Late filing penalties, interest, and timely-filing discounts vary widely from state to state. Some states charge a flat minimum, some charge a percentage that grows each month, and some reward on-time filers with a discount. This page compares 46 states side by side, using figures from each state's tax agency as summarized in our step-by-step filing guides.
Each state name in the tables links to the full how-to-file guide, which lists the agency sources and the date we checked them. Where a guide does not state a value, the table says so instead of guessing. This is educational information, not tax advice. Confirm current figures with the state before you file.
Key takeaways
- 25 of the 46 guides describe a timely-filing discount or compensation. Twenty-four state a rate: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nebraska, Nevada, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Utah (monthly filers only), Wisconsin, and Wyoming. Virginia describes a discount but not its amount. Colorado ended its state service fee on January 1, 2026. The other 20 guides describe none in the agency sources we reviewed, which is not a guarantee that none exists.
- 44 of the 46 guides say a return is required even with no sales. Maryland's guide says the Comptroller's published guidance does not state whether a return is mandatory when you had no sales, and Arkansas's guide describes a no-activity return option in ATAP but does not say whether one is mandatory.
- Fourteen guides describe electronic filing as required for all filers. They are Alabama, Connecticut, Indiana, Kansas, Kentucky, Maine, Massachusetts, New Jersey, Ohio, Tennessee, Utah, Virginia, Washington, and Wisconsin, some with waivers or narrow exceptions. Other states set thresholds instead, and South Dakota and Wyoming leave electronic filing optional.
- Eighteen of the 46 states cap the main monthly-accruing late penalty at 25% of the tax. They are Arizona, Georgia (the greater of 25% or $25), Hawaii, Idaho, Maine (late payment only), Massachusetts, Michigan, Missouri (when no return is filed), New Jersey, North Carolina, North Dakota, Pennsylvania, South Carolina, Tennessee, Vermont, Washington DC, West Virginia, and Wisconsin. Arkansas (35%), Kansas (24%), and New Mexico (20%) use other caps, and Louisiana's guide gives a 25% maximum without saying it accrues monthly.
- Nine guides say a late return carries a minimum penalty even when no tax is due. They are Florida, Kentucky, New Mexico, New York, South Dakota, Texas, Vermont, Virginia, and Wyoming.
How states penalize late sales tax returns
States usually treat filing late and paying late as two separate problems, and many charge for both. The penalty structures in the tables below fall into a few shapes:
- A one-time percentage of the tax due. California, Florida, Indiana, Maryland, Oklahoma, and South Dakota state 10% (Indiana: or $5, whichever is greater; South Dakota: with a $10 minimum), and Wyoming states 10% for late payment. Hawaii states 20% of tax unpaid within 60 days of the due date after a timely return, and Maine's failure-to-file penalty is $25 or 10%, whichever is greater. Alabama, Mississippi, and Nebraska also state 10% (Alabama: the greater of 10% or $50 for late filing; Nebraska: or $25, whichever is greater; Mississippi: for delinquent tax due to negligence or failure to comply). Connecticut's instructions list 15% or $50, whichever is greater. Texas and Illinois step up to 10% for payments that are 31 or more days late.
- A percentage that builds each month. Arizona (4.5% a month), Georgia, Hawaii, Idaho, Massachusetts, Missouri, New Jersey, North Carolina, North Dakota, Pennsylvania, South Carolina, Tennessee, Vermont, Washington DC, West Virginia, and Wisconsin add a percentage for each month or fraction of a month, up to a cap, and Maine does so for late payment (1% a month). Arkansas (5% per month for late filing, up to 35%), Kansas (1% per month, up to 24%), and New Mexico (2% per month, up to 20%) use different rates and caps. Louisiana's guide says delinquent filing penalties generally begin at 5% and may increase to 25%, without saying how fast.
- A tiered escalation. Washington assesses 9%, then 19%, then 29% as the delinquency passes month-end marks. Nevada steps from 2% to 10% over the first 31 days, and Utah steps from 2% to 10% (each with a $20 floor) over 16 days.
- A flat amount. Texas charges $50 for each late report, Wyoming charges $10 for a late return even when no tax is due, and Wisconsin's guide lists a $20 late filing fee alongside its percentage penalty.
- Interest on top. Where a guide describes interest, it accrues on unpaid tax, generally from the due date, at a rate the state sets or ties to a federal or prime rate. Texas interest begins on the 61st day after the due date. Rhode Island's 2026 rate for sales tax is 18% a year, the highest in the tables, and Hawaii charges 2/3 of 1% a month.
Filing late usually also costs you the timely-filing discount where a state offers one. Table 2 shows which states do.
