{"id":18022,"date":"2026-02-23T11:06:07","date_gmt":"2026-02-23T18:06:07","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/?page_id=18022"},"modified":"2026-03-23T14:36:57","modified_gmt":"2026-03-23T20:36:57","slug":"penalty-interest-rates","status":"publish","type":"page","link":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/penalty-interest-rates\/","title":{"rendered":"Penalty Interest Rates"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”default” custom_margin=”0px||||false|false” custom_padding=”0px||0px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ _module_preset=”default” use_background_color_gradient=”on” background_color_gradient_stops=”#ffffff 0%|#dedede 100%” background_color_gradient_start=”#ffffff” background_color_gradient_end=”#dedede ” width_tablet=”” width_phone=”” width_last_edited=”on|tablet” custom_margin=”0px||||false|false” custom_padding=”4px||4px||true|false” background_color_gradient_stops_tablet=”#ffffff 0%|#dedede 100%” background_color_gradient_stops_phone=”#ffffff 0%|#dedede 100%” border_width_all=”1px” border_color_all=”#c9c9c9″ global_module=”210″ saved_tabs=”all” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_dmb_breadcrumbs font_icon=”5||divi||400″ home_icon=”||divi||400″ use_home_text=”on” home_text=”All NM Taxes” use_home_url=”on” home_url=”\/all-nm-taxes\/all-nm-taxes\/” _builder_version=”4.16″ _module_preset=”default” body_text_color=”#282728″ separator_text_color=”#282728″ link_text_color=”#000000″ custom_padding=”0px||0px|15px|false|false” global_colors_info=”{}”][\/et_pb_dmb_breadcrumbs][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ specialty=”on” _builder_version=”4.16″ _module_preset=”c15d8663-17d8-453a-bfd0-2280d44320fa” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”Explore Section & Events” use_icon=”on” font_icon=”||divi||400″ _builder_version=”4.16″ _module_preset=”7b5e95ba-231a-438c-8dd9-6676746c29e6″ global_colors_info=”{}”][\/et_pb_blurb][et_pb_sidebar area=”et_pb_widget_area_5″ _builder_version=”4.7.7″ _module_preset=”50d7f88b-470d-49c8-b370-96c4a9bca4df” custom_margin_tablet=”10px||||false|true” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”10px|10px||10px|false|false” global_module=”450″ saved_tabs=”all” locked=”off” global_colors_info=”{}”][\/et_pb_sidebar][\/et_pb_column][et_pb_column type=”3_4″ specialty_columns=”3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_row_inner _builder_version=”4.16″ _module_preset=”default” background_color=”#ffffff” custom_padding=”0px|20px||20px|false|false” global_colors_info=”{}”][et_pb_column_inner saved_specialty_column_type=”3_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_post_title meta=”off” _builder_version=”4.16″ _module_preset=”default” title_font=”|300|||||||” title_font_size=”50px” title_letter_spacing=”-3px” locked=”on” global_colors_info=”{}”][\/et_pb_post_title][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” locked=”off” global_colors_info=”{}”]<\/p>\n

Penalty<\/strong> is calculated at 2% per month or partial month to a maximum of 20% on the unpaid principal of tax due.<\/p>\n

Interest<\/strong> accrues daily on the unpaid principal of tax due and can change on a quarterly basis.<\/p>\n

The negligence penalty<\/strong> for late filing or late payment applies if you file late and owe tax, or if you do not pay your tax when due. The penalty is 2% of the tax due for each month or part of a month the return is not filed or the tax is not paid, to a maximum of 20%. This penalty applies when your failure to file or pay is because of negligence or disregard of the rules and regulations but without intent to defraud.<\/p>\n

Current Interest Rates<\/strong><\/h2>\n

Interest accrues on tax that isn\u2019t paid on or before the due date of your return even if you receive an extension of time to file. Interest by law cannot be waived.<\/p>\n

Prior to January1, 2008, interest is calculated at the statutory rate of 15% per year and is computed on a daily basis. Beginning January1, 2008, interest is calculated on a daily basis at the rate set for individual income tax purposes by the U.S. Internal Revenue Code (IRC).<\/p>\n

