What Are the Penalties for Not Paying Sales Tax?

by | Nov 8, 2019

Short Summary: There can be significant consequences for not paying sales tax appropriately, both civil and criminal in nature. In general, if you do not collect and remit sales tax where you owe it, you may be subject to substantial penalties and interest. Any penalties assessed are determined by state policy, described in detail below. 

Based on conversations we’ve had, most business owners don’t have a lot of extra time or energy to deal with sales tax. We regularly receive questions like “What happens if I don’t collect sales tax?”  In this article, we are going to share what happens when a state “catches you” and determines that you have past-due sales tax returns. Basically, here is a list of the penalties for not paying sales tax. 

What Happens When a State Determines You Owe Sales Tax?

Generally speaking, when a state determines that you owe sales tax they will send you an assessment letter in the mail. The assessment will usually say something to the effect of “we believe you owe sales tax, and you are going to be liable for a huge sum of money unless you submit accurate sales tax returns to us.” If you receive an assessment letter from a state, don’t panic quite yet—assessed sales tax liabilities are usually much higher than the actual amount owed. 

Once you’ve received an assessment, you will need to complete the following:

  1. Get a sales tax permit
  2. Submit past-due sales tax returns
  3. Pay all sales tax that is due out of your own pocket

Be aware that you will also have to pay a substantial amount of penalties and interest for not properly paying sales tax.

Here are three key things to keep in mind when it comes to paying back sales tax:

1. You’ll have to pay for past-due sales tax out of your own pocket, since you didn’t collect it from customers. If you have a sales tax obligation but aren’t submitting sales tax returns, it is only a matter of time before the state catches-up. We frequently see historical sales tax audits in the six-figures.

2. You’ll have to pay penalties and interest for failure to file and pay sales tax. These penalties vary by state, but in general you can assume that penalties and interest will roughly total 30% of the amount of sales tax due. For example, if you owe $1,000 in sales tax, on average you will owe around $300 in penalties and interest.

3. You may be subject to criminal penalties if you showed intent to defraud the state. This one is pretty rare, and hopefully doesn’t apply to your situation. But if you are involved in a sales tax “cover-up”, the states will not look favorably on your case.

 

Criminal Penalties for Failure to File and Pay Sales Tax

Criminal penalties for sales tax are some of the most severe tax penalties that exist. Essentially, if you knew you owed sales tax and you didn’t pay it, then criminal liabilities could apply. 

Generally, criminal penalties apply if you…

  • Knowingly failed to pay any tax due or believed due with the intent to evade
  • Knowingly prepared (or aided in the preparation of) a materially fraudulent or false return
  • Simulated or falsely executed or signed a required document with intent to conceal or cover up a material fact relating to a tax
  • Knowingly filed a return or supplied false information with the intent that the department rely on the false statement in determining the tax liability

Please see below for state-by-state information regarding penalties for criminal failure to file or pay sales tax.

 

State Failure to File Failure to Pay
ALABAMA

Alabama’s criminal failure to file penalty is a misdemeanor with a $25 – $500 fine.

Willful failure is a misdemeanor with up to $25,000 ($100,000 for a corporation) fine and/or imprisonment for up to 1 year.