Late filing and late payment penalties and interest by state
| State | Late filing / late payment penalty | Interest | Notes |
|---|---|---|---|
| Alabama | Late filing: the greater of 10% of the tax required to be paid on the return or $50. Late payment: 10% of the delinquent tax. | Set by the Secretary of the Treasury under 26 U.S.C. 6621 and due if tax is not timely paid. Rate not stated; see guide. | Electronic payment information must be transmitted by 4 p.m. Central time on the due date to count as timely. A late zero return is still subject to the late filing penalty. You can ask for a penalty waiver in My Alabama Taxes with a valid explanation. |
| Arizona | Late filing: 4.5% of the tax for each month or fraction of a month, up to 25%. Late payment: 0.5% for each month or fraction, up to 10%. Combined total capped at 25%. | The federal short-term rate plus three percentage points, compounded annually. Rate not stated; see guide. | Penalties and interest run from the 20th, even if you file within the electronic grace period. The guide says to check ADOR for current rates. |
| Arkansas | Failure to file: 5% of the tax owed for each month or part of a month, up to 35%. Failure to pay: 1% per month, up to 35%. Combined penalties capped at 35%. | 10% per year, from the original due date until payment. | This is the Department's general penalty guidance, written around the April 15 income tax due date, so confirm how it applies to sales and use tax. Failing to make a required prepayment, or to pay one by EFT, carries 5%. The guidance says interest and penalty are generally not waived. |
| California | 10% of the tax due for a late return or late payment, capped at 10% combined for the same period. Late prepayment: 6%, or 10% for negligence or intentional disregard. | Charged for each month or fraction of a month, from the day after the due date. Rate not stated; see guide. | CDTFA can grant relief in some cases, such as circumstances beyond your control. Not paying by EFT when required can bring a 10% penalty on returns and 6% on prepayments. |
| Colorado | The greater of $15 or 10% of the unpaid tax, plus one-half of one percent for each month the tax stays unpaid, not to exceed a total of 18%. | 2026: 8% discounted rate, 11% regular rate, from the original due date. | The discounted rate applies if you pay before a notice of deficiency, or within 30 days of it. Not e-filing when required: the greater of $50 or 5% of the tax due. |
| Connecticut | Nonpayment or late payment: 15% of the tax due or $50, whichever is greater, per the Form OS-114 instructions. The Department describes late payment penalties as generally 10% or 15% depending on tax type. | 1% per month or fraction of a month, from the due date until payment. | Confirm the amount that applies to your account. Not paying electronically when required: 10% of the required payment, capped at $2,500 for a first offense and $10,000 for a second. You can request a penalty waiver for reasonable cause after paying all tax and interest; interest cannot be waived. Connecticut's 15%-or-$50 penalty applies to tax not paid when due, so our guide does not state a penalty for a late zero return (Conn. Gen. Stat. § 12-419). |
| Florida | 10% of the tax owed, minimum $50. Late filing and late payment for the same period draw one 10% penalty. | Floating rate published twice a year. Rate not stated; see guide. | $10 each for failing to e-file or e-pay when required. The $50 minimum applies to a late zero return. |
| Georgia | The greater of 5% of the tax due or $5 for each month or fraction of a month late. Maximum: the greater of 25% of the tax due or $25. | Bank prime loan rate plus 3% for periods beginning on or after July 1, 2016, reviewed each January. | Penalty is calculated separately on state and local taxes in aggregate and billed after the return is processed. |
| Hawaii | Late filing: 5% of the unpaid tax per month or part of a month, up to 25%. Late payment after a timely return: 20% of the tax unpaid within 60 days of the due date. | 2/3 of 1% per month or part of a month on unpaid tax and penalties, from the first calendar day after the due date. | Failing to e-file or e-pay when required: 2%. A waiver of the e-file requirement can be requested on Form L-110. Not completing the district schedule (Part V): 10% of the combined state and county surcharge tax due. Hawaii taxes general excise receipts rather than sales. |
| Idaho | Return not filed on time: 5% of the tax due for each month late, up to 25%. Return filed but tax not paid: 0.5% of the tax due for each month late, up to 25%. | 6% per year for 2026, from the original due date until paid. | No penalty is due if no tax is due. The minimum penalty is $10, and a return or payment one day late owes the entire month of penalty. Not paying by ACH when required for payments of $100,000 or more can bring interest and a $500 penalty. |
| Illinois | Late filing: the lesser of $250 or 2% of the tax required to be shown due. Late payment: 2% for 1 to 30 days, 10% for 31 or more days. | Reviewed on January 1 and July 1. Rate not stated; see guide and Publication 103. | A late return or payment also loses the timely-filing discount. |
| Indiana | 10% of the tax due or $5, whichever is greater, for a late payment. 20% or $5, whichever is greater, if a Notice of Proposed Assessment follows a Notice of Failure to File. | Set each year: 7% for 2026 and 6% for 2027. | An estimated return prepared by the Department carries a 20% penalty. A faulty payment carries a $35 flat fee. The penalty is not computed on interest. |
| Iowa | Failure to file: 5% of the unpaid tax, if you paid less than 90% of the correct tax. Failure to pay: 5% of the unpaid tax, on the same condition. Both can apply. | 10.0% a year for 2026 (0.8% a month). | $1,000 for each unfiled return if still unfiled 90 days after a demand letter. 5% for paying or filing by the wrong method when electronic is required. Penalties can be waived in limited cases on Form 78-629 or in GovConnectIowa. |
| Kansas | 1% for each month or portion of a month a payment is late, up to 24%. A return filed on time without payment has the same penalties as a late return. | 8% for January 1 through December 31, 2026, reset each calendar year. Charged for each month or fraction of a month, and not charged on penalty or on interest. | You can ask for a penalty waiver by letter if the delay was beyond your control. Interest must be paid before a waiver request is considered and is not subject to waiver. A returned check carries a $30 fee. |
