GEN-16 – Penalties and Interest

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

The interest rate on all taxes collected or administered by the Department of Revenue is currently 12.25% and is effective until June 30, 2024. For installment payment agreements, the current interest rate is 13.25%.

Previously, from July 1, 2022 through June 30, 2023, the interest rate was 8%. The interest rate for installment payment agreements was 11%.    

References: Tenn. Code Ann. § 67-1-801; Tenn. Code Ann. § 47-14-102(7)

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