Question 1

How much is the IRS penalty for filing taxes late?

Accepted Answer

The failure-to-file penalty is 5% of your unpaid tax for each month or partial month your return is late, up to a maximum of 25%. If your return is more than 60 days late, a minimum penalty applies: the lesser of $525 (for returns required to be filed in 2026) or 100% of the unpaid tax. If you owe nothing or are due a refund, there is no late-filing penalty.

Question 2

What is the penalty for paying taxes late?

Accepted Answer

The failure-to-pay penalty is 0.5% of the unpaid tax per month or partial month, up to 25%. It drops to 0.25% per month while an approved IRS installment agreement is in place. When both the late-filing and late-payment penalties apply in the same month, the late-filing penalty is reduced to 4.5% so the combined charge is 5% per month.

Question 3

What interest rate does the IRS charge on unpaid taxes?

Accepted Answer

The IRS charges the federal short-term rate plus 3 percentage points, compounded daily, adjusted quarterly. For individuals in 2026, the rate is 7% in the first and third quarters and 6% in the second quarter. Interest accrues from the original due date until the balance is paid, and unlike penalties, it generally cannot be waived.

What does waiting cost?

Your estimated bill