Delaware Tax Penalties & Interest
Delaware imposes penalties and interest on taxpayers who fail to file or pay their state income taxes on time. These charges are designed to encourage timely compliance with tax obligations.
Penalties for Late Filing
- A late filing penalty is assessed if a taxpayer does not file their Delaware state tax return by the due date.
- The penalty is typically 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25%.
- This penalty applies whether or not the taxpayer owes tax.
Penalties for Late Payment
- A late payment penalty is charged if the taxpayer does not pay the full amount of tax owed by the due date.
- The penalty is 0.5% of the unpaid tax for each month or part of a month, up to a maximum of 25%.
- These penalties are in addition to interest charges.
Interest on Unpaid Taxes
- Interest is charged on any unpaid tax from the due date of the return until the date of payment.
- The interest rate is determined by the Delaware Division of Revenue and is typically based on the federal short-term rate plus 3 percentage points.
- Interest accrues daily and is compounded monthly.
How to Avoid Penalties and Interest
- File your Delaware state tax return by the due date (typically April 15, unless extended).
- Pay any tax owed by the due date, or request an extension if needed.
- Use Online Taxes (OLT) software to ensure accurate filing and timely submission.
Source:
Form PIT-RES Instructions
Form PIT-NON Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.