Alabama’s criminal failure to pay sales tax penalty is a felony. Up to $10,000 fine and/or imprisonment for up to 5 years.
ARIZONA Arizona’s criminal failure to file penalty is a Class 5 felony. Arizona’s criminal failure to pay sales tax penalty is a class 5 felony.
ARKANSAS Arkansas’s criminal failure to file penalty is a Class D felony. Class C felony if attempt to evade. Arkansas’s criminal failure to pay sales tax penalty is a class D felony. Class C felony if attempt to evade.
CALIFORNIA California’s criminal failure to file penalty is a misdemeanor with $1,000 – $5,000 fine and/or imprisonment for up to 1 year. Felony if intent to evade and unreported tax exceeds $25,000 in 12-month period with $5,000 – $20,000 fine and/or imprisonment for 16 months – 3 years. California’s criminal failure to pay sales tax penalty is a misdemeanor with $1,000 – $5,000 fine and/or imprisonment for up to 1 year. Felony if intent to evade and unreported tax exceeds $25,000 in 12-month period. $5,000 – $20,000 fine and/or imprisonment for 16 months – 3 years.
COLORADO Colorado’s criminal failure to file penalty is a misdemeanor. Up to $50,000 ($100,000 for a corporation) and/or imprisonment up to 1 year. Colorado’s criminal failure to pay sales tax penalty is a class 5 felony. Up to $100,000 ($500,000 for a corporation) and/or imprisonment.
CONNECTICUT Connecticut’s criminal failure to file penalty is up to $1,000 fine and/or imprisonment for up to 1 year. Connecticut’s criminal failure to pay sales tax penalty is up to $1,000 fine and/or imprisonment for up to 1 year.
DISTRICT OF COLUMBIA The District of Columbia’s criminal failure to file penalty is a misdemeanor. Up to $5,000 fine and/or imprisonment for up to 180 days. Felony if tax exceeds $10,000. Up to greater of 3 times tax or $10,000 and/or imprisonment for up to 10 years. The District of Columbia’s criminal failure to pay sales tax penalty is a misdemeanor. Up to $5,000 fine and/or imprisonment for up to 180 days. Felony if tax exceeds $10,000. Up to greater of 3 times tax or $10,000 and/or imprisonment for up to 10 years.
FLORIDA Florida’s criminal failure to file sales tax penalty is a felony if 6 consecutive returns have been missed and there is intent to evade.. Florida’s criminal failure to pay sales tax penalty (if it is a 1st or 2nd offense involving less than $300) is a misdemeanor; otherwise, 1st, 2nd, or 3rd degree felony depending on the amount of tax involved.
GEORGIA Georgia’s criminal failure to file sales tax penalty is a high and aggravated misdemeanor. Up to $5,000 fine and/or imprisonment for up to 1 year. Subsequent convictions are a felony. Up to $10,000 fine and/or imprisonment for up to 5 years. Georgia’s criminal failure to pay sales tax penalty is a high and aggravated misdemeanor. Up to $5,000 fine and/or imprisonment for up to 1 year. Subsequent offense is a felony. Up to $10,000 fine and/or imprisonment for up to 5 years.
HAWAII Hawaii’s criminal failure to file sales tax penalty is a misdemeanor. Up to $25,000 ($100,000 for a corporation) fine, imprisonment for up to 1 year, and/or probation. Hawaii’s criminal failure to pay sales tax penalty is a class C felony. Up to $100,000 ($500,000 for a corporation) fine, imprisonment for up to 5 years, and/or probation. Failure to remit use tax collected is embezzlement, subject to a fine of more than 5 times the amount not remitted or imprisonment for up to 10 years.
IDAHO Idaho’s criminal failure to file sales tax penalty is a  misdemeanor. Up to $300 fine and/or imprisonment for up to 6 months. Idaho’s criminal failure to pay sales tax penalty is a felony. Up to $10,000 fine and/or imprisonment for up to 5 years.
ILLINOIS Illinois’s criminal failure to file sales tax penalty is a class 4 felony. Class 3 felony is tax owed is $300 or more. Illinois’ ’s criminal failure to pay sales tax penalty is a class 4 felony. Class 3 felony if tax due is $300 or more.
INDIANA Indiana’s criminal failure to file sales tax penalty is a Class A misdemeanor. Indiana’s criminal failure to pay sales tax penalty is a class D felony.
IOWA Iowa’s criminal failure to file sales tax penalty is a Class D felony. Iowa’s criminal failure to pay sales tax penalty is a Class D felony.
KANSAS Kansas’s criminal failure to file sales tax penalty is a $500 – $10,000 fine and/or imprisonment for 1 – 6 months. Kansas’s criminal failure to pay sales tax penalty is a $500 – $10,000 fine and/or imprisonment for 1 – 6 months.
KENTUCKY Kentucky’s criminal failure to file sales tax penalty is a class D felony. Kentucky’s criminal failure to pay sales tax penalty is a Class D felony.
LOUISIANA Louisiana’s criminal failure to file sales tax penalty is an up to $1,000 fine and/or imprisonment for up to 1 year. Up to $2,000 fine and/or imprisonment up to 2 years if tax exceeds $1,000. Louisiana’s criminal failure to pay sales tax penalty is an up to $1,000 fine and/or imprisonment for up to 5 years.
MAINE

Maine’s criminal failure to file sales tax penalty is a class D crime. Subsequent offenses are Class C crime.

