Boston Property Tax 2026 Rates & Exemptions–Call 617‑635‑4287

Boston Property Tax rates 2026 have risen to 1.06 % for residential parcels, prompting owners to check the Boston residential property assessment process and use the Commercial property tax calculator Boston offers online for quick estimates. The City’s Taxpayer Referral and Assistance Center at (617) 635‑4287 or TRACFAXSG@boston.gov guides taxpayers through Massachusetts property tax exemption guidelines, including the residential exemption, Massachusetts homestead exemption property tax, and senior credit programs. Homeowners can lower bills via 2026 property tax abatements Boston approves, apply for property tax relief programs Massachusetts provides, and avoid Boston property tax delinquency penalties by meeting the quarterly payment deadlines through online bill payment options. If the assessment seems incorrect, residents may follow How to appeal property tax assessment Boston, adhere to the Boston property tax assessment appeals timeline, and present their case before the Property tax appeals board Boston for possible reduction. Additional concerns such as impact of school district funding on Boston property taxes, neighborhood property tax differences Boston, taxable value vs assessed value Boston property, and the Boston property tax refund process are explained on the Assessing Department’s website.

Boston Property Tax lien filing procedure requires the assessor to record a claim when taxes remain unpaid after the statutory grace period, triggering the city’s tax collector contact Boston for follow‑up notices and possible tax sale. Investors in real estate can review Boston real estate tax deduction limits, compare neighborhood property tax differences Boston, and factor Massachusetts state property tax caps when evaluating cash flow and potential returns. Eligible households may qualify for Boston property tax freeze eligibility during economic hardship, while Massachusetts COVID relief measures temporarily reduced interest charges for delinquent accounts, helping families stay current. The Massachusetts property tax exemption guidelines also outline the Taxable value vs assessed value Boston property distinction, ensuring owners understand how the assessment translates into their annual liability. For any dispute, the Property tax appeals board Boston offers a clear procedure, and the City of Boston Assessing Department’s physical address at 1 City Hall Square, Room 301, remains the official point of contact.

Search Boston City Property Tax

Boston property tax records sit on a public search tool run by the City of Boston Assessing Department. Any owner, buyer, or researcher can look up a parcel, view its assessed value, and check the most recent tax bill through the official portal. The portal runs on a self-service lookup that uses either a street address, a parcel ID, or an owner name. Boston runs this as an open data tool so residents do not need an account to view basic property data.

To start a search, open the Property Data and Information page on the city website. Type the full street address into the search bar, then pick the correct parcel from the drop-down list. The result page shows the assessed value, the tax class, the lot size, the most recent sale price, and the current tax bill. Users can also pull parcel maps, building sketches, and sales history for the same address. The lookup is free for everyone and works on a phone, tablet, or computer.

Anyone who needs help with the search can reach the Taxpayer Referral and Assistance Center (TRAC) by phone at (617) 635-4287 or by email at TRACFAXSG@boston.gov. The same staff can answer questions about exemption filings, abatement applications, and the Boston property tax appeal timeline. Refer to the Assessing Department website for current office hours and walk-in counter details.

Boston Property Tax Rates and How They Work

Boston property tax rates change every fiscal year. The rate is set by the Boston City Council after the city budget is approved. The Massachusetts Department of Revenue (DOR) must certify the rate before the bills can be sent. Boston uses a property tax classification system, which lets the city charge a lower rate on residential homes and a higher rate on commercial, industrial, and personal property.

The full residential and commercial rates for fiscal year 2026 are posted on the city budget page at https://www.boston.gov/departments/budget/fy26-property-taxes. Property owners can also see how the rate applies to their own parcel through the Property Lookup tool. Refer to the city website for the exact billing dates of the current fiscal year.

Boston sets its tax rate based on a full and fair cash value assessment. State law requires the city to assess property at 100% of market value. The residential exemption lowers the taxable value of a primary home by a set dollar amount each year. Mayor Wu’s 2026 Property Tax Relief Calculator is also live on the city website at https://www.boston.gov/departments/assessing/mayor-wus-2026-property-tax-relief-calculator to help owners see what they will owe.

Boston Residential Property Assessment Process

The Boston residential property assessment process is run by the Assessing Department. The department reviews every parcel in the city and assigns a value based on recent sales, building size, lot size, and property condition. A team of appraisers inspects the inside and outside of homes, records room counts, and notes any upgrades or damage.

