Money Score
--

Analyze 3 calcs to unlock

0 of 3 analyzed

View your saved analyses

Recently used

Your recents will appear here

Related calculators

Remote Work Tax CalculatorEstimated Tax Underpayment Penalty Calculator
Browse all categories
Mortgage & Real EstateDebt & LoansInvestments & CryptoRetirement & SavingsTax & BusinessCareerReal EstateCost GuidesHome ImprovementLegal & BusinessAuto & VehicleEducationPetsImmigrationMilitary
HomeTax CalculatorsTax Extension Penalty Calculator

Tax Extension Penalty Calculator

Calculate IRS failure-to-pay penalties and interest charges for late tax payments. See how quickly penalties and interest accumulate.

Auto-updated May 27, 2026 · Verified daily against IRS, Fed & Treasury sources

Instant resultsNo signupVerified formula
Free · No signup · Verified
Tax Extension Penalty Calculator

Enter your numbers below

Assumptions· 2026

  • ·Extension (Form 4868) extends filing to Oct 15 — but not payment; tax due April 15
  • ·Failure-to-pay penalty: 0.5% per month on unpaid tax, max 25% (IRC §6651(a)(2))
  • ·Failure-to-file penalty: 5% per month on unpaid tax, max 25% — reduced to 4.5% if FTP also applies
  • ·Interest accrues at federal short-term rate + 3% (daily compounding) on unpaid balance
When this is wrong
  • ·Accuracy-related penalty: 20% of underpayment due to negligence or substantial understatement (IRC §6662)
  • ·Minimum failure-to-file penalty: greater of $510 or 100% of tax if return filed 60+ days late
  • ·State late filing/payment penalties — each state has separate penalty structure
  • ·First-time abatement (FTA) waiver: IRS may waive first-time penalty if prior 3-year compliance clean
Assumptions· 2026▾
  • ·Extension (Form 4868) extends filing to Oct 15 — but not payment; tax due April 15
  • ·Failure-to-pay penalty: 0.5% per month on unpaid tax, max 25% (IRC §6651(a)(2))
  • ·Failure-to-file penalty: 5% per month on unpaid tax, max 25% — reduced to 4.5% if FTP also applies
  • ·Interest accrues at federal short-term rate + 3% (daily compounding) on unpaid balance
When this is wrong
  • ·Accuracy-related penalty: 20% of underpayment due to negligence or substantial understatement (IRC §6662)
  • ·Minimum failure-to-file penalty: greater of $510 or 100% of tax if return filed 60+ days late
  • ·State late filing/payment penalties — each state has separate penalty structure
  • ·First-time abatement (FTA) waiver: IRS may waive first-time penalty if prior 3-year compliance clean
Real-world example: California W-2 employee estimating 2026 liability▾

Single filer in Los Angeles, $95,000 W-2 income, rents apartment, no dependents, contributes $7,000 to 401(k), standard deduction.

  • Gross W-2 income: $95,000
  • 401(k) pre-tax contribution: $7,000
  • Federal AGI: $88,000
  • Standard deduction (2026): $15,000 (single)
  • Federal taxable income: $73,000
  • California state rate (est.): 9.3%
Estimated total tax liability
~$22,400 (federal + CA state)

Takeaway: CA state tax alone adds ~$6,200 on this income — a 28% increase over the federal bill. Same income in Texas or Florida cuts total tax by roughly that amount. Use the calculator above with your W-2 box figures.

When this calculator is wrong▾
  • 2026 tax brackets reflect TCJA sunset adjustments

    Most TCJA provisions expired after 2025 unless extended. The 2026 standard deduction, brackets, and rates may differ from 2024-2025 values depending on Congressional action. This calculator uses current published IRS projections — verify against your actual filing year.

  • State and local taxes are calculated separately

    This calculator handles federal liability. State rates vary from 0% (no income tax states) to 13.3% (California top marginal). City taxes exist in NYC, Philadelphia, Detroit, and others — they are not included here.

    California State Tax Calculator
  • The AMT can override ordinary tax calculations

    Alternative Minimum Tax applies when certain deductions (ISO stock options, large SALT deductions pre-TCJA) reduce regular tax below a threshold. AMT exemptions were enhanced under TCJA — but exposure still occurs for high-income earners exercising stock options.