Intent to evade: Class D crime. Class C if tax exceeds $2,000 or for subsequent offense. Class B if subsequent offense and tax exceeds $2,000.

Maine’s criminal failure to pay sales tax penalty is a class D crime. Subsequent offenses are Class C crime.

Intent to evade: Class D crime. Class C if tax exceeds $2,000 or for subsequent offense. Class B if subsequent offense and tax exceeds $2,000.

MARYLAND Maryland’s criminal failure to file sales tax penalty is a misdemeanor. Up to $10,000 fine and/or imprisonment for up to 5 years. Maryland’s criminal failure to pay sales tax penalty is a misdemeanor. Up to $10,000 fine and/or imprisonment for up to 5 years.
MASSACHUSETTS Massachusett’s criminal failure to file sales tax penalty is a misdemeanor. Up to $25,000 ($50,000 for a corporation) fine and/or imprisonment for up to 1 year. Massachusetts’ criminal failure to pay sales tax penalty is a felony. Up to $10,000 fine and/or imprisonment for up to 5 years.
MICHIGAN

Michigan’s criminal failure to file sales tax penalty is a felony. Up to $5,000 fine and/or imprisonment for up to 5 years.

Knowing violation: Misdemeanor. Up to $1,000 fine and/or imprisonment for up to 1 year.

Michigan’s criminal failure to pay sales tax penalty is a felony if there is intent to defraud or evade. Up to $5,000 fine and/or imprisonment for up to 5 years.

Knowing violation: Misdemeanor. Up to $1,000 fine and/or imprisonment for up to 1 year.

MINNESOTA Minnesota’s criminal failure to file sales tax penalty is a felony if there is intent to evade. With no intent to evade, it is a misdemeanor. Minnesota’s criminal failure to pay sales tax penalty is a gross misdemeanor. Willful attempt to evade is a felony.
MISSISSIPPI Mississippi’s criminal failure to file sales tax penalty is a is a demeanor. Up to $500 fine and/or imprisonment for up to 6 months. Mississippi’s criminal failure to pay sales tax penalty is a misdemeanor. $50 – $100 fine.
MISSOURI Missouri’s criminal failure to file sales tax penalty is a up to $10,000 fine and/or imprisonment for up to 5 years. Missouri’s criminal failure to pay sales tax penalty is an up to $10,000 fine and/or imprisonment for up to 5 years.
NEBRASKA Nebraska’s criminal failure to file sales tax penalty is a class IV misdemeanor. Class IV felony if attempt to evade. Nebraska’s criminal failure to pay sales tax penalty is a Class IV misdemeanor. Class IV felony if willful.
NEVADA Nevada’s criminal failure to file sales tax penalty is a misdemeanor. Nevada’s criminal failure to pay sales tax penalty is a misdemeanor. Up to $500 fine and/or imprisonment for up to 6 months.
NEW JERSEY New Jersey’s criminal failure to file sales tax penalty is a  disorderly person offense.Failure with intent to evade is a 3rd degree crime. New Jersey’s criminal failure to pay sales tax penalty is a disorderly persons offense if reckless or negligent. Failure with intent to evade is a 3rd degree crime. Failure to remit $75,000 or more in tax collected is 2nd degree crime.
NEW MEXICO New Mexico’s criminal failure to file sales tax penalty is a felony. $1,000 – $10,000 fine and/or imprisonment for 1 – 5 years. New Mexico’s criminal failure to pay sales tax penalty is a felony. $1,000 – $10,000 fine and/or imprisonment for 1 – 5 years.
NEW YORK New York’s criminal failure to file sales tax penalty is a misdemeanor. New York’s criminal failure to pay sales tax penalty is a misdemeanor. Class E felony if attempt to defraud the state and/or a political subdivision of at least $10,000.
NORTH CAROLINA North Carolina’s criminal failure to file sales tax penalty is a class 1 misdemeanor. Class H felony if attempt to evade. North Carolina’s criminal failure to pay sales tax penalty is a Class 1 misdemeanor. Class H felony if attempt to evade.
NORTH DAKOTA North Dakota’s criminal failure to file sales tax penalty is a class A misdemeanor. North Dakota’s criminal failure to pay sales tax penalty is a Class A misdemeanor.
OHIO Ohio’s criminal failure to file sales tax penalty is a $100 – $1,000 fine and/or imprisonment for up to 60 days. Ohio’s criminal failure to pay sales tax collected is a Class 4 felony.
OKLAHOMA

Oklahoma’s criminal failure to file sales tax is as follows: Intentional disregard: Misdemeanor. Up to $5,000 fine and/or imprisonment for up to 1 year.

