What penalty is incurred for failing to pay taxes owed by the due date?

The penalty for failing to pay taxes owed by the due date is 0.5% of the unpaid taxes for each month or part of a month that the tax remains unpaid. This penalty is applied to the total amount of taxes owed, making it a relatively manageable charge for taxpayers who may need additional time to settle their tax liabilities.

This rate accumulates month by month, which reinforces the importance of addressing tax obligations promptly. As such, even a small percentage can lead to significant penalties if taxes remain unpaid for an extended period. Understanding this penalty structure is crucial for taxpayers to avoid unnecessary additional charges when they do not pay their due taxes on time.