How Much Is the Tax Penalty for Filing Late?

For most individual income tax returns, the late-filing (“failure-to-file”) penalty is 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax.

If the return is more than 60 days late, a minimum late-filing penalty applies. For most individual and corporate income tax returns (such as Forms 1040 and 1120), the minimum late-filing penalty is the lesser of:

• A flat dollar amount set by the IRS for the year, or
• 100% of the unpaid tax shown on the return.

For returns with a due date in 2025, the minimum late-filing penalty is $510 or 100% of the unpaid tax, whichever is less. For returns with a due date after December 31, 2025 (for example, a 2025 Form 1040 due April 15, 2026), the minimum penalty is $525 or 100% of the unpaid tax, whichever is less. These flat-dollar minimum amounts are indexed periodically for inflation and may change in future tax years

If both the late-filing penalty and the late-payment (“failure-to-pay”) penalty apply for the same month, the late-filing penalty is reduced by the amount of the late-payment penalty for that month. In practice, this usually means a 4.5% per month late-filing penalty and a 0.5% per month late-payment penalty, for a combined total of 5% per month for up to five months.

If no tax is due, the usual late-filing penalty is generally zero, because it is calculated as a percentage of unpaid tax. However, you may still need to file to claim a refund or to start the statute of limitations, and different late-filing penalty rules apply to some business and information returns (such as partnership and S corporation returns).

Penalty relief may be available if you had reasonable cause and did not willfully neglect to file or pay, or if you qualify for other administrative relief, such as the IRS “first-time abate” policy.

State law note

State late-filing penalties and interest rules are administered at the state level and may differ significantly from the federal rules described above. The controlling authority is the applicable state revenue department or tax agency, so taxpayers should consult that agency’s guidance or a tax professional for state-specific rules.

Sources

IRS — Failure to file penalty 

IRS — Topic no. 653, IRS notices and bills, penalties and interest charges 

U.S. Code — 26 U.S.C. § 6651 

IRS — Failure to pay penalty 

IRS — Penalty relief 

IRS — If taxpayers missed the deadline to file a federal tax return, the IRS can help 

This information provided does not, and is not intended to, constitute legal advice.