How the late-filing penalty works
The failure-to-file penalty is 5% of your unpaid tax for each month or part of a month your return is late, up to 25%. Part of a month counts as a whole month. So a return filed one day late already owes a full month's penalty.
In months when the late-payment penalty also applies, the filing penalty drops to 4.5%. The two together still come to 5% a month. So if the tax stays unpaid the whole time, the filing penalty tops out at 22.5% of it after five months. The late-payment penalty keeps adding 0.5% a month, up to its own 25% cap.
The 60-day minimum
If your return is more than 60 days late, a minimum penalty applies. It's the smaller of 100% of the unpaid tax or a fixed amount based on when the return was due:
- $525 for returns due in 2026
- $510 for returns due in 2025
- $485 for returns due in 2024
- $450 for returns due in 2023
- $435 for returns due in 2020–2022
So even a small balance can draw an outsized penalty once you pass day 60. The calculator applies the right minimum for your year.
A worked example
Say you owed $10,000 on your 2023 return, which was due April 15, 2024. You filed and paid in full a year late, on April 15, 2025. Here's what the calculator shows:
- Late-filing penalty: $2,250.00, which is 4.5% a month for five months
- Late-payment penalty: $600.00, which is 0.5% a month for 12 months
- Interest: $979.97, on the tax and the late-filing penalty
- Total: $13,829.97
The filing penalty is almost four times the payment penalty. That's why filing on time matters most. Open this example in the calculator.
No tax owed? Mind your refund
For individuals, the penalty is a percentage of unpaid tax. If you don't owe anything, there's no late-filing penalty. But if you're due a refund, don't wait too long. A refund generally has to be claimed within 3 years, or it's lost.
File even if you can't pay
The late-filing rate is ten times the late-payment rate: 5% a month versus 0.5%. So file on time and pay what you can. An IRS payment plan can cover the rest, and the payment plan calculator shows what it costs. Need more time to file? An extension moves the filing deadline, not the payment deadline. The extension penalty calculator covers that case.
Getting it removed
If your prior three years are clean, the IRS's First Time Abate waiver can remove late-filing and late-payment penalties. Interest on a removed penalty goes with it, but interest on the tax itself stays. Filing for an S corporation or partnership? Those returns get a per-owner penalty instead, so use the S corp and partnership calculator.
Questions people ask
How much is the penalty for filing taxes late?
It's 5% of your unpaid tax for each month or part of a month, up to 25%. It drops to 4.5% in months when the late-payment penalty also applies. If the return is more than 60 days late, a minimum applies: the smaller of $525 (for returns due in 2026) or 100% of the unpaid tax.
Is there a penalty for filing late if I don't owe anything?
Not for individuals. No tax owed means no late-filing penalty. But you generally have 3 years to claim a refund, or you lose it.
Does an extension stop the late-filing penalty?
Yes, if you file by the extended deadline. If you file after it, the penalty is figured from the extended due date. An extension never gives you more time to pay.
Can I get the late-filing penalty removed?
Often. First-time abatement removes it if your prior three years are clean. If that doesn't fit, you can ask for reasonable cause relief, such as serious illness or a disaster, backed up with documentation.