Owners receive a new value on a rotating cycle. The city mails a notice of value to every property owner at the start of the fiscal year. The notice shows the new assessed value, the prior value, and the change between the two. The notice also shows the most recent tax bill and any exemption that lowers the bill. Owners have a set window to file an abatement application if they think the value is too high. Refer to the Assessing Department website for the current year’s notice mailing dates and abatement filing deadlines.

• Assessment date is set by state law and confirmed on the city’s Assessing Department page
• Field inspections take place across all neighborhoods each year
• Notices of value are mailed to all owners at the start of the fiscal year
• Abatement window opens after the notices go out
• A Massachusetts fiscal year runs from July 1 through June 30 of the following year

Property data is open to the public. Anyone can see the latest sales, building size, and lot size through the city’s property lookup tool. The Assessing Department also publishes a parcel-level GIS layer through the Boston Tax Parcel Viewer, which lets users view maps of every parcel in the city.

Massachusetts Property Tax Exemption Guidelines

Massachusetts property tax exemption guidelines list several tax breaks that lower a homeowner’s bill. Boston offers the residential exemption, a personal exemption for qualifying homeowners, a statutory exemption for organizations that own real or personal property, and other programs that may apply. Each program has its own rules, deadlines, and forms. The full list is published on the Tax Exemptions and Abatements page of the Boston Assessing Department.

The residential exemption is the most common tax break in Boston. It lowers the taxable value of a primary home by a fixed dollar amount. The amount is set every year by the City Council. For the current fiscal year, the residential exemption saved qualified Boston homeowners up to $4,353.74 on their tax bill. Owners must live in the home on January 1 and hold title to the property to qualify. Refer to the Residential Exemption page on Boston.gov for the full rules.

Owners can also apply for a personal exemption. This program is for residents who meet the qualifying rules set by state law. The personal exemption removes a portion of the home’s value from taxation. The amount depends on the type of exemption and the owner’s situation. A separate Form 3ABC covers statutory exemptions for non-profits and other organizations that own real or personal property. Refer to the Assessing Department’s Filing for a Property Tax Exemption page for the full list of personal exemption categories and the rules for each.

Deadlines for each exemption type are posted on the Assessing Department calendar page. The Taxpayer Referral and Assistance Center at (617) 635-4287 can answer questions about forms and required documents. Owners can also email TRACFAXSG@boston.gov for help with their application.

2026 Property Tax Abatements Boston

2026 property tax abatements Boston approves can lower a tax bill if the assessment is wrong. An abatement is a reduction, not a forgiveness of the full bill. The owner must show the value is too high or that an exemption was missed. The Abatement Application form is on the city website and can be mailed or filed in person.

To file an abatement, the owner fills out the form and lists the reason for the appeal. Common reasons include a wrong building size, an incorrect lot size, or a sale price that is lower than the assessed value. Owners can attach a recent appraisal, photos, or a sale contract to support the request. The Assessing Department reviews the application and mails a decision.

1. Pick up the Abatement Application form on the Assessing Department website or in person
2. Fill out the property address, parcel ID, and owner details
3. Explain why the assessed value is too high
4. Attach proof such as a recent appraisal, a sale contract, or photos
5. Mail the form to the address printed on the form or drop it off in person

If the owner disagrees with the decision, the next step is an appeal to the Massachusetts Appellate Tax Board. The board holds hearings and issues final orders. Owners can find the form and the filing rules on the state website. The local office can also help with the first step of the appeal.

How to Appeal Property Tax Assessment Boston

How to appeal property tax assessment Boston covers a clear process with set deadlines. The first step is to file an Abatement Application with the Assessing Department. The owner must file before the deadline posted on the city’s website. A late application can stop the appeal before it starts.

The Boston property tax assessment appeals timeline gives owners a clear path:

• Step 1: Review the Notice of Value mailed at the start of the fiscal year
• Step 2: File an Abatement Application with the Assessing Department
• Step 3: Wait for a written decision from the city
• Step 4: If denied, file an appeal with the Massachusetts Appellate Tax Board (ATB)
• Step 5: Attend the ATB hearing and present evidence
• Step 6: Receive a final order from the ATB

Owners can represent themselves in front of the ATB. The board’s website has a self-help section with forms and sample letters. Many owners also hire a tax attorney or a property tax consultant to help with the case. The local Taxpayer Referral and Assistance Center at (617) 635-4287 can answer questions about the timeline and the documents required.

