Penalty & Interest

If excise tax is not paid within 30 days of a sale, interest is due. Interest will be imposed from the date of sale to the date of full payment. It is calculated on a monthly basis, with a full month’s interest accruing at the beginning of each month. Even if the full payment is not made at the end of a month, any portion of a month existing at the time of full payment will accrue a full month of interest.

Interest Rates

Interest imposed before January 1, 1999 is computed at a rate of 1% per month or portion of a month. Interest imposed after January 1, 1999 is computed at the rates listed below:

YearYearly PercentageMonthly Percentage
20113%.205%
20103%.205%
20095%.4167%
20087%.5833%
20077%.5833%
20065%.4167%
20054%.3333%
20044%.3333%
20035%.4167%
20027%.5833%


Penalty Rates

In addition to interest, penalty will also be applied if the excise tax is not paid within 30 days of the sale, Penalty is imposed on the total amount of the unpaid excise tax (both state and local). The rates are listed below:

Time FrameRate
Within 1 month of sale date5% of the base excise tax
Within 2 months of sale date15% of the base excise tax
Within 3 months or more of sale date25% of the base excise tax


Assistance

If you have questions or need assistance calculating penalty and interest, please contact our office.  If you are a title company or attorney’s office, please refer to Item 1 of the Real Estate Excise Tax Supplemental Statement (PDF).