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Penalties and Interest for Individuals
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Filing and paying your taxes late costs you money. The Minnesota Department of Revenue may assess a penalty if you intentionally file a false or fraudulent return to claim a refundable credit. The penalty is equal to 50% of the fraudulently claimed refund plus 50% of any understated tax. For more information, see Income Tax Credits and Property Tax Refund.
Note: You may ask us to cancel or reduce penalties, additional tax charges, and interest for late filing or payment if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. For details, see Penalty Abatement for Individuals.
You should pay your tax by the due date unless you are financially unable to make the payment.
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Use the following information to avoid costly penalties and interest.
| Type of Penalty |
How can I avoid this penalty? |
|---|
| Late filing |
File your returns by October 15. |
| Late payment |
- Pay your tax in full by April 15 even if you are not filing your return by April 15.
- If you file your return by October 15, pay at least 90% of the tax by April 15 and pay the remaining tax when you file your return.
|
| Underpayment of Estimated Tax |
Make quarterly estimated tax payments when required. For more information, see Estimated Tax for Individuals. |
| Extended Delinquency for Missing Returns |
If you receive a Request for Missing Return letter, respond as instructed within 30 days. |
| Late Payment for Tax Assessments |
If you receive a Tax Order letter, respond as instructed within 60 days. |
Penalty costs are determined based on the type of penalty.
| Type of penalty |
How much does this penalty cost? |
|---|
| Late Filing |
5% of tax not paid by October 15. |
| Late Payment |
- 4% of tax not paid by April 15.
- An additional 5% of the tax not paid within 180 days after filing your return or April 15, whichever date is later.
|
| Underpayment of Estimated Tax |
Complete Schedule M15, Underpayment of Estimated Income Tax, to determine your penalty. |
| Extended Delinquency for Missing Returns |
5% of the tax not paid prior to the request or $100 (whichever is more). |
| Late Payment for Tax Assessments |
- 4% of the tax not paid within 30 days of the assessment date or within 60 days after resolution of an appeal.
- An additional 5% of the tax not paid within 180 days of the assessment date or within 180 days after resolution of an appeal.
|
| Penalty for Negligent or Intentional Disregard of the Law |
10% of any additional tax assessed that is due to negligence or intentional disregard. |
We charge interest on tax and penalties from the time the debt is past due until it is paid in full. Interest rates may change annually. The following table shows interest rates for recent years.
| Year |
2021 |
2020 - 2019 |
2017 - 2018 |
2010 - 2016 |
|---|
| Interest Rate |
3% |
5% |
4% |
3% |