Boston Property Tax Bill Payment Options

Boston property tax bill payment options include online, mail, in person, and bank draft. Online payments run through the City of Boston Treasury Department. The portal accepts credit card, debit card, and e-check. The system shows the current balance, the next due date, and any past-due amount.

Owners who pay by mail should send a check or money order to the City of Boston Treasury. The mailing address is printed on the bottom of the tax bill. Payments by mail must be postmarked on or before the due date to count as on time. Owners can also pay in person at City Hall during business hours.

Tax bills are sent on a regular billing cycle for most residential properties. Quarterly bills help owners spread the cost across the year. Owners who miss a due date can pay a late fee and interest. The Tax Collection office at (617) 635-4131 can help with past-due bills, payment plans, and refund claims.

Boston Property Tax Delinquency Penalties

Boston property tax delinquency penalties apply when an owner misses a payment deadline. The city charges interest on the unpaid amount. The interest rate is set by state law and can change every year. The city also charges a late fee. The full list of fees is on the Tax Collection website and on the back of every tax bill.

Late fees start on the day after the due date. Interest builds up month by month. A lien can be filed on the property if the bill stays unpaid. A lien gives the city a claim on the property that must be paid before the owner can sell or refinance. A tax sale is the final step if a lien stays open for a set number of years.

The Tax Collection office can help owners who fall behind. The office can set up a payment plan that spreads the past-due amount over a set period. Owners who face a hardship can ask for a deferral while a hardship exemption is pending. The office contact is (617) 635-4131.

Boston Property Tax Lien Filing Procedure

Boston property tax lien filing procedure starts after a tax bill stays unpaid past the grace period. The Tax Collection office records a lien at the Suffolk Registry of Deeds. The lien is a public record that runs with the property. The lien must be paid in full before the owner can sell, refinance, or transfer title.

The lien process has these steps:

1. Bill becomes past due after the quarterly deadline
2. Tax Collection mails a demand letter to the owner
3. Tax Collection files a Memorandum of Lien at the Suffolk Registry of Deeds
4. The lien is recorded in the official land records
5. Owner has a set window to pay the past-due amount plus fees
6. If unpaid, the property can be advertised for a tax sale

Owners can check the status of a lien through the Suffolk Registry of Deeds public search portal. Refer to the Suffolk Registry of Deeds website for the current search portal link, office address, and contact phone number.

Property Tax Relief Programs Massachusetts

Property tax relief programs Massachusetts offers include the Circuit Breaker tax credit, the senior property tax deferral, and the Community Preservation Act exemptions. The Circuit Breaker is a state income tax credit for qualifying seniors with income under a set cap. The credit is paid through the Massachusetts Department of Revenue and applied to the owner’s state tax return.

The senior property tax deferral lets qualifying owners put off a portion of their tax bill. The deferred amount is a lien on the home, paid back when the home is sold or the owner passes away. This program is run by the state Department of Revenue. Refer to the state Department of Revenue and the Boston Tax Collection office for current eligibility rules and the application process.

• Circuit Breaker: state income tax credit for qualifying seniors
• Senior Deferral: postpones a portion of the tax bill for qualifying seniors
• Residential Exemption: Boston’s main property tax break for homeowners
• Personal Exemption: lowers the bill for qualifying homeowners
• Community Preservation Act: a surcharge that funds affordable housing

The Mayor’s 2026 Property Tax Relief Calculator is another tool to help owners see what they might save. Owners enter their address and see any exemption they already receive, plus a list of other programs they can apply for. The calculator is on the Assessing Department website at https://www.boston.gov/departments/assessing/mayor-wus-2026-property-tax-relief-calculator.

Boston Real Estate Tax Deduction Limits

Boston real estate tax deduction limits depend on the type of property and the tax year. Most homeowners can deduct property tax paid on their federal return, subject to the federal cap on state and local tax deductions. The federal cap is set by federal law and applies to all U.S. taxpayers. Investors can also deduct property tax on rental properties against rental income on their federal return.

