What is the penalty for filing my state tax return late?

The penalty for filing your state tax return late in Oregon includes both interest and a late payment penalty. The interest rate is set annually and accrues on the unpaid tax balance from the original due date until the tax is paid in full. The late payment penalty is 5% of the unpaid tax amount for the first month, with an additional 1% charged per month thereafter, up to a maximum of 25%. However, if you timely filed your return but did not pay the full tax due, the penalty is only 1% per month on the unpaid amount. It is important to note that penalties and interest can significantly increase the amount owed, so it is best to file and pay on time to avoid these additional charges.