A state tax penalty occurs after a taxpayer fails to live up to the requirements of the state tax system. If an individual, group or corporation fails to file, is late in filing or underpays, a state tax penalty is the result. The amount and the type of state tax penalty differs significantly from state to state. There is no type of uniformity across the United States at the current time. This is not surprising as the states do not all require payment for the same taxes. Some lack property tax; others do not have a sales tax. A state tax penalty, in general, however, consists of different types. These include basic interest on the tax dated from the due date. The interest varies from state-to-state. A state tax penalty also consists of a late payment fee and a failure to pay penalty. There may also be a failure to file penalty. The amount charged will vary from state-to-state. There is usually a maximum and a minimum state tax penalty in place. A lawyer can help you work with the state authorities to arrange for an abatement or an agreement to manage the tax debt and the accruing penalties.