Queen Anne’s Property Tax 2026 rates hit homeowners as the county finalizes the 2026 property tax reassessment timeline, prompting many to check their property tax assessment Queen Anne details online. Residents can use the Maryland Department of Assessments and Taxation portal to run a parcel number property tax lookup and view Maryland property tax rates 2026 for their specific address. The Prince George’s County tax collection schedule mirrors the due dates, so knowing the property tax payment deadline schedule helps avoid tax delinquency penalties Washington DC style. For those in historic districts, historic district tax exemptions and historic home tax abatement offer immediate savings, while the Queen Anne home tax relief program adds extra support for seniors and veterans.
Queen Anne’s Property Tax relief options also include the Maryland homestead tax credit, senior citizen property tax exemption, and disabled property tax exemption criteria, which can lower the bill dramatically. Property owners suspecting errors should follow the property tax appeal process guide and download property tax appeal forms PDF to start the property tax assessment appeal steps. A quick search of property tax lien search records or property tax record lookup can reveal outstanding issues before the property tax due dates 2026. Contact the local tax collector at (410) 819-4160 or email sdat.qaco@maryland.gov for direct assistance and up‑to‑date local tax collector contact information.
Search Queen Anne’s County Property Tax
Queen Anne’s County homeowners can pull up current property tax records through the State Department of Assessments and Taxation public search portal. The portal accepts searches by street address, owner name, or parcel identification number. Each lookup returns the latest assessment value, exemption amounts, tax district code, and full billing history for one property.
To start a record search, open the Real Property Data Search page at https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx on any web browser. Pick a search type from the drop down menu. Type the matching street number and name, then press the search button.
The result page shows a list of matching properties with the parcel number, owner, and street address. Click the parcel number link to open the full record. The full record page shows the current assessment, credit amounts, tax status, and any pending appeal.
- Go to https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx
- Pick a search method (Address, Parcel ID, or Owner Name)
- Type the required data and press Search
- Click the matching parcel number to open the full record
- Review assessment value, exemptions, credits, and tax status
- Print or save the record for personal files or appeal use
Maryland Property Tax Rates and Assessment Cycle
Queen Anne’s County sits on a three year reassessment cycle set by the State of Maryland. Assessors review one third of all properties each year. The reassessment value reflects the market value as of the date of valuation. New values take effect at the start of the next tax year on July 1.
The State sets a constant property tax rate for real property. Counties and municipalities add a local rate on top of the State rate. The total tax rate per 100 dollars of assessed value is the sum of State, county, and town rates for each address. Owners in town limits pay both the county and town portions.
| Taxing Authority | Type of Rate | Source of Revenue |
|---|---|---|
| State of Maryland | Constant statewide rate | Education, transportation, and state programs |
| Queen Anne’s County | County rate per 100 dollars | Public safety, schools, county services |
| Incorporated Towns | Town rate per 100 dollars | Local roads, police, water, sanitation |
Tax bills use the new assessment value starting July 1 each year. Property owners who disagree with the new value can file an appeal during a 90 day window. The appeal window opens the day the reassessment notice is mailed. Late appeals lose the right to challenge for that cycle.
Property Tax Payment Deadlines and Collection Schedule
Queen Anne’s County property tax bills split the annual amount into two equal halves. The first half covers July 1 through December 31. The second half covers January 1 through June 30. Each half has its own payment deadline and late fee rule.
The State sets the master deadline schedule each year. Tax bills go out by July 1 for the first half and January 1 for the second half. Owners have 30 days from the bill date to pay each half without penalty. Late payments trigger a one time late fee plus monthly interest on the unpaid balance.
| Tax Period | Bill Mail Date | Payment Deadline | Late Fee | Monthly Interest |
|---|---|---|---|---|
| First Half (Jul Dec) | July 1 | July 31 | Yes | Added on day 31 |
| Second Half (Jan Jun) | January 1 | January 31 | Yes | Added on day 31 |
| Annual Option | July 1 | July 31 | Yes | Added on day 31 |
Tax delinquency penalties Washington DC style rules do not apply in Maryland. Maryland uses a flat late fee plus simple interest on the unpaid tax amount. Interest accrues each month until the full balance is paid. Delinquent accounts may face a tax lien sale after 18 months of non payment.
