Penalty and Interest Charges

Penalty and Interest Charges

If you do not respond to the first notice, you will receive an assessment notice that will include substantial penalty and interest charges. Under Maryland law, the assessment notice is presumed correct, and you would be required to file an appeal and request a hearing within 30 days of the assessment in order to dispute the amount due. Collection procedures will begin after the expiration of the 30-day period to appeal the assessment.

Your assessment will depend on the amount of taxes that we believe you owe. Maryland law requires us to charge interest at the annual rate of 10% during calendar year 2021, 9.5% during calendar year 2022, 9% during calendar year 2023 and 10.0075% in calendar year 2024. Interest will be calculated from the date the return was originally due. Penalty charges for late payments can be up to 25 percent of the amount of tax you owe.

If you do not settle your account promptly after you receive an assessment notice, legal action will begin which may include filing a property lien or attaching your bank accounts and salary.

You can file an appeal within 30 days of an assessment.

For assistance in calculating interest for unpaid taxes use the Maryland Unpaid Tax Interest Calculator.