| Kentucky | Late filing: 2% of the tax due for each 30 days or fraction, up to 20%, minimum $10. Late payment: the same 2% and 20% cap, minimum $10. | 9% for calendar year 2026, set by statute and not waivable. | Both penalties can apply to the same period. Minimum late filing penalty is $100 if the Department issues a jeopardy or estimated assessment for a missing return. The Department may consider waiving penalties for reasonable cause. |
| Louisiana | Delinquent filing penalties generally begin at 5% of the tax due and may increase to a maximum of 25%. | Accrues on unpaid tax from the original due date until paid. Set by Louisiana law, changes annually, and is published on Form R-1111. Rate not stated; see guide. | The Department's penalties page applies to state taxes generally, not only sales tax, so confirm the calculation for your return. A negligence penalty may also apply. The Department can waive certain penalties for reasonable cause after you file all returns and pay all tax and interest; interest generally cannot be waived. Local and remote-seller penalties follow each jurisdiction's own rates. |
| Maine | Failure to file: $25 or 10% of the tax due, whichever is greater, or $25 or 25% if not filed within 60 days after a formal demand. Failure to pay: 1% of the unpaid tax per month or part of a month, up to 25%. | 9% for 2026, compounded monthly. | Filing an extension does not extend the time to pay. |
| Maryland | 10% of the tax due. | Accrues monthly on unpaid amounts. Rate not stated in the guide; check the Comptroller. | A late return or payment also forfeits the timely filing discount. |
| Massachusetts | Late return: 1% of the tax required to be shown for each month or part of a month, up to 25%. Late payment: 1% of the unpaid tax for each month or part of a month, up to 25%. | For underpayments, the federal short-term rate plus four percentage points, compounded daily, so it can change quarterly. | DOR may waive or abate penalties, in whole or in part, for reasonable cause and not willful neglect. |
| Michigan | 5% of the tax due for the first two months, then another 5% for each month or fraction of a month, to a maximum of 25%. | One percentage point above the adjusted prime rate, adjusted each January 1 and July 1. | The guide notes Treasury's general guidance is written for income and business taxes, so check the current notice for your return. Remote sellers may qualify for Voluntary Disclosure, which can offer a penalty waiver. |
| Minnesota | Late filing: 5% of tax not paid by the due date. Late payment: 5%, plus 5% for each additional 30 days or fraction, to a maximum of 15%. | 7% annually on unpaid tax and penalties, from the due date until paid in full. | Missing return: 5% of the unpaid tax or $100, whichever is greater. Repeat late filing or payment after a warning letter: 25%. Paying by the wrong method when electronic payment is required: 5%. A filing extension does not extend the payment deadline. |
| Mississippi | Delinquent or deficient tax due to negligence or failure to comply may bring 10% of the deficiency or delinquency, or interest of 0.5% per month, or both. | One-half of one percent (0.5%) per month, from the due date until paid. Interest begins the month after the due date. | The penalty applies immediately. Confirm the amount that applies to your situation with the Department. Extensions are not generally available, but the Commissioner may grant one for good cause. |
| Missouri | Return filed but not paid: 5% of the tax due, which does not increase. No return filed: 5% of the tax due for each month late, up to 25%. Late quarter-monthly payment: 5%. | 7% for deficiency balances in 2026, reset each January 1. Not charged on the additions to tax. | The pages we reviewed do not describe a penalty waiver process for sales tax. |
| Nebraska | 10% of the tax due or $25, whichever is greater, for failing to file or pay by the due date. Fraud or intent to evade: 25% of the understatement or $50, whichever is greater. | 8% per year on delinquent state taxes for 2025 and after, from the due date until payment, per Revenue Ruling 99-26-2. | A return filed without payment can still draw the penalty. Noncompliance with the electronic payment mandate carries a $100 penalty. |
| Nevada | Tiered by days late: 2% for 1 to 10 days, 4% for 11 to 15, 6% for 16 to 20, 8% for 21 to 30, and 10% for 31 or more. | 0.75% per month or fraction of a month. | A late return also loses the 0.25% collection allowance. The Department offers a waiver request for circumstances beyond your control and a Voluntary Disclosure Program for unfiled returns that can lead to a waiver; it must approve either one. |
| New Jersey | Late filing: 5% of the tax due for each month or part of a month, up to 25% of the balance due. Late payment: 5% of the tax due. | 3 percentage points above the prime rate, compounded annually. | The Division may also charge $100 for each month the return is late. |
| New Mexico | Negligence penalty: 2% of the tax due for each month or part of a month, up to 20%. Minimum penalty: $5, even if no tax is due. | Accrues daily at the rate set for individual income tax purposes under the Internal Revenue Code, which changes quarterly. 7% annually for July 1 through December 31, 2026. | New Mexico taxes gross receipts rather than sales. The Department says interest cannot be waived by law. A $20 penalty applies to a returned check. The Department's penalty and interest page sits in its individuals section, while the return instructions apply the same penalty to gross receipts tax. |
| New York | No tax due: $50. Tax due and up to 60 days late: 10% for the first month plus 1% for each additional month or part of a month, up to 30%, minimum $50. | Charged from the due date until paid, at rates set quarterly. Rate not stated; see guide. | More than 60 days late or not filed: see guide for the alternative amounts. The Tax Department can reduce or remove some penalties for reasonable cause. |
| North Carolina | Failure to file: 5% per month or fraction of a month, up to 25%. Failure to pay: 5%. | Charged from the due date until paid. Rate published on the NCDOR website; not stated in the guide. | See guide. |
| North Dakota | Late filing: 5% of the tax due or $5, whichever is greater, for the first month, plus 5% for each additional month or fraction of a month, up to 25%. Late payment: 5% of the tax not paid by the deadline, or $5, whichever is greater. | 12% per year from the filing deadline until paid. Not charged for the first month a return is late. | The Commissioner may waive and refund all or part of the penalty and interest if the delay was excusable. |
| Ohio | Failure to timely remit collected tax: a penalty of up to 50% of the tax due may be assessed. | 7% for calendar year 2026 (certified rate for taxes other than estate and personal property tax). | A late return or payment forfeits the timely filing discount. A $50 fee applies to every returned check. |