Table of Effective Interest Rates<\/h3>\n

[\/et_pb_text][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” hover_enabled=”0″ locked=”off” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n
Period<\/strong><\/span><\/h6>\n<\/td>\n
\n
Annual Rate<\/strong><\/span><\/h6>\n<\/td>\n
\n
Daily Rate<\/strong><\/span><\/h6>\n<\/td>\n<\/tr>\n
April 1, 2026 – June. 30, 2026
<\/strong><\/td>\n		6%<\/strong><\/td>\n0.016438356%
<\/strong><\/td>\n<\/tr>\n
January 1, 2025 – March 31, 2026<\/strong><\/td>\n7%<\/strong><\/td>\n0.019178082%<\/strong><\/td>\n<\/tr>\n
January 1, 2024 – December 31, 2024<\/strong><\/td>\n8%<\/strong><\/td>\n0.021857923%<\/strong><\/td>\n<\/tr>\n
October 1, 2023 \u2013 December 31, 2023<\/strong><\/td>\n8%<\/strong><\/td>\n0.021917808%<\/strong><\/td>\n<\/tr>\n
January 1, 2023 \u2013 September 30, 2023<\/strong><\/td>\n7%<\/strong><\/td>\n0.019178082%<\/strong><\/td>\n<\/tr>\n
October 1, 2022 \u2013 December 31,2022<\/strong><\/td>\n6%<\/strong><\/td>\n0.016438356%<\/strong><\/td>\n<\/tr>\n
July 1, 2022 – September 30,2022<\/strong><\/td>\n5%<\/strong><\/td>\n0.013698630%<\/strong><\/td>\n<\/tr>\n
April 1, 2022 \u2013 June 30, 2022 <\/strong><\/td>\n4%<\/strong><\/td>\n0.010958904%<\/strong><\/td>\n<\/tr>\n
January 1, 2021 \u2013 March 31, 2022<\/strong><\/td>\n3%<\/strong><\/td>\n0.008219178%<\/strong><\/td>\n<\/tr>\n
July 1, 2020 \u2013 December 31, 2020<\/strong><\/td>\n3%<\/strong><\/td>\n0.008196721%<\/strong><\/td>\n<\/tr>\n
January 1, 2020 \u2013 June 30, 2020<\/strong><\/td>\n5%<\/strong><\/td>\n0.013661202%<\/strong><\/td>\n<\/tr>\n
July 1, 2019 \u2013 December 31, 2019<\/strong><\/td>\n5%<\/strong><\/td>\n0.013698630%<\/strong><\/td>\n<\/tr>\n
January 1, 2019 \u2013 June 30, 2019<\/strong><\/td>\n6%<\/strong><\/td>\n0.016438356%<\/strong><\/td>\n<\/tr>\n
April 1, 2018 \u2013 December 31, 2018<\/strong><\/td>\n5%<\/strong><\/td>\n0.013698630%<\/strong><\/td>\n<\/tr>\n
January 1, 2017 \u2013 March 31, 2018<\/strong><\/td>\n4%<\/strong><\/td>\n0.010958904%<\/strong><\/td>\n<\/tr>\n
April 1, 2016 \u2013 December 31, 2016<\/strong><\/td>\n4%<\/strong><\/td>\n0.010928962%<\/strong><\/td>\n<\/tr>\n
January 1, 2016 \u2013 March 31, 2016<\/strong><\/td>\n3%<\/strong><\/td>\n0.008196721%<\/strong><\/td>\n<\/tr>\n
January 1, 2013 \u2013 December 31, 2015<\/strong><\/td>\n3%<\/strong><\/td>\n0.008219178%<\/strong><\/td>\n<\/tr>\n
January 1, 2012 \u2013 December 31, 2012<\/strong><\/td>\n3%<\/strong><\/td>\n0.008196721%<\/strong><\/td>\n<\/tr>\n
October 1, 2011 \u2013 December 31, 2011<\/strong><\/td>\n3%<\/strong><\/td>\n0.008219178%<\/strong><\/td>\n<\/tr>\n
April 1, 2011 \u2013 September 30, 2011<\/strong><\/td>\n4%<\/strong><\/td>\n0.010958904%<\/strong><\/td>\n<\/tr>\n
January 1, 2011 \u2013 March 31, 2011 <\/strong><\/td>\n3%<\/strong><\/td>\n0.008219178%<\/strong><\/td>\n<\/tr>\n
April 1, 2009 \u2013 December 31, 2010 <\/strong><\/td>\n4%<\/strong><\/td>\n0.010958904%<\/strong><\/td>\n<\/tr>\n
January 1, 2009 \u2013 March 31, 2009 <\/strong><\/td>\n5%<\/strong><\/td>\n0.013698630%<\/strong><\/td>\n<\/tr>\n
October 1, 2008 \u2013 December 31, 2008 <\/strong><\/td>\n6%<\/strong><\/td>\n0.016393442%<\/strong><\/td>\n<\/tr>\n
July 1, 2008 \u2013 September 30, 2008 <\/strong><\/td>\n5%<\/strong><\/td>\n0.013661202%<\/strong><\/td>\n<\/tr>\n
April 1, 2008 \u2013 June 30, 2008<\/strong><\/td>\n6%<\/strong><\/td>\n0.016393442%<\/strong><\/td>\n<\/tr>\n
January 1, 2008 \u2013 March 31, 2008 <\/strong><\/td>\n7%<\/strong><\/td>\n0.019125683%<\/strong><\/td>\n<\/tr>\n
Prior to January 1, 2008 <\/strong><\/td>\n15%<\/strong><\/td>\n0.041%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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The formula for calculating daily interest is:<\/strong><\/h2>\n

Tax due \u00d7 daily interest rate for the quarter \u00d7 number of days late = interest due.<\/strong><\/p>\n

For example, say a taxpayer owes $300 for the 3rd<\/sup> quarter of 2025, due July 15, 2025. The daily rate for the 3rd<\/sup> quarter of 2025 is 0.019178082%. If the tax-due date is July 15, 2025, and the taxpayer pays on July 30, 2025, the payment is 15 days late \u2013 using the formula \u2013 $300 x <\/strong>0.019178082%x 15 = $0.58<\/strong>, the taxpayer owes an additional $0.58 in interest.<\/p>\n

International Tax Fuel Agreement Interest Rate<\/strong><\/h2>\n

Taxpayers who are liable for interest under the International Fuel Tax Agreement (IFTA) may be subject to a different rate of interest calculated on a monthly basis. For more information, please visit the IFTA, Inc. web site at http:\/\/iftach.org<\/a><\/strong> or contact a department representative at 1-888-683-4636 prompt 6.<\/p>\n

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Penalty is calculated at 2% per month or partial month to a maximum of 20% on the unpaid principal of tax due. Interest accrues daily on the unpaid principal of tax due and can change on a quarterly basis. 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