The Economic Times

How much do 2026 tax penalties cost if you file late IRS interest rates and monthly fees explained

Missing the April 15 deadline in 2026 can cost you up to 25% in penalties alone. The 2026 tax penalties cost late filing starts at 5% per month on unpaid taxes. Even one day late can trigger charges. Interest begins immediately and compounds daily near 7%. Costs rise faster than most expect. If you dont file taxes in 2026, the IRS adds both penalties and interest together. Filing late is more expensive than paying late. Acting early reduces total tax debt and protects your finances from rapid escalation.