How the penalty works
The IRS charges a penalty on the amount you were short, for the days it was late. The rate is set by the IRS every three months.
It’s worked out for each due date on its own. Once you catch up, the penalty for that date stops growing.
Making it smaller
A late payment still counts. The sooner it reaches the IRS, the fewer days the penalty runs.
Many drivers catch up by adding the missed amount to their next payment. The next due date is January 15, 2027.
When there’s no penalty
If you owe less than $1,000 when you file, after any tax taken out of a job, there’s no penalty.
There’s also no penalty if you paid enough during the year. Enough means 90% of this year’s tax, or 100% of last year’s, whichever is less. Last year’s share is 110% if your income was over $150,000.
If you can’t pay it all in April
File your return on time anyway. The penalty for filing late is usually much bigger than the one for paying late.
The IRS offers payment plans for people who can’t pay in full. You can apply online at irs.gov/payments.
Figures for 2026, from IRS documents. Tax rules change, so check the year at the top.
Work out your own number
The free calculator shows how much of each payout to set aside for your year, with the math. No sign-up.
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