For income tax purposes, Boston rental owners can claim property tax as a business expense. The expense lowers taxable rental income, which lowers the owner’s federal tax bill. Owners of commercial property can deduct property tax as a business expense on the same return. Boston also has a personal property tax filing for business personal property. Refer to the Boston Assessing Department’s personal property tax page for the rules and the filing deadline for each fiscal year.

Owners should check the current federal SALT cap and any state-level limits before claiming a deduction. A qualified tax professional can help with the right amount. The Boston Assessing Department’s personal property tax page has the rules and the deadline for filing each year.

Neighborhood Property Tax Differences Boston

Neighborhood property tax differences Boston shows up in the data each year. The total tax bill depends on the assessed value of the home and the tax rate that applies. Neighborhoods with higher median home values often pay a higher total bill, even though the residential rate is the same across the city. A few neighborhoods with a higher share of exempt properties or commercial properties also see different levy pressure.

The city’s open data portal publishes assessed values by neighborhood. The Boston Tax Parcel Viewer shows a map of every parcel and lets users click on a neighborhood to see totals. The Assessing Department’s annual report also breaks down the levy by class and by neighborhood. The 2026 rates and shares are on the FY26 Property Taxes page of the city website at https://www.boston.gov/departments/budget/fy26-property-taxes.

Owners can compare two addresses side by side through the Property Lookup tool. The tool shows the assessed value, the lot size, the building size, the most recent sale price, and the current tax bill. The data is the same for every neighborhood in the city. The differences come from the homes themselves, not from the rate.

Taxable Value vs Assessed Value Boston Property

Taxable value vs assessed value Boston property covers the difference between the city value and the value used to compute the tax. The assessed value is the full market value the city assigns to the property. The taxable value is the assessed value minus any exemption the owner qualifies for. The tax bill is the taxable value times the residential or commercial rate.

For most Boston homes, the residential exemption is the main reduction. The exemption removes a fixed dollar amount from the assessed value, which lowers the taxable value. A home with an assessed value of $900,000 and a residential exemption of $4,353 has a taxable value of $895,647. The tax is then calculated using the residential rate per $1,000 of value.

• Assessed value: full market value set by the city
• Residential exemption: fixed dollar amount removed from the value
• Taxable value: assessed value minus any exemption
• Tax rate: dollars per $1,000 of value, set by the City Council
• Tax bill: taxable value times the rate, divided by 1,000

Owners can see the math on their tax bill. The bill shows the assessed value, the exemption, the taxable value, the rate, and the total amount due. The Property Lookup tool also shows the same numbers for the current year. A simple check of the math can help owners spot errors before they pay.

Boston Property Tax Refund Process

Boston property tax refund process starts when a tax bill has an overpayment. Common reasons for a refund include a duplicate payment, a payment made after a successful abatement, or a misapplied exemption. Refunds go back to the owner of record on the day the overpayment is found. The refund can be a check, a credit on the next bill, or a direct deposit.

Owners who spot an overpayment can contact the Tax Collection office at (617) 635-4131. Staff will pull the payment history and confirm the overpayment. The office then files a refund request with the city Treasury. Refund checks usually go out within a set period, depending on the case.

Refunds can also come from a successful abatement application. If the city lowers the assessed value after an appeal, the city refunds the difference for the current year. Past-year refunds are also possible in some cases. The Abatement Application form asks the owner if they want a refund for any bill that has already been paid. The Tax Collection office processes those refunds after the abatement is granted.

Property Tax Collector Contact Boston

Property tax collector contact Boston is the Tax Collection office under the City of Boston Treasury. The office handles bill payments, past-due notices, payment plans, refunds, and tax sale questions. The main phone is (617) 635-4131. Walk-in visitors can stop by the Treasury counter at City Hall. Refer to the tax bill or the Tax Collection website for the current address and office hours.

Owners can also use the online payment portal to see balance, view bills, and pull payment history. The portal accepts credit cards, debit cards, and e-checks. Most payment questions can be handled without a phone call. Past-due notices include a case number that staff can use to pull up the account when an owner calls.

Email contact is also available for each office. The Assessing Department can be reached at TRACFAXSG@boston.gov. The Personal Property Unit can be reached at PersonalProperty@boston.gov. Each office replies during standard business hours.

Massachusetts State Property Tax Caps

Massachusetts state property tax caps come from Proposition 2½. The law limits how much a city or town can raise the total property tax levy each year. The cap is 2.5% over the prior year’s levy, plus an amount for new growth. New growth means the value of new construction and new parcels that did not pay tax in the prior year. The Massachusetts Department of Revenue certifies the levy limit each year.