Intent to defraud or evade: Felony. $1,000 – $50,000 fine and/or imprisonment for 2 – 5 years.

Oklahoma’s criminal failure to pay sales tax penalty is a misdemeanor. Up to $500 fine for first offense. Up to $1,000 fine and/or imprisonment up to 60 days for subsequent offenses.
PENNSYLVANIA Pennsylvania’s criminal failure to file sales tax penalty is a misdemeanor. Up to $1,000 fine and costs of prosecution and/or imprisonment for up to 1 year. Pennsylvania’s criminal failure to pay sales tax penalty is a misdemeanor. Up to $1,000 fine and costs of prosecution and/or imprisonment for up to 1 year. A person who fails to remit collected tax may be charged with embezzlement, misapplication of entrusted property, and/or theft.
RHODE ISLAND Rhode Island’s criminal failure to file sales tax penalty is a felony. Up to $10,000 fine and/or imprisonment for up to 1 year. Rhode Island’s criminal failure to pay sales tax penalty is an up to $10,000 fine and/or imprisonment for up to 1 year.
SOUTH CAROLINA South Carolina’s criminal failure to file sales tax penalty is an up to $10,000 fine and/or imprisonment for up to 1 year. South Carolina’s criminal failure to pay sales tax penalty is an up to $10,000 fine and/or imprisonment for up to 1 year.
SOUTH DAKOTA South Dakota’s criminal failure to file sales tax penalty is a class 1 misdemeanor. Failure to file 2 or more times within a 12-month period is a Class 6 felony. South Dakota’s criminal failure to pay sales tax penalty is a Class 1 misdemeanor. Failure to pay 2 or more times within a 12-month period is a Class 6 felony.
TENNESSEE Tennessee’s criminal failure to file sales tax penalty is a class E felony. Offense involving less than $500 in use tax is a Class A misdemeanor. Tennessee’s criminal failure to pay sales tax penalty is a Class E felony. Offense involving less than $500 in use tax is a Class A misdemeanor.
TEXAS Texas’ criminal failure to file sales tax penalty is a class C misdemeanor. Second offense is a Class B misdemeanor (up to $2,000 fine). Subsequent offense is a Class A misdemeanor (up to $4,000 fine). Texas’ criminal failure to pay sales tax penalty is a Class C misdemeanor if tax collected and not paid is less than $10,000. State jail felony if tax is $10,000 – less than $20,000. 3rd degree felony if tax is $20,000 – less than $100,000. 2nd degree felony if tax $100,000 or more.
UTAH Utah’s criminal failure to file sales tax penalty is a 3rd degree felony. $1,000 – $5,000 fine. Utah’s criminal failure to pay sales tax penalty is a 2nd degree felony. $1,500 – $25,000 fine.
VERMONT Vermont’s criminal failure to file sales tax penalty is an up to $1,000 fine and/or imprisonment for up to 1 year. Up to $10,000 fine and/or imprisonment for up to 3 years if tax exceeds $500. Vermont’s criminal failure to pay sales tax penalty is an up to $1,000 fine and/or imprisonment for up to 1 year. Up to $10,000 fine and/or imprisonment for up to 3 years if tax exceeds $500.
VIRGINIA Virginia’s criminal failure to file sales tax penalty is a class 1 misdemeanor. Virginia’s criminal failure to pay sales tax penalty is a Class 1 misdemeanor.
WASHINGTON N/A Washington’s criminal failure to pay sales tax penalty is a Gross misdemeanor.
WEST VIRGINIA West Virginia’s criminal failure to file sales tax penalty is a misdemeanor. $100 – $2,500 fine.

West Virginia’s criminal failure to pay sales tax penalty is a misdemeanor. $100 – $2,500 fine and/or imprisonment for up to 6 months.

