Is there a penalty for late payment or underpayment of state taxes?

Yes, there is a penalty for late payment or underpayment of state taxes in Rhode Island. If you fail to make your tax payment on time or do not pay the full amount owed, you may be subject to penalties based on the amount of tax due. The penalty for late payment is calculated based on a percentage of the unpaid tax amount and will accrue monthly until the tax is paid in full. Additionally, interest will be charged on the unpaid balance at a rate defined by Rhode Island law. To avoid penalties and interest, it is essential to file and pay your state taxes on time and in full.