Cities and towns can vote to override the cap with a ballot question. The override lets the city raise the levy above the cap for a set purpose. Refer to the city budget page for the current year’s levy limit, override history, and adopted rates.

Proposition 2½ also caps how much the levy can shift between residential and commercial classes. Cities and towns that use a classification system, like Boston, must keep the residential share at the lowest level allowed by law. The City Council votes each year on the residential factor, which sets the residential rate. The shift between classes can also be limited by state law.

Impact of School District Funding on Boston Property Taxes

Impact of school district funding on Boston property taxes is large. The Boston Public Schools budget is the largest line in the city budget. More than 70% of Boston’s $4.6 billion budget comes from property taxes, primarily from commercial real estate. A large share of that revenue funds public schools, charter schools, and school facilities. When the school budget grows, the city often needs a higher property tax levy.

State aid to schools also plays a role. Boston receives a mix of local property tax revenue and state education aid. Changes in state aid can shift the share paid by local property taxes. Owners can track the school budget on the city budget page and the state Department of Elementary and Secondary Education website.

• Boston Public Schools is the largest department in the city budget
• Property taxes cover the local share of school funding
• State education aid covers a portion of school costs
• Capital projects for schools often use bond funding, not direct tax revenue

Owners can also attend the City Council budget hearings each spring. The hearings cover the next fiscal year budget, the proposed levy, and the proposed rates. The hearings are open to the public. The schedule is on the City Council website.

Boston Property Tax Hardship Relief

Boston offers a hardship exemption for low-income homeowners who meet state-law rules. The exemption can lower the taxable value of a primary home. The owner must meet the age, income, and asset rules set by state law. The owner files a personal exemption form and shows proof of age, income, and assets. The Assessing Department reviews the application and sends a written decision.

Owners who receive the hardship exemption still need to pay the reduced tax bill on time. The exemption can be lifted if the owner no longer meets the rules. The Taxpayer Referral and Assistance Center at (617) 635-4287 can help with the application and renewal process. Refer to the Assessing Department’s Filing for a Property Tax Exemption page for the current rules and the application form.

Property Tax Credit for Seniors Boston

Property tax credit for seniors Boston offers is the Circuit Breaker credit. The credit is run by the Massachusetts Department of Revenue, not by the city. The credit helps qualifying seniors with a low or moderate income. The credit is paid out through the state income tax system, not as a direct reduction on the property tax bill.

To qualify, the owner must be 65 or older, a Massachusetts resident, and own or rent a home in the state. The owner’s income must be below the cap set by state law. The credit amount is set by state law and may change each year. The application is filed with the senior’s state Form 1 or Form 1-NR/PY.

Boston also has a personal exemption for qualifying owners over 65. The exemption lowers the taxable value of the home. Owners can apply for the state credit and the city exemption at the same time. The two programs are run by different offices. The city exemption goes through the Boston Assessing Department. The state credit goes through the state Department of Revenue.

Commercial Property Tax Calculator Boston

Commercial property tax calculator Boston offers runs on the city website and through several third-party tools. The city version is built into the Property Lookup tool. The owner enters an address, sees the assessed value, the class, and the current tax bill. The city also has a small business calculator for owners with personal property filings.

Third-party calculators use the same data the city uses. They pull the assessed value from public records and apply the current commercial rate. The Mayor’s 2026 Property Tax Relief Calculator is also live on the city website at https://www.boston.gov/departments/assessing/mayor-wus-2026-property-tax-relief-calculator. The state Department of Revenue posts a statewide property tax calculator that covers all 351 cities and towns.

Owners with a complex parcel can ask the Assessing Department for a written estimate. Staff will pull the parcel data and apply the current rate. The estimate is not binding, but it can help with budgeting. The TRAC line at (617) 635-4287 can route the request to the right staff.

Real Estate Investor Property Tax Boston

Real estate investor property tax Boston covers the rules for rental and commercial property owners. Rental owners pay the residential rate on a one- to three-family home. Owners of larger buildings and commercial properties pay the commercial rate. The rate class is set by the city and is shown on the Property Lookup page. Refer to the Assessing Department for the exact classification rules.