Failure to pay tax collected: Felony if tax not paid is $1,000 or more. $5,000 – $25,000 fine and/or imprisonment for 1 – 3 years. Misdemeanor if tax not paid is less $1,000. $500 – $5,000 fine and/or imprisonment for up to 6 months.

WISCONSIN Wisconsin’s criminal failure to file sales tax penalty is a misdemeanor. Wisconsin’s criminal failure to pay sales tax penalty is a felony or misdemeanor theft depending on amount of tax involved.
WYOMING Wyoming’s criminal failure to file sales tax penalty is a  misdemeanor. Wyoming’s criminal failure to pay sales tax penalty is a misdemeanor. Failure to remit taxes collected is a misdemeanor (up to $750 fine and/or imprisonment for up to 6 months) if tax is $500 or less, or a felony (up to $5,000 fine and/or imprisonment for up to 3 years) if tax exceeds $500.

Get Help Determining Where you Need to Pay Sales Tax

Let our team of professionals help you avoid penalties and get started with sales tax with our Done-for-You Sales Tax Service.

Civil Penalties for Failure to File and Pay Sales Tax

Generally speaking, civil penalties will apply if you were trying to pay sales tax in earnest but had difficulty meeting the filing deadline or making a payment in time. Please see below for state-by-state information regarding penalties for civil failure to file or pay taxes.

 

