Hi, there is 2019 NJ state tax due $596 interest rate is prime 5.25% + 3% = 8.25% "compounded calculation" as per tb21(r) tax bulletin.
Q: How can we calculate interest for outstanding tax balance shown above?
Case 1: from 2020-May-17 to 2022-Jan-15 - how much interest $????
Case 2: from 2020-May-17 to 2022-Apr-15 - how much interest $????
Tax bulletin: https://www.nj.gov/treasury/taxation/pdf/pubs/tb/tb21r.pdf
Interest Rate Assessed on Tax Balances for 2019
The assessed interest rate on outstanding tax balances for the period January 1 – December 31, 2019, is 8.25%.
The rate is calculated as follows: Prime Rate (5.25%) + 3% = 8.25%, compounded annually. How this compounding works?
-->> interest assessed on outstanding tax balances is Prime Rate plus 3%.
appreciate help with mathematical calculations. thank you.
