New Mexico Tax Department Updates Penalty, Interest Rates for Unpaid State Taxes

The New Mexico Taxation and Revenue Department updated its published penalty and interest rate guidance, including the quarterly interest rate applicable to unpaid tax liabilities. For the period July 1 through Sept. 30, 2026, interest accrues at an annual rate of 7 percent (0.019178082% daily). Interest accrues daily on unpaid tax balances and cannot be waived by statute, even if an extension of time to file is granted. The negligence penalty for late filing or late payment applies at 2 percent per month or partial month, up to a maximum of 20 percent of the unpaid tax, when the failure ...