| Oklahoma | 10% of the tax due. On the sales tax return it applies if the return and remittance are not postmarked within 15 calendar days of the due date. Also 25% if a vendor fails to file within ten days after written demand, and 50% for fraud. | 1.25% per month, from the due date until paid, for each month or part of a month. | Penalty and interest may be waived at the Commission's discretion, in writing, after you pay the tax. |
| Pennsylvania | 5% of the tax due for each month or fraction of a month the return is unfiled, up to 25%, minimum $2. | Calculated daily. The annual rate is set each January 1 from the U.S. Treasury rate and published on form REV-1611. Rate not stated; see guide. | EFT noncompliance: 3% of the tax due, up to $500. No vendor discount on a late return. |
| Rhode Island | Not stated for a late-filed or late-paid return. For a deficiency determination, the statute adds 10% for negligence or intentional disregard and 50% for fraud. | 18% a year for trust fund taxes, which include sales tax, for calendar year 2026. | Larger business registrants that do not file and pay electronically face $50 for each failure to e-file and 5% of the tax or $500, whichever is less, for each failure to e-pay, unless there was reasonable cause. A 75-day tax amnesty runs December 3, 2026 through February 15, 2027 for delinquent periods ending on or before December 31, 2025. |
| South Carolina | Failure to file: 5% per month or fraction of a month, up to 25%. Failure to pay: 0.5% per month or fraction of a month, up to 25%. | Under Sections 6621 and 6622 of the Internal Revenue Code. Rates change quarterly and compound daily. | You can ask SCDOR to waive penalties in MyDORWAY or on Form C-530. SCDOR does not waive interest. |
| South Dakota | 10% of the tax liability if the return is not received within 30 days following the month the return is due. Minimum $10, even if no tax is due. | 1% per month on past-due tax until paid, with a minimum of $5 in the first month. | Failing to file or pay one return within sixty days of the due date is a Class 1 misdemeanor. The Voluntary Disclosure Program lists possible penalty waiver among its benefits for unregistered sellers. |
| Tennessee | 5% of the tax due for each 30-day period or portion, up to 25% of the delinquent amount. Minimum $15 for delinquent filing. | Due on tax paid after the statutory due date. Rate set by state law and published by the Department; not stated in the guide. | Interest is calculated as tax due times rate times days delinquent, divided by 365.25. |
| Texas | Late report: $50, even if no tax is due. Late payment: 5% for 1 to 30 days, 10% for more than 30 days. An additional 10%, for 20% in total, if paid after the date on a Notice of Tax Due. | Begins on the 61st day after the due date. Rate not stated; see guide. | Late returns and payments also lose the timely filing discount. |
| Utah | 1 to 5 days late: the greater of $20 or 2% of the unpaid tax. 6 to 15 days: the greater of $20 or 5%. 16 or more days: the greater of $20 or 10%. | Simple interest at a rate set each year. 6% for January 1, 2025 through December 31, 2026. | A further penalty applies if a late-filed return is not paid in full within 90 days of the due date. The late payment penalty does not apply to a return with no tax due. A return that must be filed electronically draws the late filing penalty if filed on paper. The Commission may waive, reduce, or compromise penalties or interest for reasonable cause. |
| Vermont | Late payment: 5% per month or part of a month, up to 25% of the unpaid tax. Late filing: 5% per month the return is not filed; a return filed more than 60 days late also draws $50, even if no tax is owed, unless an extension was filed. | 7.75% a year for 2026. | The Department may assess a failure-to-file penalty in addition to a failure-to-pay penalty, but says it will not assess multiple penalties for failing to pay. The page we reviewed does not describe a waiver process for sales tax. |
| Virginia | Filed more than 6 months late with tax owed: 6% per month, up to 30%. Filed within 6 months but paid after: 6% per month, also capped at 30%. Minimum $10, even when no tax is owed. | The federal underpayment rate under Internal Revenue Code Section 6621, plus 2%. | For penalties of $2,000 or less, you can write to Virginia Tax with documentation of extenuating circumstances. Larger penalties require an offer in compromise. |
| Washington | 9% if the tax is not paid by the due date, 19% after the last day of the month following the due date, and 29% after the last day of the second month. Minimum $5. | Published in the Department's interest rate tables and changed annually. Rate not stated; see guide. | The Department can waive late penalties in certain circumstances. Ask for an extension before the due date. |
| Washington DC | 5% of the unpaid tax for each month or fraction of a month the return is not filed or the tax is not paid, up to 25%. | 10% per year, compounded daily, on a late payment. | A one-time collection fee of 10% of the balance due after 90 days. Negligence: 20% of the underpayment. $65 for a dishonored payment. OTR may waive or cancel delinquent return penalties in limited cases for reasonable cause, on a written request with documents; confirm whether any relief applies to interest. |
| West Virginia | Failure to file: 5% per month, up to 25%. Failure to pay: 0.5% per month, up to 25%. | 11.5% for 2026, accruing daily. | Late filing and late payment penalties can apply together. Additions to tax may be waived for reasonable cause and not willful neglect, by letter or web notice in MyTaxes. Penalties for negligence, intentional disregard, or fraud cannot be waived. |
| Wisconsin | Late filing fee: $20. Negligence penalty: 5% of the tax due for each month or fraction of a month, up to 25%. | 1.5% per month on the tax due, from the due date to the payment date. | The Department may waive the late filing fee and negligence penalty on the death of the person required to file, or where a reasonable explanation exists. |
| Wyoming | Late payment: 10% of the tax due. Late filing: $10 regardless of whether any tax is due, plus $25 more if the return is not filed within 30 days of the Department's notice. | 10.75% a year for 2026, calculated daily. | Wyoming statute allows the Department to credit or waive penalties and interest for good cause. |
Timely-filing discounts (vendor compensation) by state
Several states let sellers keep a small share of the tax they collect for filing and paying on time. Each program has its own name: vendor's compensation, collection allowance, retailer's discount, or dealer discount. The common condition is timing: in the states below that describe a current discount, a late return or a late payment costs you the discount.
