What is the penalty for late payment of taxes in Maryland?

In Maryland, the penalties for late payment of taxes can vary depending on the type of tax and the duration of the delay. Generally, if tax payments are not made by the due date, interest and penalties are assessed by the Comptroller of Maryland. The penalty for late payment is typically one percent of the unpaid tax amount for each month or part of a month that the tax remains unpaid, up to a maximum of twenty-five percent. In addition to the penalties for late payment, interest begins to accrue on the unpaid tax starting from the due date. The interest rate is determined and updated annually and is based on the prime rate. This means that the longer the tax remains unpaid, the more it will cost due to accumulating interest. If a taxpayer receives a notice regarding overdue tax, it is important to address the matter promptly to avoid further penalties and interest. Taxpayers also have the right to appeal certain decisions made by the Comptroller's Office, so it may be beneficial for taxpayers to familiarize themselves with their options. For the most accurate and updated information regarding tax penalties, interest rates, and payment options, taxpayers are encouraged to visit the official Maryland Comptroller website, where they can find comprehensive resources and potentially contact information for further assistance.