STATE Failure to File Penalties Failure to Pay Penalties
ALABAMA Alabama has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due or $50. Alabama has penalty for failing to pay sales tax on time of 10% of the sales tax due.
ARIZONA Arizona has a penalty for failing to file sales tax returns on-time of 4.5% of the sales tax due per month or fraction (maximum 25%). Arizona has penalty for failing to pay sales tax on time of 0.5% of the sales tax due per month or fraction (maximum 10%)
ARKANSAS Arkansas has a penalty for failing to file sales tax returns on-time of  5% of the sales tax due per month or fraction (maximum 35%). Arkansas has penalty for failing to pay sales tax on time of 5% of the sales tax due per month or fraction (maximum 35%).
CALIFORNIA California has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due. California has penalty for failing to pay sales tax on time of 10% of the sales  tax due.
COLORADO Colorado has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due plus 0.5% of the tax due per month (maximum 18%) or $15. Colorado has penalty for failing to pay sales tax on time of the greater of 10% of the sales tax due plus 0.5% of the tax due per month (maximum 18%) or $15.
CONNECTICUT Connecticut has a penalty for failing to file sales tax returns on-time of 15% of the sales tax due or $50. Connecticut has penalty for failing to pay sales tax on time of the greater of 15% of the sales tax due or $50.
DISTRICT OF COLUMBIA The District of Columbia has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due per month or fraction (maximum 25%). The District of Columbia has penalty for failing to pay sales tax on time of 5% of the sales tax due per month or fraction (maximum 25%).
FLORIDA Florida has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due (minimum of $50). Florida has penalty for failing to pay sales tax on time of 10% of the sales tax due (minimum of $50).
GEORGIA Georgia has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due or $5 per 30 days (maximum 25% or $25). Georgia has penalty for failing to pay sales tax on time of the greater of 5% of the sales tax due or $5 per 30 days (maximum 25% or $25).
HAWAII Hawaii has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due per month or fraction (maximum 25%). Hawaii has penalty for failing to pay sales tax on time of up to 25% of the sales  tax due.
IDAHO Idaho has a sales tax penalty for Failure to File of the greater of 5% of the sales tax due per month (maximum 25%) or $10. Idaho has penalty for failing to pay sales tax on time of 0.5% of the sales tax due per month (maximum 25%).
ILLINOIS Illinois has a penalty for failing to file sales tax returns on-time of 2% of the sales tax due (maximum $250). Illinois has penalty for failing to pay sales tax on time of 2% of the sales tax due if paid within 30 days; 10% of the sales tax due if paid after 30 days but within 90 days; 15% of the sales tax due if paid after 90 days but within 180 days; 20% of the sales tax due if paid after 180 days.
INDIANA Indiana has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due. Indiana has penalty for failing to pay sales tax on time of 10% of the sales tax due.
IOWA Iowa has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due. Iowa has penalty for failing to pay sales tax on time of 5% of the sales tax due.
KANSAS Kansas has a penalty for failing to file sales tax returns on-time of 1% of the sales tax due per month or fraction (maximum 24%). Kansas has penalty for failing to pay sales tax on time of 1% of the sales tax due per month or fraction (maximum 24%).
KENTUCKY Kentucky has a penalty for failing to file sales tax returns on-time of 2% of the sales tax due per 30 days or fraction (maximum 20%) or $10. Kentucky has penalty for failing to pay sales tax on time of the greater of 2% of the sales tax due per 30 days or fraction (maximum 20%) or $10.
LOUISIANA Louisiana has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due per 30 days or fraction (maximum 25%). Louisiana has penalty for failing to pay sales tax on time of 5% of the sales tax due per 30 days or fraction (maximum 25%).
MAINE Maine has a sales tax penalty for Failure to File of the greater of 10% of the sales tax due or $25. Maine has penalty for failing to pay sales tax on time of 1% of the sales tax due per month or fraction (maximum 25%).
MARYLAND Maryland has no penalty for failure to file sales tax returns by the due date Maryland has penalty for failing to pay sales tax on time of Up to 10% of the sales tax due.
MASSACHUSETTS Massachusetts has a penalty for failing to file sales tax returns on-time of 1% of the sales tax due per month or fraction (maximum 25%). Massachusetts has penalty for failing to pay sales tax on time of 1% of the sales tax due per month or fraction (maximum 25%).
MICHIGAN Michigan has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due if filed within two months and an additional 5% of the sales tax due per month or fraction after two months (maximum 25%). Michigan has penalty for failing to pay sales tax on time of 5% of the sales tax due if paid within two months and an additional 5% of the sales tax due per month or fraction after two months (maximum 25%).
MINNESOTA Minnesota has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due. Minnesota has penalty for failing to pay sales tax on time of 5% of the sales tax due per 30 days or fraction (maximum 15%).
MISSISSIPPI Mississippi has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due. Mississippi has penalty for failing to pay sales tax on time of 10% of the sales tax due for first offense; 15% of the tax due for second; 25% of the tax due for third; 50% of the tax due for any subsequent offense.
MISSOURI Missouri has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due per month or fraction (maximum 25%). Missouri has penalty for failing to pay sales tax on time of 5% of the sales tax due.
NEBRASKA Nebraska has a penalty for failing to file sales tax returns on-time of the greater of 10% of the sales tax due or $25. Nebraska has penalty for failing to pay sales tax on time of the greater of 10% of the sales tax due or $25.
NEVADA Nevada has a penalty for failing to file sales tax returns on-time of 10% of sales tax due. Nevada has penalty for failing to pay sales tax on time of up to 10% of the sales tax due.