| State | Discount or compensation | Conditions |
|---|---|---|
| Alabama | Timely payment discount: 5% of the first $100 of tax due and 2% of tax over $100, not to exceed $400. Simplified Sellers Use Tax participants may retain 2%, capped at $8,000 per month. | Tax must be paid before the 20th of the month in which it is due. Other Department pages may describe the discount differently, so confirm the amount for your account. Non-state administered local taxes filed through ONE SPOT may use a different rate. |
| Arizona | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Arkansas | Discount for timely payment: remit 98% of the state tax due, a 2% discount, capped at $1,000 per month of state tax (Ark. Code § 26-52-503). | Tax must be remitted on or before the 20th, or the discount is forfeited. DFA's rule, in a 2008 compilation, says it cannot be taken on prepayments and is lost if a required EFT payment is not made. |
| California | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Colorado | State service fee ended January 1, 2026 (House Bill 25B-1005). Retailers may still be eligible for the local service fee. | For periods before 2026, the state fee was capped at $1,000 and needed the DR 0103 worksheet above that. Local rates are listed in DR 1002. |
| Connecticut | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Florida | Collection allowance: 2.5% of the first $1,200 of tax due, up to $30. | File and pay electronically and on time. You can claim the allowance or report penalty and interest, but not both. |
| Georgia | Vendor's compensation: 3% of the first $3,000 of combined state and local tax on non-motor-fuel sales, and 0.5% of the amount above $3,000. | Return and payment must both be timely. Required e-filers lose it if they send a paper return or payment. |
| Hawaii | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Idaho | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Illinois | Discount: 1.75% of the tax due, or $5 per year if that is greater, capped at $1,000 per month, starting January 1, 2025. | Lost if the return or payment is late. |
| Indiana | Collection allowance by prior-year liability: 0.73% for $60,000 or less, 0.53% for $60,000.01 through $600,000, 0.26% for $600,000.01 or more. | Return and payment on or before the due date. The tiers come from a bulletin that covers sales and gasoline use tax together; INTIME shows your percentage. |
| Iowa | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Kansas | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Kentucky | Reimbursement of collection costs: 1.75% of the first $1,000 of tax due on each return and 1.5% of the tax above $1,000, up to $50 per reporting period (KRS 139.570). | Not allowed if the amount due is delinquent at the time of payment, so returns filed or paid late lose it. |
| Louisiana | Vendor's compensation: 1.05%, an effective rate of 0.84% beginning January 1, 2025, up to $750 per month per dealer for tax periods beginning on or after January 1, 2025. | Allowed only if you file and pay on time. The same condition applies to remote sellers filing with the Commission. |
| Maine | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Maryland | 1.2% of the first $6,000 of tax and 0.9% of the amount above $6,000, up to $500 per return. | Return and payment on time. A vendor that files or is eligible to file a consolidated return gets a maximum of $500 across all returns. |
| Massachusetts | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Michigan | Monthly and quarterly filers: 0.75% of the 4% sales tax if paid by the 12th, up to $20,000 a period, or 0.5% if paid from the 13th through the 20th, up to $15,000. Accelerated filers: 0.5% if paid by the 20th. | Applies to tax collected at the 4% rate, with separate formulas for the 6% lines. Timing of payment sets the rate; see the Form 5096 instructions. |
| Minnesota | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Mississippi | 2% of the tax liability for collecting, complying with the statutes, and filing and paying when due. Limited to $50 per reporting period and $600 per year. | Tax must be paid by the 20th of the month in which it is due. Recalculated to zero for all locations if a return is late or underpaid. No discount on some taxes, such as utility services and contracting; see guide. |
| Missouri | Timely payment allowance: 2% of the tax due. | Return filed and paid by the due date. Already built into estimated quarter-monthly payments, and taking more on them creates an underpayment. The pages we reviewed state no cap. |
| Nebraska | Collection fee: 2.5% of total Nebraska and local sales tax, up to $75 per return. | A timing condition is not stated in our guide. No fee may be deducted for reporting use tax. |
| Nevada | Collection allowance: 0.25% of sales tax. | Requires a timely filed return. Applies to sales tax only, not use tax. |
| New Jersey | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| New Mexico | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| New York | Vendor collection credit: 5% of the tax due, up to $200 per quarterly return. | Return on time and paid in full. |
| North Carolina | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| North Dakota | Retailer deduction: 1.5% of the tax due, up to $110 per return. | Allowed only if the tax is paid within the statutory deadline, though the Commissioner may allow it for good cause if a return or payment is late. This comes from the Century Code, so confirm how it appears on your ND TAP return. |
| Ohio | Vendor's timely filing discount: historically three-fourths of one percent (0.75%) of the amount due. For returns due on or after January 1, 2026, capped at $750 per vendor's license for each month covered. | Return and full payment must reach the Department by the due date. The cap does not apply to the sale or lease of motor vehicles. |
| Oklahoma | Timely payment discount: 1% of the tax due, up to $2,500. | Return and remittance must be filed by the due date. No entry if the return is late, and none for Direct Pay. |
| Pennsylvania | Vendor discount: the lesser of 1% of tax collected or $25 for monthly filers, $75 for quarterly filers, or $150 for semiannual filers. | Return filed and paid on time. No discount on a late return, and none applies to use tax. |
| Rhode Island | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| South Carolina | 3% of the tax due if under $100, 2% if $100 or more. Capped at $3,000 per state fiscal year, or $3,100 for taxpayers who file electronically. | File and pay in full by the due date. The cap applies to the taxpayer, not each location. No discount is recomputed on a late amended return. |
