IRS penalty rates for 2027: every figure for tax year 2026 returns
Short answer
IRS penalty rates for 2027 keep the same percentages: 5% a month for filing late and 0.5% a month for paying late, each capped at 25%. The main new figure is the minimum late filing penalty for returns required to be filed in 2027 and more than 60 days late: $535 or 100% of the tax due, whichever is less.
- 01Failure-to-file rate
- 5% of unpaid tax per month, max 25%
- 02Minimum for returns due in 2027 filed over 60 days late
- $535 or 100% of the tax, whichever is less
- 03Failure-to-pay rate
- 0.5% per month; 0.25% on a payment plan; 1% after a levy notice
- 04Underpayment interest, Oct. to Dec. 2026
- 7%
- 05Jan. to March 2027 interest rate
- Not yet announced; usually released in late November
- 06Tax year 2026 return due date
- Thursday, April 15, 2027
What are the IRS penalty rates for 2027?
The IRS penalty rates for 2027 are the percentages set in the tax code, which do not change year to year, plus a small set of dollar amounts the IRS adjusts for inflation each fall. For individuals filing tax year 2026 returns, due Thursday, April 15, 2027, the figures below are the ones that matter.
The percentage rates come from the IRS pages on the failure-to-file penalty and the failure-to-pay penalty. The $535 minimum comes from Revenue Procedure 2025-32, published in Internal Revenue Bulletin 2025-45, which sets inflation-adjusted amounts for tax year 2026.
What is the minimum late filing penalty for 2027?
For any income tax return required to be filed in 2027 that is filed more than 60 days after its due date (counting extensions), the late filing penalty is at least $535 or 100% of the tax required to be shown on the return, whichever is less (Rev. Proc. 2025-32). The percentage-based penalty still applies if it is larger.
| Return due in | Minimum if more than 60 days late | Source |
|---|---|---|
| 2023 | $450 | IRS failure-to-file penalty page |
| 2024 | $485 | IRS failure-to-file penalty page |
| 2025 | $510 | IRS failure-to-file penalty page |
| 2026 | $525 | IRS failure-to-file penalty page |
| 2027 | $535 | Rev. Proc. 2025-32 |
| 2028 | Not yet announced | Expected in the fall 2026 inflation adjustments |
The minimum mostly hurts people with small balances. If you owe $600 and file your 2026 return in August 2027 without an extension, the percentage penalty would be about $108, but the minimum pushes it to $535. If you owe only $300, the penalty is capped at the $300 of tax.
How the 2027 penalties add up: a worked example
Take a tax year 2026 balance of $3,000, no extension, and a return filed with full payment on August 1, 2027. That is 3 full months and part of a fourth after April 15, so four months count for both penalties.
| Item | Calculation | Amount |
|---|---|---|
| Failure-to-pay penalty | 0.5% x 4 months x $3,000 | $60 |
| Failure-to-file penalty | (5% minus 0.5%) x 4 months x $3,000 | $540 |
| Minimum check | Greater of $540 and the $535 minimum | $540 |
| Total penalties | Before interest | $600 |
The late filing penalty is reduced by the late payment penalty for months when both apply, which is why 4.5% rather than 5% is used. Interest at the quarterly rate is added on top. Filing on time, even without the money, would have avoided the $540 entirely and left only the $60 plus interest. Our IRS penalty calculator runs the same math for your numbers.
Did IRS penalty rates change for 2027?
The percentage rates did not change. The 5% and 0.5% monthly rates, the 25% caps and the 0.25% and 1% adjusted payment rates are written into the law and have not been amended for 2027. What changed are the inflation-adjusted dollar amounts and, more importantly, how penalty relief works.
Other inflation-adjusted amounts for returns due in 2027
- Late partnership and S corporation returns (sections 6698 and 6699): the base amount is $260 for returns required to be filed in 2027.
- Exempt organization late return penalty (section 6652(c)): $25 a day up to $13,000, or $130 a day up to $66,500 for organizations with gross receipts over $1,339,500.
- Seriously delinquent tax debt for passport certification: $66,000 for 2026. The 2027 threshold is not yet announced.
Is there an IRS new penalty in 2027? The automatic relief change
There is no new penalty for individuals in 2027, but there is a new form of relief. On July 8, 2026 the IRS announced the Automatic Exemption from Penalty (IR-2026-83). If your record passes the compliance history test, failure-to-file, failure-to-pay and failure-to-deposit penalties are not assessed at all during processing, and the IRS sends a notice confirming it.
For eligible returns with original due dates on or after January 1, 2027, this automatic process replaces First Time Abate. It does not cover the estimated tax penalty, information returns, or returns filed only for infrequent events such as Forms 706 and 709. Details are on our automatic penalty relief page.
When are new IRS penalty figures published?
Dollar amounts for the next year arrive with the IRS annual inflation adjustments, usually released in October or November. Interest rates are announced quarterly, and the January to March 2027 rate usually comes out in late November 2026.
| Figure | Status |
|---|---|
| Late filing and late payment percentages | Published; set by law |
| Minimum late filing penalty, returns due in 2027 | Published: $535 |
| Interest rate, Oct. to Dec. 2026 | Published: 7% |
| Interest rate, Jan. to March 2027 | Not yet announced; usually late November |
| Minimum late filing penalty, returns due in 2028 | Not yet announced; usually October or November |
| 2027 passport debt threshold | Not yet announced |
Interest rate details for each quarter are on our IRS interest rate 2027 page, and the full list of penalties is in the IRS penalties guide.
Common questions
What is the IRS late filing penalty for 2027?
It is 5% of the unpaid tax for each month or part of a month the return is late, up to 25%. For a return due in 2027 that is more than 60 days late, the minimum is $535 or 100% of the tax owed, whichever is less.
What were the IRS penalty rates in 2026?
The same percentages: 5% a month for late filing and 0.5% a month for late payment, each capped at 25%. The minimum for returns due in 2026 and more than 60 days late was $525.
Is the late payment penalty higher in 2027?
No. It remains 0.5% a month, dropping to 0.25% on an approved payment plan if you filed on time, and rising to 1% if tax is unpaid 10 days after a notice of intent to levy.
Do I owe a penalty if I file late but get a refund?
No late filing or late payment penalty applies when no tax is owed, because both are figured on unpaid tax. You still need to file within 3 years of the due date to claim the refund.
Does the new automatic penalty relief apply to my 2026 tax return?
It can. The IRS began applying automatic relief to eligible original returns starting with tax year 2025, and it replaces First Time Abate for eligible returns due on or after January 1, 2027.
Sources
- Failure to file penalty irs.gov
- Failure to pay penalty irs.gov
- Internal Revenue Bulletin 2025-45 (Rev. Proc. 2025-32) irs.gov
- Quarterly interest rates irs.gov
- IRS simplifies penalty relief, introduces automatic process for eligible taxpayers irs.gov
We check figures against these official pages. Rules change; confirm anything that affects a deadline or payment with the agency before you act.
Tell us what happened
Describe your situation and our editors will use it to improve this guide. If you leave your email, we may reply with a pointer to the right page or official contact. We never share your details.