What are the penalties for late payment or filing of taxes in Texas?

In Texas, failing to pay or file taxes by the due date can result in penalties. Late payment penalties start at 4.5% of the unpaid tax, increasing by 1% each month, capping at 12%. Additionally, an interest rate of 5% per annum may apply to the unpaid tax amount until fully paid. Failure to file penalties amount to 5% of the unpaid tax per month, also maxing at 12%. If both payment and filing are late, penalties will be assessed separately. The minimum penalty for late filing is $50 or 5% of the tax due per report, depending on which is greater. To avoid these penalties, it is crucial to pay and file taxes on time or request an extension if needed.