Can I get fined for filing my taxes late in California? Not paying? What to know
As Tax Day draws nearer, some California taxpayers are scrambling to file their 2025 returns.
You can face penalties for failing to file your taxes correctly or pay on time, with fines based on how much money you owe.
Here are the most common kinds of tax penalties, and how to avoid them:
When are taxes due in California?
In California, the deadline to file both state and federal income tax returns for the 2025 tax year is Wednesday, April 15.
Taxpayers who need more time can get a six-month filing extension — but any taxes owed must still be paid by the April deadline to avoid penalties and interest.
Although the California Franchise Tax Board grants this extension to state taxpayers automatically, you need to request a filing extension from the Internal Revenue Service.
How can I avoid tax penalties in California?
According to the California Franchise Tax Board, you can face penalties and fees when you:
- Don’t file on time
- Don’t pay on time
- Don’t pay enough estimated tax
- Don’t have enough taxes withheld from your paycheck
- Don’t pay electronically when required
- Make a “dishonored payment” such as a bounced check or insufficient funds
The IRS said taxpayers can also face penalties if they fail to prepare and file accurate returns or provide accurate and timely information returns.
What happens if I don’t file my taxes or file late?
If you don’t file your state tax return by the deadline, you can face a “delinquent filing” penalty, according to the California Franchise Tax Board.
As a result, you’ll be fined 5% of the amount you owe each month starting from the “original due date of your tax return,” the state tax board said.
“The maximum penalty is 25%,” the California Franchise Tax Board said.
If you owe $540 or less in state taxes, you’ll be required to pay $135 or 100% of the amount due, “whichever amount is less,” the state tax board said.
Filling federal tax returns late — or not at all — also results in a penalty of 5% of the tax due, multiplied by 5% per month, the IRS said.
If your return is more than 60 days late, you can be charged up to $525, the federal tax agency said.
What’s the penalty if I pay my taxes late?
You can be penalized if you fail to pay the total amount of taxes you owe California in time, the state Franchise Tax Board said.
You’ll be charged 5% of the unpaid tax as well as 0.5% of the unpaid tax for “each month or parts of the month it’s unpaid,” not exceeding 40 months, the state tax board said.
According to the IRS, the penalty for failing to pay your federal taxes is 0.5% of your unpaid taxes for each month the tax remains unpaid.
“The penalty won’t exceed 25% of your unpaid taxes,” the IRS said, and the federal agency will lower that rate to 0.25% if a payment plan is in place.
If you don’t pay the taxes you owe in 10 days after getting a notice from the IRS, the penalty jumps up to 1% per month
What happens if my check bounces?
According to the California Franchise Tax Board and the IRS, you can be fined if your check bounces or you don’t have enough money in your bank account to cover your tax payment.
If your state tax payment was less than $1,250, you’ll owe $25 or the payment amount — whichever is less.
If you have an unpaid balance of $1,250 or more, you’ll be fined 2% of the payment amount.
The same penalties apply to bad checks or electronic payments for federal taxes, the IRS said.
Are there penalties for withholding errors?
The state of California also fines taxpayers who didn’t withhold enough from their paychecks, with rates varying by offense.
For instance, you could be fined $500 for failing to withhold tax from the sale of real property, the state Franchise Tax Board said.
If you’re caught underpaying your federal taxes, you can be fined 20% of the amount you underpaid, the IRS said.
