Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
Maryland Taxes
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Interest and Penalty Charges

If the Maryland estate tax liability is not paid on or before the due date of the estate tax return, Maryland law provides for the assessment of interest and late payment penalty. There is also a penalty for undervaluation of assets. For additional information regarding tax compliance see the Individual Tax Compliance section.

Interest Rate

The interest rate is set annually and applies to late payments, including an increase in the tax that is due to a change resulting from action taken by IRS or the estate, and to payments made under an alternative payment schedule.

Annual Interest Rate

Calendar Year Refund Unpaid Tax
2014 13% 13%
2013 13% 13%
2012 13% 13%
2011 13% 13%
2010 13% 13%
2009 13% 13%
2008 13% 13%
2007 13% 13%
2006 4% 13%
2005 3% 13%
2004 4% 13%
2003 5% 13%
2002 8% 13%
2001 8% 13%

 

Penalty Charges

A penalty not exceeding 10% of the unpaid tax will be assessed if the tax is paid after the due date. A penalty of 25% will be assessed for failure to comply with a notice and demand for a return. In addition, the Comptroller shall assess a penalty of 25% of the amount of the underpayment of tax which is attributable to any substantial estate tax valuation understatement. A substantial estate tax valuation understatement occurs if the value of any property claimed, or should have been claimed, is 60% or less of the amount determined to be the correct amount of that valuation. The underpayment penalty cannot be assessed unless the portion of the underpayment attributable to substantial estate tax valuation is greater than $5,000.



 
Links for Payment Information
Individual Tax Types
Estate and Inheritance Tax
Payment Information
  Payment Methods
  Interest and Penalty Charges
 
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