If you’re having difficulty paying your taxes, the Department of Revenue will work with you to arrange a payment agreement and avoid legal consequences. (There is a separate system for setting up payment agreements for Real Estate Taxes.)
All payment agreements require a 20% down payment and have flexible term limits. The maximum length of a payment agreement is 60 months, but shorter agreements mean fewer—even zero—penalties.
All payment agreements require that you also file and pay your current taxes. You must pay your overdue taxes in addition to any taxes you normally owe.
There are two payment agreement types based on your previous agreement history:
- Preferred – If it’s your first time with delinquent taxes, or you have one previous, completed payment agreement you will receive maximum discounts on penalties, and up to 60 months to pay.
- Standard – All other taxpayers will receive a discount on penalties and have up to 48 months to pay.
If you don’t honor the payment agreement, you must pay accrued interest and penalty charges, and you may face legal action and fines.
You can estimate your down payment and monthly payments using an agreement calculator. Other payment term options may be possible.