What is the penalty for late payment of taxes in Virginia?

In Virginia, the penalties for late payment of taxes can vary depending on the type of tax owed. Generally, if a taxpayer fails to pay the taxes due by the deadline, the Virginia Department of Taxation imposes a penalty of five percent of the unpaid tax amount for each month the payment is late, up to a maximum of twenty-five percent. This penalty starts accruing immediately after the due date. In addition to the penalties, interest will also accrue on the unpaid tax amount. The interest rate is determined quarterly and is set based on the federal short-term rate plus a specified percentage determined by the state. It is important to note that interest continues to accrue until the amount is paid in full. Taxpayers are encouraged to file their returns on time, even if they cannot pay the full amount owed. Filing on time helps to minimize potential penalties. For more specific information regarding an individual’s tax situation or any updates to regulations, it is advisable to check the current web page of the Virginia Department of Taxation.