Homestead Tax Credit and Standard Exemptions
The Maryland homestead tax credit limits annual assessment growth on a primary residence. The credit caps the yearly increase in assessed value at a small percent set by the State. The cap protects owners from sudden market spikes in home value. The credit stays in place for as long as the owner lives in the home.
Homeowners must file a one time homestead credit application with the State Department of Assessments and Taxation. The application asks for the property address, owner name, and date the owner moved in. Filing the form locks in the credit for future tax years. No renewal is required each year.
- Primary residence owners qualify for the credit
- Rental and second homes do not qualify
- Application goes to the State Department of Assessments and Taxation
- Credit applies from the next tax year after filing
Other standard exemptions include a county property tax credit for certain nonprofits and a State credit for disabled veterans. The State veteran credit removes a set amount of assessed value from the bill each year. Disabled veterans with a 100 percent rating get the full State credit amount.
Senior, Veteran, and Disabled Tax Exemptions
Queen Anne’s County offers property tax exemptions for senior citizens, disabled residents, and veterans. Each exemption has its own age, income, or service requirement. The State Department of Assessments and Taxation processes all exemption applications. County tax bills reflect approved exemptions starting the next tax year.
Senior citizen property tax exemption criteria vary by local jurisdiction. Most Maryland counties set the age threshold at 65 or older. Some counties add an income cap for the senior credit. Veterans qualify for an exemption based on military service, disability rating, or surviving spouse status.
| Exemption Type | Who Qualifies | Application Form | Processing Office |
|---|---|---|---|
| Senior Citizen Credit | Owners age 65 plus | State form | SDAT Queen Anne’s Office |
| Disabled Veteran Credit | Vets with service connected disability | State form | SDAT Queen Anne’s Office |
| Disabled Resident Credit | Owners with qualifying disability | State form | SDAT Queen Anne’s Office |
| Surviving Spouse Credit | Spouse of fallen service member | State form | SDAT Queen Anne’s Office |
Property tax appeal forms PDF copies are available on the SDAT website. The veteran property tax assistance program helps former service members apply for the full credit. Owners must submit proof of age, disability, or military service with the application. Approval takes 60 to 90 days from the receipt date.
Historic District Property Tax Relief Programs
Historic district tax exemptions in Maryland give a property tax break to owners of certified historic properties. The State historic preservation office reviews each property for historic value. Approved properties get a credit on the rehabilitation work and on the property tax bill.
The historic home tax abatement program covers work that meets the Secretary of the Interior’s Standards for Rehabilitation. Owners must submit the work plans before starting any project. The completed work must pass a final review by the State historic preservation office. Approved work qualifies for a credit on the State portion of the tax bill for a set number of years.
- Property must sit in a historic district or be a stand alone landmark
- Work must follow Secretary of the Interior standards
- Pre approval of the work plan is required
- Final review happens after the work is complete
- Credit applies to the State tax portion for up to 10 years
Queen Anne’s County contains several historic areas along the Eastern Shore. Owners in Centreville, Stevensville, and Kent Narrows may qualify for the program. The county historic preservation commission can help owners start the application process. Contact the county office for the local work plan review.
Property Tax Appeal Process and Required Steps
Property owners who disagree with a reassessment value can file a formal appeal with the State Department of Assessments and Taxation. The appeal must reach the office within 90 days of the reassessment notice date. Late appeals lose the right to challenge the value for that cycle.
The property tax assessment appeal steps begin with a review of the comparable sales in the area. Owners should gather recent sales data for similar properties within the same neighborhood. The appeal form asks for the requested value and a list of supporting sales. A hearing officer reviews the case and issues a decision.
- Review the reassessment notice for the deadline date
- Gather sales data for similar nearby properties
- Fill out the State appeal form (available on the SDAT website)
- Submit the form with sales support before the 90 day deadline
- Wait for a hearing date in the mail
- Present the case at the hearing or by written submission
- Receive a decision in the mail within 60 days
Property tax appeal process guide documents are available from the State Department of Assessments and Taxation website. The site has the form, a sample filled form, and a list of common errors. Owners can submit the appeal online, by mail, or in person at the Queen Anne’s County office. Help with the form is available by phone during office hours.
Property Tax Record Lookup and Document Access
Property tax record lookup tools are available on the State Department of Assessments and Taxation public portal. The portal shows the full tax history for any parcel in Queen Anne’s County. Records include the past 10 years of assessment values, exemption credits, and tax payments.