NEW JERSEY New Jersey has a penalty for failing to file sales tax returns on-time of $100 plus 5% of the sales tax due per month or fraction (maximum of 25%). New Jersey has penalty for failing to pay sales tax on time of 5% of the sales tax due.
NEW MEXICO New Mexico has a penalty for failing to file sales tax returns on-time of the greater of 2% of the sales tax due per month or fraction (maximum 20%) or $5. New Mexico has penalty for failing to pay sales tax on time of the greater of 2% of the sales tax due per month or fraction (maximum 20%) or $5.
NEW YORK New York has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due for the first month plus 1% per month or fraction (maximum 30% and minimum of $50), if the return is late by 60 days or less. New York has penalty for failing to pay sales tax on time of 10% of the sales tax due for the first month plus 1% per month or fraction (maximum 30%).
NORTH CAROLINA North Carolina has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due if the failure is for not more than one month, with an additional 5% for each additional month, or fraction (maximum 25% in aggregate) or $5, whichever is greater. North Carolina has penalty for failing to pay sales tax on time of 10% of the sales tax due subject to a $5 minimum.
NORTH DAKOTA North Dakota has a penalty for failing to file sales tax returns on-time of the greater of 5% of the sales tax due per month or fraction (maximum 25%) or $5. North Dakota has penalty for failing to pay sales tax on time of greater of 5% of the sales tax due or $5.
OHIO Ohio has a penalty for failing to file sales tax returns on-time of the greater of 10% of the sales tax due or $50. Ohio has penalty for failing to pay sales tax on time of the greater of 10% of the sales tax due or $50.
OKLAHOMA Oklahoma has a penalty for failing to file sales tax returns on-time of 25% of the sales tax due if not filed within 10 days after written demand. Oklahoma has penalty for failing to pay sales tax on time of 10% of the sales tax due if not paid within 15 days.
PENNSYLVANIA Pennsylvania has a penalty for failing to file sales tax returns on-time of the greater of 5% of the sales tax due per month or fraction (maximum 25%) or $2. Pennsylvania has penalty for failing to pay sales tax on time of 3% of the sales tax due per month (maximum 18%).
RHODE ISLAND Rhode Island has a penalty for failing to file sales tax returns on-time of 10% of the sales tax due. Rhode Island has penalty for failing to pay sales tax on time of 10% of the sales tax due.
SOUTH CAROLINA South Carolina has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due if the failure is for not more than one month, with an additional 5% for each additional month or fraction of the month(maximum 25%). South Carolina has penalty for failing to pay sales tax on time of 0.5% of the sales tax due for the first month, with an additional 0.5% per each additional month or fraction of a month (maximum 25%).
SOUTH DAKOTA South Dakota has a penalty for failing to file sales tax returns on-time of the greater of 10% of the sales tax due or $10. South Dakota does not have any provisions for failing to pay sales tax late..
TENNESSEE Tennessee has a penalty for failing to file sales tax returns on-time of the greater of 5% of the sales tax due per 30 days or fraction (maximum 25%) or $15. Tennessee has penalty for failing to pay sales tax on time of the greater of 5% of the sales tax due per 30 days or fraction (maximum 25%) or $15.
TEXAS Texas has a penalty for failing to file sales tax returns on-time of the greater of 5% (plus an additional 5% if more than 30 days late) or $1. Texas has penalty for failing to pay sales tax on time of the greater of 5% (plus an additional 5% if more than 30 days late) or $1.
UTAH Utah has a penalty for failing to file sales tax returns on-time of the greater of 10% of the sales tax due or $20. Utah has penalty for failing to pay sales tax on time of the greater of 2%, 5% or 10% of the sales tax due or $20.
VERMONT Vermont has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due per month or fraction (maximum 25%). Vermont has penalty for failing to pay sales tax on time of 5% of the sales tax due per month or fraction (maximum 25%).
VIRGINIA Virginia has a penalty for failing to file sales tax returns on-time of the greater of 6% of the sales tax due per month or fraction (maximum 30%) or $10. Virginia has penalty for failing to pay sales tax on time of the greater of 6% of the sales tax due per month or fraction (maximum 30%) or $10.
WASHINGTON Washington has a penalty for failing to file sales tax returns on-time of 5% of tax the department has determined to be due, increased to 15% if not paid by the date in the notice, and increased to 25% if not paid within 30 days following the due date in the notice (minimum $5). Washington has penalty for failing to pay sales tax on time of 9% of the sales tax due, increased to 19% if not paid by the end of the month following the due date, and is increased to 29% if not paid by the second month following the due date (minimum $5).
WEST VIRGINIA West Virginia has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due per month or fraction (maximum 25%). West Virginia has penalty for failing to pay sales tax on time of 0.5% of the sales tax due per month or fraction (maximum 25%).
WISCONSIN Wisconsin has a penalty for failing to file sales tax returns on-time of 5% of the sales tax due per month or fraction (maximum 25%). Wisconsin has penalty for failing to pay sales tax on time of 5% of the tax owed per month or fraction (maximum 25%).
WYOMING Wyoming has a penalty for failing to file sales tax returns on-time of $10 ($25 if not filed within 30 days of notice to file). has penalty for failing to pay sales tax on time of 10% of the sales tax due.
Disclaimer: Our attorney wanted you to know that no financial, tax, legal advice or opinion is given through this post. All information provided is general in nature and may not apply to your specific situation and is intended for informational and educational purposes only. Information is provided “as is” and without warranty.

Submit a Comment

Your email address will not be published. Required fields are marked *

Free Resource: The ULTIMATE Sales Tax Checklist

This guide breaks down the process of getting compliant in 5 simple steps.

 

This is a great resource if you're starting to figure things out on your own.

Thanks for Subscribing!

Share This