What are the interest and penalty amounts for late filing or late payment?

Interest - If you owe taxes after April 15, 2025 (or May 1, 2025 if you qualify for Disaster Relief), North Carolina Department of Revenue (NCDOR) will charge 7% interest per year on the amount of tax due. This interest rate is subject to change after June 30, 2025 - visit the NCDOR website for details.

Failure to file penalty  - If you file your return after April 15, 2025 (or May 1, 2025 if you qualify for Disaster Relief), NCDOR will charge a failure to file penalty of 5% of the net tax due for each month or part of a month the return is late (maximum of 25%). You will not be charged this penalty if you qualify for an extension and file by the extension due date.

Late payment penalty - The late payment penalty is 5% of the tax not paid by April 15, 2025 (or May 1, 2025 if you qualify for Disaster Relief). If you file an extension on time and pay 90% or more of the total tax due by April 15, 2025 (or May 1, 2025 if you qualify for Disaster Relief), you will not be subject to a late payment penalty. If the 90% rule is met, any remaining balance due, including interest, must be paid with the income tax return on or before the expiration of the extension period to avoid the late payment penalty.  Interest is due from the original due date to the date paid.