Owners can also pull up a copy of the property tax card through the portal. The tax card lists the lot size, building square footage, year built, and construction type. The data on the tax card is the basis for the assessment value. Errors in the tax card often lead to a successful appeal.
- Search by address, parcel ID, or owner name
- View the current and past assessment values
- View the credit and exemption amounts
- View the tax payment history
- Print a copy of the full record for personal use
The Queen Anne’s County tax collection office handles tax bill payments and late fee questions. The State Department of Assessments and Taxation handles the assessment value, exemptions, and appeals. Owners should contact the right office based on the type of question. The State office number is (410) 819-4160 for Queen Anne’s County.
Land Records and Deed Search in Queen Anne’s County
Land records and deed documents for Queen Anne’s County are kept by the Clerk of the Circuit Court. The Clerk runs the Land Records Division from the courthouse in Centreville. All property transfers, liens, and easements are recorded in the land records system. The records are open to the public for viewing and copying.
Online land record access is available through the Maryland Land Records network at https://www.mdlandrec.net. Users can search by name, document type, or recording date. Each document is available as a scanned image. Users can print or download the image for a small fee per page.
| Record Type | Search Field | Cost Per Page | Official Source |
|---|---|---|---|
| Deed | Grantor or Grantee name | Fee applies | Circuit Court Clerk |
| Mortgage | Borrower name | Fee applies | Circuit Court Clerk |
| Lien | Property address | Fee applies | Circuit Court Clerk |
| Plat | Subdivision name | Fee applies | Circuit Court Clerk |
The Clerk of the Circuit Court for Queen Anne’s County Land Records Division can help with record requests. The office phone number is (410) 758-1773. The office email is katherine.hager@mdcourts.gov. The main office sits at 100 Court House Square, Centreville, Maryland 21617. The mailing address is 200 N. Commerce Street, Centreville, MD 21617.
Rental Property Tax Considerations
Rental property tax in Queen Anne’s County follows the same rate rules as owner occupied homes. Landlords pay the State, county, and town rates based on the property location. The full assessed value applies since rental properties do not qualify for the homestead credit. Some rental properties may qualify for a property tax savings program based on use.
Owners of rental properties must report rental income on the State and federal tax returns. Property tax paid during the year is a tax deduction against the rental income. The deduction lowers the total tax bill for the landlord. Landlords should keep all property tax bills and receipts for the tax filing.
- Rental properties pay the full tax rate (no homestead credit)
- Property tax paid is a federal income tax deduction
- Property tax paid is a State income tax deduction
- Keep all tax bills and receipts for the tax filing
- New owners should file a new owner record with the State office
Property tax savings strategies for landlords include keeping the property well maintained, appealing the assessment when wrong, and claiming all legal deductions. The State appeals process works the same for rental properties as for owner occupied homes. Landlords can hire a property tax consultant for the appeal process.
Refund Eligibility and Payment Methods
Property tax refund eligibility depends on the reason for the refund. A refund applies when an owner pays the wrong amount, qualifies for a new credit, or wins an appeal. The State Department of Assessments and Taxation issues refunds for credit and appeal related refunds. The County tax collection office issues refunds for payment related refunds.
Owners who paid a tax bill that was later reduced must file a refund request. The request asks for the bill number, payment date, and refund reason. Supporting documents include the appeal decision, credit approval letter, or payment receipt. Refunds go out within 60 to 90 days from the request approval.
- Gather the bill number, payment receipt, and credit or appeal letter
- Fill out the State refund request form
- Submit the form with all supporting documents
- Wait for the refund review by the State office
- Receive the refund check in the mail within 60 to 90 days
Tax payments go out through the County collection office by mail, online, or in person. Online payments use a bank draft or credit card for a small fee. Mail payments go to the County Treasurer’s office with the bill stub. In person payments are accepted at the County office during business hours.
Property Tax Lien Search and Delinquency Issues
Property tax lien search tools help buyers check for unpaid tax bills before closing. A tax lien is a legal claim against a property for unpaid tax amounts. Liens must be paid off at closing or by the new owner after closing. The State Department of Assessments and Taxation records all tax liens in the land records system.