| South Dakota | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Tennessee | No general discount. Out-of-state sellers that voluntarily register without being required to may deduct 2% of the first $2,500 and 1.15% above it on each report (Tenn. Code § 67-6-509). | Not allowed if the report or payment is delinquent, and Model 1 sellers under the Streamlined agreement are excluded. |
| Texas | Timely filing discount: 0.5% of the tax timely reported and paid. Businesses that prepay can take an additional 1.25%, for a total of 1.75%. | Both discounts are lost if the return or payment is late. |
| Utah | Seller discount: 1.31% of the combined sales tax, for monthly filers. | File and pay on time; lost if a monthly return is late or underpaid. Quarterly filers cannot take it. Monthly filers required to pay by EFT must pay that way to qualify, and paying by card forfeits it. |
| Vermont | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Virginia | Dealer discount exists; schedule not stated in our guide. Check the current schedule on the Virginia Tax site or in the statute. | Applies only if the amount due was not delinquent at the time of payment. |
| Washington | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Washington DC | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| West Virginia | None described in the agency pages and return instructions we reviewed. | Confirm with the agency; a gap in our sources is not a guarantee that none exists. |
| Wisconsin | Retailer's discount for taxes payable on or after October 1, 2023: the whole amount if total sales tax is $10 or less, $10 if between $10 and $1,333, and 0.75% of the tax if more than $1,333, capped at $8,000. | Allowed only if you pay by the due date or before the end of any extension. |
| Wyoming | Vendor compensation credit: 1.95% of the tax due, capped at $500 per reporting period. | Return and payment must both be postmarked by the 15th of the month the tax is due, and the account must be in good standing. The credit is earned by the taxpayer, not by each license. The vendor manual describes an older formula, so follow the current bulletin. |
Zero returns and electronic filing by state
A zero return reports a period with no sales or no tax due. Most states still require one, and several charge a penalty if you skip it. Electronic rules split into two kinds: a requirement to file online, and a requirement to pay by EFT or another electronic method once your payments cross a threshold.
| State | Zero return required? | Electronic filing or payment rule |
|---|---|---|
| Alabama | Yes. A return is required every period, even with no activity. | Business taxpayers must file electronically in My Alabama Taxes. Payments of $750 or more must be electronic. |
| Arizona | Yes. File a $0 TPT return for every assigned period. | Businesses with more than one location, or with additional region or deduction codes, must file online at AZTaxes. See guide for paper timing. |
| Arkansas | Not stated. ATAP has a File a Return Reporting No Activity option that submits a zero dollar return, but the guide says the Department's pages do not say whether one is optional. Confirm with the Department. | Businesses with average net sales of $200,000 or more per month must make prepayments by EFT. Taxpayers with an average total tax liability of $20,000 or more per month must pay by an electronic method. Failing to pay by EFT when required carries a 5% penalty. |
| California | Yes. File by the due date even with no sales. | EFT is mandatory when average monthly payments over 12 months are $10,000 or more. |
| Colorado | Yes. Every filing period, or the Department files for you and estimates the amount billed. | E-filing phased in by prior-year gross sales: $500,000 or more from January 2026, $50,000 or more from January 2027, all returns from January 2028. EFT required above $75,000 a year in state sales tax. |
| Connecticut | Yes. Businesses report all sales activity even if no sales were made or no tax is due. | Form OS-114 must be filed and paid electronically. Only taxpayers who receive a waiver (Form DRS-EWVR, for one year) may file a paper return and pay by check. |
| Florida | Yes. A DR-15 for every period, even when no tax is due. | Must file and pay electronically if you paid $5,000 or more in sales and use tax in the prior fiscal year. |
| Georgia | Yes. Two cases: check "No Tax Due" on the ST-3 if you had sales but none taxable, or use the "No Sales/Use Tax Activity" box and Form PV-ST only if you had no activity. | EFT required if tax owed on any return exceeds $500. Dealers with four or more locations must file on the Georgia Tax Center. |
| Hawaii | Yes. File a return showing $0 income. | Electronic filing is required when annual liability is above $4,000. A 2% penalty applies for failing to e-file or e-pay when required. |
| Idaho | Yes. A return for every period if you have a seller's permit, except under the small seller exemption. Report $0 sales for 12 months in a row and the Commission will cancel the permit. | The Commission no longer mails paper returns, so a regular permit holder files in TAP. ACH debit or credit is required for payments of $100,000 or more. |
| Illinois | Yes. A signed ST-1 for each period, even with no receipts. | Electronic payment required when annual Retailers' Occupation and Use Tax liability is $20,000 or more. |
| Indiana | Yes, unless the Indiana tax account has been properly closed. | All businesses must file and pay electronically. EFT required when average monthly tax exceeds $5,000. |
| Iowa | Yes. File a return showing $0 sales. | Monthly and seasonal filers must file and pay electronically. Annual filers may file online or on paper. |
| Kansas | Yes. An electronic return for each reporting period, entering 0 for gross sales if there were none. | The Department requires businesses to file sales tax returns electronically. State law lets the Secretary of Revenue require EFT from taxpayers whose sales tax liability exceeds $45,000 in a calendar year. |
| Kentucky | Yes. A late zero return still carries a penalty. | Sales tax must be filed and paid online. Waivers only for businesses without internet access or with documented technical problems. |
| Louisiana | Yes. Businesses with an active account are generally required to file every reporting period, even if no tax is due. | Sellers with a physical presence file in LaTAP or Parish E-File; remote sellers file with the Commission. Taxpayers whose average payments exceed $5,000 must pay electronically. |
