revenue is 8.75%, effective July 1, 2018 through June 30, 2019. The interest rate for installment payments is 11.75%, effective July 1, 2018 through June 30, 2019. 

The interest rate effective July 1, 2019, through June 30, 2020, will be 9.5%.The interest rate for installment payment agreements will be 12.5%.


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