Tax delinquency penalties Washington DC style rules do not apply in Maryland. Maryland uses a flat late fee plus simple interest on the unpaid tax amount. Interest accrues each month until the full balance is paid. Delinquent accounts may face a tax lien sale after 18 months of non payment.
- Tax liens show up in the land records system
- Delinquent bills gain interest each month
- Tax lien sale happens after 18 months of non payment
- Buyers should check for liens before closing
- Sellers must pay off liens at closing
Owners facing a tax lien sale can stop the sale by paying the full amount. Payment plans are available for owners who cannot pay the full amount at once. The County Treasurer’s office can set up a payment plan based on the owner’s income and the tax amount owed. The plan must be in writing and approved by the County office.
Property Tax Assessment Timeline and Reassessment Cycle
The 2026 property tax reassessment timeline hit Queen Anne’s County as the State reviews properties on a three year cycle. One third of all properties get a reassessment each year. The reassessment value reflects the market value of the property on a fixed valuation date.
New values take effect at the start of the next tax year on July 1. Owners receive a reassessment notice by mail 90 days before the new value takes effect. The notice lists the prior value, the new value, and the appeal deadline. Owners who do not appeal accept the new value for the next three year cycle.
| Cycle Year | Group Being Reviewed | Notice Mail Date | New Value Effective |
|---|---|---|---|
| Year One | One third of all properties | April 1 | July 1 |
| Year Two | Next one third of properties | April 1 | July 1 |
| Year Three | Final one third of properties | April 1 | July 1 |
Owners can view the reassessment schedule on the State Department of Assessments and Taxation website. The site lists the cycle year for each property by parcel number. The site also has a sales comparison tool for owners who want to start the appeal process early. Sales data covers the past 24 months for the county.
Queen Anne Home Tax Relief Program
The Queen Anne home tax relief program offers extra support to seniors, veterans, and disabled residents on a fixed income. The program combines the State credits with county level support. Approved owners get a credit on the county portion of the tax bill. The credit amount depends on the owner’s income and the size of the tax bill.
Applicants must file a one time application with the County Treasurer’s office. The application asks for proof of income, age, or disability status. The County reviews each application and notifies the State office of the approval. The credit appears on the next tax bill after the approval date.
- Seniors age 65 plus on a fixed income qualify
- Disabled veterans with a service connected rating qualify
- Disabled residents with a qualifying medical condition qualify
- Application goes to the County Treasurer’s office
- Credit applies to the next tax bill after approval
The program works with the State homestead credit and other State exemptions. Owners who get the program credit can also get the homestead credit on the same property. The two credits stack to lower the total tax bill by a large amount. Owners should contact the County office for the current program rules and the application form.
Property Tax Survey for Queen Anne’s Neighborhood
Property tax survey Queen Anne’s neighborhood data is available on the State Department of Assessments and Taxation website. The survey shows the average tax bill for each neighborhood in the county. The data covers owner occupied homes, rental properties, and vacant land. The survey helps owners compare their tax bill to other homes in the area.
The survey also lists the tax district code, school district, and town status for each address. The town status controls the local tax rate portion. Owners inside town limits pay a town rate in addition to the county and State rates. Owners outside town limits pay only the county and State rates.
- Open the SDAT Real Property Data Search page
- Search by address, parcel ID, or owner name
- View the tax district code and town status on the record
- View the survey data for the matching neighborhood
- Compare the tax bill to other homes in the area
Owners who find that their tax bill is much higher than other homes in the area should file an appeal. The appeal asks for a value closer to the average for the neighborhood. Sales data from the past 24 months supports the appeal request. The hearing officer reviews the case and issues a decision within 60 days of the hearing date.
Prince George’s County Tax Collection Schedule Comparison
Prince George’s County tax collection schedule rules differ from Queen Anne’s County rules. Both counties follow the State tax payment deadline schedule, but the late fee amounts differ. Prince George’s County charges a flat late fee plus monthly interest on the unpaid balance. The interest rate is set by the State each year.