| Maine | Yes. File even if there are no taxable sales. | Returns must be filed electronically unless the Department grants a waiver. Rule 102 requires electronic payment once prior-year liability crosses certain thresholds. |
| Maryland | Not stated. The guide says you can file when no tax is due, and that the Comptroller's published guidance does not say if a return is mandatory. Confirm with the Comptroller. | Payments of $10,000 or more must be made electronically. |
| Massachusetts | Yes, for most tax types, even when no tax is due. | Electronic filing and payment are mandatory for sales and use tax, with a narrow exception for some businesses registered before September 1, 2003 whose combined liability stays under $5,000 a year. A paper return that must be e-filed will not be processed. |
| Michigan | Yes, even if no tax is due. | Accelerated filers (liability of $720,000 or more in either sales or use tax in the prior year) must pay electronically. |
| Minnesota | Yes. File a zero return if you had no taxable sales. | Electronic payment required once you have paid more than $10,000 of any one tax in the previous fiscal year. Paying another way can bring a 5% penalty. |
| Mississippi | Yes. A return for every reporting period, entering a zero on the total tax due line. | The Department requests electronic filing and requires it in some cases, such as when you have more than one sales tax account or business location. |
| Missouri | Yes. Every business with a sales tax license, even with no sales. | Required for three or more locations and for quarter-monthly payers, who average $15,000 or more of state tax a month in at least six of the previous 12 months. Other sellers may use paper. |
| Nebraska | Yes. A zero return must be filed by the due date. | All retailers may e-file. Retailers approved for a combined return, or required to pay electronically, must e-file. Electronic payment can be required from taxpayers whose annual payments exceed a threshold, currently $5,000. |
| Nevada | Yes. A return must be filed even if no tax liability exists. | Payments of $10,000 or more must be made electronically. |
| New Jersey | Yes. An ST-50 every quarter. Zero monthly payments cannot be filed. | All returns must be filed electronically. Prior-year liability of $10,000 or more in any one tax requires all New Jersey taxes to be paid by EFT. |
| New Mexico | Yes. File for every period even with no receipts. A minimum $5 penalty applies even if no tax is due. | Required if your average monthly gross receipts tax liability was $1,000 or more in the preceding calendar year. |
| New York | Yes. A late return with no tax due still carries a $50 penalty. | Required for most vendors: you must use Sales Tax Web File if subject to the corporation tax e-file mandate, or if you prepare your own returns, use a computer to do it, and have broadband access. |
| North Carolina | Yes. Enter 0.00 on the return. | Not stated as required in our guide. Payment by the online system, ACH debit or credit, phone, or mail. |
| North Dakota | Yes. File the return indicating that no taxable sales or reportable purchases were made. | Monthly filers, those at or above $333,000 in the prior year, must file electronically. |
| Ohio | Yes, even with no sales or no tax owed. | Electronic filing required for all sales and use tax filers. EFT mandatory once liability exceeds $75,000 in a calendar year. |
| Oklahoma | Yes, even when no tax is due. | Electronic filing is the default for registrants who began reporting after June 1, 2007, unless the Commission grants a 12-month exception. Permits averaging $2,500 or more per month must participate in the electronic data interchange program. |
| Pennsylvania | Yes, whether or not you had taxable transactions. | Return is filed electronically and paper PA-3 forms are not available for download. Payments of $1,000 or more must be electronic. |
| Rhode Island | Yes. A return for every period, even with no sales. | Larger business registrants, meaning combined annual liability of $5,000 or more or annual gross income over $100,000, must file and pay electronically. |
| South Carolina | Yes. Enter 0 on lines 1 and 3. | Electronic filing and payment required when liability is $15,000 or more per filing period. |
| South Dakota | Yes. File each period even with no business. The $10 minimum late penalty applies even if no tax is due. | Optional. EPath supports electronic filing and payment, and paper returns are accepted. Electronic returns are due the 20th and electronic payments the 25th. |
| Tennessee | Yes, for every period. | All returns and payments must be submitted electronically through TNTAP (Department help article SUT-8). |
| Texas | Yes. File in Webfile or by TeleFile. | Based on the prior state fiscal year: $10,000 or more requires electronic payment, $50,000 or more also requires electronic filing, and $500,000 or more requires TEXNET. |
| Utah | Yes. Every active account, every period, even when activity is zero. | Sales and use tax returns must be filed electronically in TAP. Monthly filers with annual sales tax liability of $96,000 or more must pay by EFT. |
| Vermont | Yes, for every due date, except authorized occasional filers. | Required for multiple locations, more than $100,000 remitted the prior calendar year, or sales subject to local option tax. Other single-location filers may use paper. |
| Virginia | Yes, every period. The late penalty applies even when no tax is owed. | Sales tax must be filed and paid electronically unless you have an approved waiver. |
| Washington | Yes. File through My DOR, Express File, or by phone. | Mandatory e-file and e-pay. Paper filing, check, or cash only with a waiver. |
| Washington DC | Yes. Every period, even if no tax is due. Enter zero on the total amount due line. | Payments over $5,000 for a period must be made electronically. |
| West Virginia | Yes. Enter 0 on lines 8 and 12 of the CST-200CU. | Taxpayers who paid more than $25,000 in the prior tax year must file and pay electronically. |
| Wisconsin | Yes, for every reporting period. | The guide says Wisconsin requires electronic filing. Sellers who cannot file electronically can request a waiver. |
| Wyoming | Yes. Check the box for no sales or taxes to report and sign the return. | Optional. WYIFS is available, and the Department also accepts paper returns. |
How to avoid penalties
The tables point to the same habits in almost every state.
