What is the penalty for late tax payment in New Jersey?

In New Jersey, if an individual or business fails to pay their taxes on time, they may be subject to penalties and interest. The New Jersey Division of Taxation typically imposes a late payment penalty of five percent of the unpaid tax amount for payments that are received after the due date. This penalty is applied if the tax is not paid within the first month after the due date. After the first month, an additional penalty of one percent of the unpaid tax is imposed for each additional month or part of a month that the tax remains unpaid, up to a maximum of twenty-five percent of the total amount due. In addition to penalties, interest on the unpaid tax will accrue from the due date until the tax is paid in full. The interest rate is subject to change and is determined quarterly, so it is advisable to check the current interest rate on the New Jersey Division of Taxation website for the most accurate information. It is important for taxpayers to be aware of these potential penalties and to pay their taxes promptly to avoid unnecessary costs. For further information, the New Jersey Division of Taxation website offers resources and contact details.