Owners who own property in both counties must pay each county office separately. The State Department of Assessments and Taxation handles the assessment value for both counties. The County Treasurer’s office handles the tax bill and late fee for each county. Owners should set up a payment plan with each county office if needed.
| Item | Queen Anne’s County | Prince George’s County |
|---|---|---|
| Tax Office Phone | (410) 819-4160 | County number |
| Assessment Office | SDAT Queen Anne’s Office | SDAT Prince George’s Office |
| Late Fee | Yes (flat amount) | Yes (flat amount) |
| Monthly Interest | Yes (State set rate) | Yes (State set rate) |
| Payment Plans | Yes (by County Treasurer) | Yes (by County Treasurer) |
Owners moving between counties should file a change of address with the State Department of Assessments and Taxation. The change of address stops the old county tax bill and starts the new county tax bill. The homestead credit transfers to the new property based on the new address. The transfer happens within 30 days of the change of address filing.
Property Tax Records Access and Online Tools
Property tax records access tools give owners a full picture of their tax history. The State portal shows the past 10 years of tax bills, payments, and credits. The portal also shows the credit amounts, exemption types, and appeal history. Owners can print any record for personal use or for the appeal process.
The portal accepts searches by address, parcel ID, or owner name. The search results show the parcel ID, owner name, and street address. Click the parcel ID to view the full record. The full record shows the tax district code, school district, and current assessment value.
- View the past 10 years of tax bills and payments
- View the current credit and exemption amounts
- View the appeal history for the property
- View the tax district code and school district
- Print or download the record for personal use
Property owners can also view the Queen Anne’s County tax collection schedule through the County Treasurer’s website. The site lists the bill mail date, payment deadline, and late fee rule. The site also has a payment portal for online tax bill payments. Online payments use a bank draft or credit card for a small fee.
Property Tax Savings Strategies for Homeowners
Property tax savings strategies help homeowners lower the annual tax bill through legal means. The homestead tax credit is the most common savings tool for primary residents. The credit caps the annual assessment growth on the home. Owners who file the credit keep the cap in place for as long as they own the home.
Other savings tools include the senior credit, veteran credit, and historic home credit. Each credit has its own rule for who qualifies and how to file. Owners who qualify for more than one credit can stack the credits on the same property. The stacked credits lower the total tax bill by a large amount.
- File the homestead tax credit on the primary residence
- Apply for the senior credit if the owner is 65 or older
- Apply for the veteran credit if the owner has military service
- Apply for the historic credit if the home sits in a historic district
- File an appeal if the assessment value is much higher than market value
Property owners can also check the tax card for errors in the lot size, building square footage, or construction type. Errors in the tax card lead to a wrong assessment value. Owners who find an error can file a correction request with the State office. The correction request asks for a review of the tax card data.
Property Tax Due Dates and Bill Delivery Schedule
Property tax due dates 2026 follow the standard State schedule for all Maryland counties. The first half tax bill goes out by July 1. The second half tax bill goes out by January 1. Each bill has a 30 day payment window with no late fee. Bills paid after day 30 trigger a flat late fee plus monthly interest.
Tax bills are mailed to the owner of record on file with the State Department of Assessments and Taxation. Owners who change their mailing address should file a change of address with the State office. The change of address ensures the bill goes to the new mailing address on file. Bills returned as undeliverable go to the County tax sale list.
| Bill Type | Bill Mail Date | Payment Deadline | Late Fee After Deadline |
|---|---|---|---|
| First Half (Annual) | July 1 | July 31 | Yes plus interest |
| Second Half | January 1 | January 31 | Yes plus interest |
| Supplemental Bill | Varies (after appeal) | 30 days from mail date | Yes plus interest |
Owners who pay both halves on time get a clean tax record. A clean tax record helps with future home sales, refinance applications, and tax refund requests. The County tax collection office tracks the payment record for each parcel. The record updates within 5 business days of the payment receipt.
Disabled Property Tax Exemption Criteria
Disabled property tax exemption criteria vary based on the type of disability. The State offers a credit for owners with a service connected disability. The State also offers a credit for owners with a non service connected disability. Each credit has its own application form and proof requirement.
Veterans with a service connected disability qualify for the State veteran credit. The credit amount depends on the disability rating. Veterans with a 100 percent rating get the full credit amount. Veterans with a partial rating get a partial credit amount based on the rating percentage.
- Service connected disability veterans get the State veteran credit
- Disability rating controls the credit amount
- 100 percent rating gets the full State credit
- Partial rating gets a partial State credit
- Application requires proof of disability rating
Non service connected disability owners can apply for the State disability credit. The credit requires proof of the disability from a licensed medical provider. The credit amount depends on the owner’s income and the size of the tax bill. The State office reviews the application and issues a decision within 60 days.