- File every period, even with no sales. Most guides say a return is required regardless of activity, and a late zero return still draws a penalty in several states.
- Know your assigned frequency and due date. The state sets your schedule, and it can change. Check your registration notice and the state's calendar, or see our sales tax due dates page.
- Use the state's portal, and enroll early. Electronic filing and payment thresholds are easy to cross without noticing, and Minnesota and Texas say they notify you when a requirement applies.
- File and pay on time to keep your discount. Where a state offers one, a late return or late payment forfeits it.
- Pay by the required method. Several states add a penalty for paying by check when electronic payment is required.
- Ask for a waiver when you have a real reason. The guides for Alabama, California, Connecticut, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Nevada, New York, North Dakota, Oklahoma, South Carolina, Utah, Virginia, Washington, Washington DC, West Virginia, Wisconsin, and Wyoming describe some form of penalty relief, usually for reasonable cause and often with documentation. South Carolina, Connecticut, and Kansas do not waive interest, Kentucky calls its interest not waivable, and Louisiana says interest generally cannot be waived.
- Register before you file. A state permit or account comes first. See what a sales tax permit is.
Filing in more than one state?
Every state adds its own portal, form, due date, and penalty schedule, as the tables above show. A seller registered in five states has five calendars to keep straight and five ways to be late.
Kintsugi monitors your sales for free so you can see where you have crossed a threshold. When you register, Kintsugi's sales tax filing software prepares and files your returns on each state's schedule and remits the payment. Filing starts at $75 per filing or registration, with no per-state subscription. See pricing or book a demo.
Frequently asked questions
Which states offer a discount for filing sales tax on time?
Our guides describe a timely-filing discount or compensation in 25 of the 46 states. Twenty-four state a rate: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nebraska, Nevada, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Utah (monthly filers only), Wisconsin, and Wyoming. Kentucky and Virginia describe a discount without stating the amount. Colorado ended its state service fee on January 1, 2026. See the discount table above for rates and conditions.
What is the penalty for filing a sales tax return late?
It depends on the state. California states 10% of the tax due, Texas charges $50 for each late report plus 5% or 10% for late payment, and Washington assesses 9%, rising to 19% and then 29%. Arizona, Georgia, Hawaii, Idaho, Massachusetts, Michigan, Missouri, New Jersey, North Carolina, North Dakota, Pennsylvania, South Carolina, Tennessee, Vermont, Washington DC, West Virginia, and Wisconsin add a percentage each month up to a 25% cap. See the penalty table for every state.
Do I have to file a sales tax return if I had no sales?
In 44 of the 46 states, our guides say yes. Maryland's guide says the Comptroller's published guidance does not state whether a return is mandatory when you had no sales, and Arkansas's guide does not say whether its no-activity return is mandatory. A late zero return still carries a minimum penalty in Florida, Kentucky, New Mexico, New York, South Dakota, Texas, Vermont, Virginia, and Wyoming.
Which states require electronic filing?
Alabama, Connecticut, Indiana, Kansas, Kentucky, Maine, Massachusetts, New Jersey, Ohio, Tennessee, Utah, Virginia, Washington, and Wisconsin are described as requiring electronic filing for all filers, some with waivers or narrow exceptions. Colorado, Florida, Hawaii, Iowa, Missouri, New Mexico, Rhode Island, Texas, Vermont, and West Virginia phase in or set thresholds by prior-year sales, liability, tax paid, or filing frequency. South Dakota and Wyoming leave electronic filing optional. Other states require electronic payment once payments cross a threshold. See the third table for each state's rule.
Can I get a late filing penalty waived?
Some states allow it. The guides for Alabama, California, Connecticut, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Nevada, New York, North Dakota, Oklahoma, South Carolina, Utah, Virginia, Washington, Washington DC, West Virginia, Wisconsin, and Wyoming describe penalty relief, usually for reasonable cause. South Carolina, Connecticut, and Kansas do not waive interest, Kentucky's interest is not waivable, and Louisiana says interest generally cannot be waived. Ask the state agency how to request relief for your situation.
Sources
Each state's figures come from the how-to-file guide linked in the tables, which cites the state tax agency's own pages and lists the date we checked them. The figures in this comparison were checked September 29, 2026. For the portal, return form, and due date in each of these states, see our state-by-state guide to filing sales tax online. To see due dates for every state in one calendar, use our sales tax due dates page.
This article is educational information, not tax advice. Penalty rates, interest rates, and discount schedules change, so confirm current figures with the state tax agency before you file.
