field_block:node:page:title
Penalties and Interest for Individuals
field_block:node:page:body
Filing and paying your taxes late costs you money. Use this information to avoid costly penalties and interest.
You may ask us to abate (cancel) penalties if you have a reasonable cause. For details, see Penalty Abatement for Individuals.
field_block:node:page:field_paragraph
Different penalties may apply depending on your situation. The most common penalties are listed in this table.
| 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 details, 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, as listed in the table below.
| 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 60 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, whichever date is later.
|
| Penalty for Negligent or Intentional Disregard of the Law | 10% of any additional tax assessed that is due to negligence or intentional disregard. |
Note: 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.
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. Interest rates for recent years are listed in the table below.
| Year | 2024 | 2023 | 2021 - 2022 | 2019 - 2020 | 2017 - 2018 |
|---|
| Interest Rate | 8% | 5% | 3% | 5% | 4% |
How Interest Applies for Individuals
We charge and pay interest based on the type of tax return you file.