  • Estimated tax penalties are not modeled

    If you have significant non-withholding income (self-employment, investments, rental), underpaying quarterly estimates triggers a penalty. The IRS safe harbor is paying 100% of prior year liability (110% if prior year AGI exceeded $150K). This calculator does not compute penalty amounts.

  • Capital gains and qualified dividends use separate rate schedules

    Long-term capital gains are taxed at 0%, 15%, or 20% — not at ordinary income rates. Adding capital gains to your income can also push ordinary income into a higher bracket even when the gains themselves are taxed at preferential rates.

Related calculators

Remote Work Tax CalculatorEstimated Tax Underpayment Penalty Calculator
Your Results

Based on your inputs

Demo numbers · replace inputs to see yours
Total Penalties & Interest
$751positivenegative trend

4/day accrual

Original Due DateApril 15, 2024
Payment Date2024-10-15
Days Late183 days (7 months)
Unpaid Tax Amount$10,000
Failure-to-Pay Penalty$350 (3.50%)
Interest Charge$401 (8.0% annual)
Total Penalty + Interest$751
Total Amount Due$10,751
Daily Accumulation$4/day
Projected 90-Day Cost$347

Key Points

  • Penalties and interest accrue from the original due date (April 15), not the extension deadline
  • Failure-to-pay penalty caps at 25% but can reach higher with continued non-payment
  • Interest is compounded and accrues daily until full payment is received
  • Installment agreements reduce the penalty rate from 0.5% to 0.25% per month
  • Payment plans require immediate contact with the IRS to minimize additional penalties

Money Score: Analyze 3 calcs across rent, debt, and savings to unlock.

More actions
Embed
Saved
Money Score
--

Analyze 3 calcs to unlock

0 of 3 analyzed

View your saved analyses

Your next step

📊 Analyze 3+ calcs to unlock your Financial Picture dashboard (cross-analysis of all your numbers).

Continue with Estimated Tax Underpayment Penalty

0.5% of unpaid taxes per month (or part of month), up to 25% total. Reduced to 0.25%/month if you have an installment agreement.

Interest accrues daily at the federal rate + 3% (typically 6–9%). It compounds annually and accrues from the original due date.

Filing an extension (Form 4868) extends the deadline to file, but NOT the deadline to pay. Penalties and interest still accrue from the original date.

If you pay by the original due date (April 15 for most), no failure-to-pay penalty or interest accrues, even if you file on extension later.

Failure to file is 5 percent of unpaid taxes per month up to 25 percent total, much higher than the 0.5 percent per month failure-to-pay penalty. Always file on time or request an extension even if you cannot pay.

Form 4868 extends the filing deadline by 6 months, from April 15 to October 15 for most taxpayers. This extension is automatic when filed on time, but it does not extend the payment deadline.

Yes. The IRS may waive penalties for reasonable cause such as natural disasters, serious illness, or death in the family. First-time penalty abatement is also available for taxpayers with a clean compliance history.

The combined failure-to-file and failure-to-pay penalty is 5 percent per month for the first 5 months, then 0.5 percent monthly after that. On a $5,000 tax bill, filing 3 months late costs approximately $750 in penalties alone.

If you miss the April 15 extension deadline, you are subject to both failure-to-file and failure-to-pay penalties from the original due date. File as soon as possible to stop the more expensive failure-to-file penalty.

The failure-to-file penalty maxes out at 25 percent of unpaid taxes. The failure-to-pay penalty also caps at 25 percent. Combined with interest, total penalties can reach 50 percent or more of the original tax owed.

Failure-to-Pay Penalty = Unpaid Tax × 0.5% × Months Late

(Max 25%; reduced to 0.25%/month on installment plan)

Interest = Unpaid Tax × (Federal Rate + 3%) × Days Late / 365

(2024 federal rate ~8%, varies quarterly)

Published byJere Salmisto· Founder, CalcFiReviewed byCalcFi EditorialEditorial standardsMethodologyLast updated May 28, 2026

Primary sources & authoritative references

Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.

  • USA.gov — Money and consumer protection — U.S. General Services Administration (opens in new tab)

Found an error in a formula or source? Report it →

Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.