# IRS penalty rates for 2027: every figure for tax year 2026 returns

Source: https://backtaxesdesk.com/penalties-interest/irs-penalty-rates-2027
Publisher: Back Taxes Desk (backtaxesdesk.com), independent editorial site
Topic: Penalties and Interest
Last updated: 2026-09-19

> 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.

## Key facts

- Failure-to-file rate: 5% of unpaid tax per month, max 25%
- Minimum for returns due in 2027 filed over 60 days late: $535 or 100% of the tax, whichever is less
- Failure-to-pay rate: 0.5% per month; 0.25% on a payment plan; 1% after a levy notice
- Underpayment interest, Oct. to Dec. 2026: 7%
- Jan. to March 2027 interest rate: Not yet announced; usually released in late November
- Tax 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](https://backtaxesdesk.com/penalties-interest/failure-to-file-penalty) and the [failure-to-pay penalty](https://backtaxesdesk.com/penalties-interest/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 |

Minimum failure-to-file penalty by year the return is due

> **Why you may see $525 elsewhere:** As of September 2026, the IRS failure-to-file penalty page lists $525 for returns due after December 31, 2025, which covers returns due in 2026. The $535 figure for returns due in 2027 appears in Rev. Proc. 2025-32. Where the two differ for a 2027 return, the revenue procedure is the more specific source.

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 |

Penalties on $3,000 of tax, return and payment on August 1, 2027

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](https://backtaxesdesk.com/penalties-interest/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](https://backtaxesdesk.com/penalties-interest/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 |

Status of 2027 season penalty and interest figures as of September 2026

Interest rate details for each quarter are on our [IRS interest rate 2027](https://backtaxesdesk.com/penalties-interest/irs-interest-rate-2027) page, and the full list of penalties is in the [IRS penalties guide](https://backtaxesdesk.com/penalties-interest).

## 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](https://www.irs.gov/payments/failure-to-file-penalty)
- [Failure to pay penalty](https://www.irs.gov/payments/failure-to-pay-penalty)
- [Internal Revenue Bulletin 2025-45 (Rev. Proc. 2025-32)](https://www.irs.gov/irb/2025-45_IRB)
- [Quarterly interest rates](https://www.irs.gov/payments/quarterly-interest-rates)
- [IRS simplifies penalty relief, introduces automatic process for eligible taxpayers](https://www.irs.gov/newsroom/irs-simplifies-penalty-relief-introduces-automatic-process-for-eligible-taxpayers)