Investors can deduct property tax paid on rental properties against rental income on the federal return. Depreciation, mortgage interest, repairs, and management fees are also deductible. Boston landlords must also file a state Form 1 with a rental income schedule. The rules change based on the type of entity that holds the property.

Investors can also file an abatement application if the assessed value is too high. The same rules apply to residential and commercial owners. The Abatement Application form is the same for both. The Taxpayer Referral and Assistance Center at (617) 635-4287 can help with the timeline.

Contact, Local Details, and Map

The offices below handle property tax records, assessment data, exemption filings, abatement applications, and lien searches in Boston. Use the contact details below for the fastest service.

Tax Assessor
Department Name: City of Boston Assessing Department
Official Website URL: https://www.boston.gov/departments/assessing
Property Data and Information Page: https://www.boston.gov/departments/assessing/property-data-and-information
Tax Information Support Page: https://www.boston.gov/departments/assessing/tax-information-support
Residential Exemption Page: https://www.boston.gov/departments/assessing/residential-exemption
Statutory Exemption Page: https://www.boston.gov/departments/assessing/statutory-exemption
Tax Exemptions and Abatements Page: https://www.boston.gov/departments/assessing/tax-exemptions-and-abatements
Filing for a Property Tax Exemption Page: https://www.boston.gov/departments/assessing/filing-property-tax-exemption
How to File For a Real Estate Tax Abatement Page: https://www.boston.gov/departments/assessing/how-file-real-estate-tax-abatement
Personal Property Tax Page: https://www.boston.gov/departments/assessing/personal-property-tax
Taxpayer Referral and Assistance Center Page: https://www.boston.gov/departments/assessing/taxpayer-referral-and-assistance-center
Mayor Wu’s 2026 Property Tax Relief Calculator: https://www.boston.gov/departments/assessing/mayor-wus-2026-property-tax-relief-calculator
FY26 Property Taxes Page: https://www.boston.gov/departments/budget/fy26-property-taxes
How We Tax Your Property Page: https://www.boston.gov/departments/assessing/how-we-tax-your-property
Main Phone: (617) 635-4287
Official Email: TRACFAXSG@boston.gov
Business Personal Property Unit Phone: (617) 635-1165
Business Personal Property Unit Email: PersonalProperty@boston.gov

Tax Collection
Department Name: City of Boston Treasury / Tax Collection
Problems with Real Estate Tax Bills Page: https://www.boston.gov/departments/tax-collection/problems-real-estate-tax-bills
Main Phone: (617) 635-4131

Frequently Asked Questions

Boston property tax affects every homeowner, business, and landowner in the city. The Assessing Department supplies tools to look up assessments, pay bills, claim exemptions, and appeal values. Knowing where to find forms, rates, and help lines saves time and money, especially with the new 2026 residential tax rate change.

How can I look up my Boston property tax assessment online?

Visit the Boston Property Lookup portal at the Assessing Department website. Enter the street address, parcel number, or owner name. The page shows the assessed value, taxable value, and the most recent bill. No account is needed for basic data, and the site updates after each reassessment cycle.

What are the Boston residential property tax rates for fiscal year 2026?

The city applies a residential rate of 1.06 percent on the taxable value of homes. This rate is the lowest allowed by state law and applies to owner‑occupied primary residences. Commercial, industrial, and personal property use higher class rates.

Where do I find forms and deadlines for the Boston residential exemption?

Download the exemption application from the Assessing Department’s “Tax Exemptions and Abatements” page. Submit the completed form by the deadline listed on that page, usually early April. If you need help, call the Taxpayer Referral and Assistance Center at 617‑635‑4287 or email TRACFAXSG@boston.gov.

How do I appeal a property tax assessment in Boston?

First, review the assessment details on the Property Lookup tool. If you believe the value is wrong, file an appeal with the Office of the Tax Appeal Board. The appeal must be submitted within 30 days of the assessment notice. Include supporting evidence such as recent sales, appraisals, or error corrections. The board will schedule a hearing and send a decision by mail.

What payment options are available for Boston property tax bills?

Pay online through the city’s Assessing Online portal using a credit card, debit card, or bank transfer. You can also set up automatic bank drafts, mail a check to the Tax Collection office, or pay in person at City Hall, Room 301. Late payments incur a penalty of 5 percent plus interest, so pay by the due date posted on your bill.