The New Jersey Division of Taxation has announced a reduction in the interest rate on outstanding tax balances for the year 2025. Starting from January 1, 2025, the interest rate on unpaid tax balances will be set at 10.75%. This is a decrease from the current interest rate of 11.5%, which applies for the period from January 1, 2024, to December 31, 2024.
This reduction is part of the state’s ongoing efforts to ease the burden on taxpayers who may have outstanding balances. It provides an opportunity for individuals and businesses to pay off their taxes at a lower cost in 2025.
The change was officially announced in the New Jersey Division of Taxation’s Technical Bulletin No. TB-21(R), dated December 6, 2024. Taxpayers should take note of the new rate for the coming year, as it will impact the interest applied to any outstanding balances they may owe to the state.
For more details on how this change may affect your tax obligations, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com
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