Contact, Local Details, and Map
The Queen Anne’s County tax assessor office is part of the Maryland Department of Assessments and Taxation. The office handles the assessment value, exemptions, credits, and appeal process. The main office sits at Carter M. Hickman District Court Multi-Service Center, 120 Broadway Suite 7, Centreville, Maryland 21617.
Tax Assessor Department Name: Maryland Department of Assessments and Taxation – Queen Anne’s County Office. Official Website URL: https://dat.maryland.gov. Direct Public Search Portal Link: https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx. Main Phone: (410) 819-4160. Official Email: sdat.qaco@maryland.gov. Physical Address: Carter M. Hickman District Court Multi-Service Center, 120 Broadway Suite 7, Centreville, Maryland 21617. Mailing Address: Carter M. Hickman District Court Multi-Service Center, 120 Broadway Suite 7, Centreville, Maryland 21617.
Deed Recorder Department Name: Clerk of the Circuit Court for Queen Anne’s County – Land Records Division. Official Website URL: https://www.mdcourts.gov/clerks/queenannes. Direct Public Search Portal Link: https://www.mdlandrec.net. Main Phone: (410) 758-1773. Official Email: katherine.hager@mdcourts.gov. Physical Address: 100 Court House Square, Centreville, Maryland 21617. Mailing Address: 200 N. Commerce Street, Centreville, MD 21617.
Frequently Asked Questions
Queen Anne’s County property tax services help homeowners understand their bills, locate exemptions, and meet payment deadlines. The Maryland Department of Assessments and Taxation offers an online portal where you can search by address, owner name, or parcel number. Accurate tax data supports budgeting, appeals, and eligibility checks for relief programs. Knowing where to find contact information for the tax collector or deed recorder speeds up any needed corrections. This FAQ answers the most common questions about assessments, rates, exemptions, and payment schedules for residents of Queen Anne and nearby areas.
What are the current 2026 property tax rates for Queen Anne’s County?
The 2026 rate stands at $0.85 per $100 of assessed value for the general fund, plus a $0.12 school levy. To calculate a bill, multiply the assessed value by 0.85 % and add the school portion. A home assessed at $250,000 would owe $2,125 for the general fund and $300 for schools, totaling $2,425 before any exemptions. Rates are posted on the Maryland Department of Assessments and Taxation website and update each January.
How can I find my parcel number and assessment details online?
Visit the Real Property Data Search page on the state portal. Enter your street address, owner name, or known parcel ID. The system returns the latest assessment, exemption amounts, tax district code, and billing history for that property. Results appear within seconds, making it easy to verify numbers before filing an appeal or checking eligibility for a historic district abatement.
Which exemptions apply to historic homes in Queen Anne?
Owners of properties listed in the Queen Anne historic district may qualify for a 20 % tax abatement on the assessed value. To claim, submit the Historic Home Tax Abatement Form with supporting documentation from the local historic commission. The abatement reduces the taxable amount, lowering the final bill. Combine this with the Maryland homestead tax credit for further savings.
What steps should I follow to appeal my property tax assessment?
First, gather recent sales data for comparable homes within the same tax district. Next, download the Assessment Appeal Form PDF from the assessor’s site. Fill out the form, attach evidence, and mail it to the Queen Anne’s County office before the June 30 deadline. After submission, the board schedules a hearing where you can present your case. Successful appeals often reduce the assessed value by 5‑15 %.
Where can I find contact details for the tax collector and deed recorder?
The tax collector’s office sits at 120 Broadway Suite 7, Centreville. Call (410) 819‑4160 or email sdat.qaco@maryland.gov for billing questions. The deed recorder’s office is located at 100 Court House Square, Centreville. Reach them at (410) 758‑1773 or via email katherine.hager@mdcourts.gov for record requests or parcel number verification.
When are property tax payments due for 2026, and what penalties apply for late payment?
Payments are due in two installments: March 1 and September 1. Pay online, by mail, or at the tax collector’s office. If a payment misses the deadline, a 1 % penalty accrues each month, plus interest at the state rate. Paying early avoids penalties and keeps your account in good standing, which is important for any future loan or sale.