Here is how you can pay your property tax bills

If you own a house a property tax bill is something that comes along. The amount you pay is used by the local governments for public services. Property taxes can be paid using two different options. One, as part of the monthly mortgage bill and the other, paying it directly at the local tax office. Before we dig deep into the methods of payment let’s understand how property taxes are calculated.

How are property taxes calculated?

The tax office multiplies the property’s assessed value with the local tax rate, to sum up, your tax bill. Say, for example, the assessed value of your house is $300,000 and the tax rate is 1% the tax bill will be $3,000. The concept is as follows, the higher is the assessed value, the higher is the tax rate. Suppose your local government applies the tax rate only to a part of the assessed value, then it is referred to as the assessment ratio. Considering the same example above if the assessment ratio is 80% then your tax bill will be calculated as follows, $300,000*.80*.02, and hence your property tax bill would be $4,800.

Paying your property tax bills

As mentioned above let us discuss both the payment methods in detail.

·        As a part of the monthly mortgage payment

Property tax bills will be included along with the monthly mortgage payment. The lender divides the tax bill by 12 and includes it along with the monthly payment i.e. along with four costs, principal, interest, taxes, and insurance. Say, if your tax bill is $3,000 you will be paying $250 every month. The lender sends the IRS Form 1098 by Jan 31st if the mortgage paid was $600 or more in the previous year. If you fail to receive this form you can find information on the lender’s website. Appeal your property taxes if you feel your property taxes are way too high.

·        Paying at the local tax office

Depending on the place where you live the payment options vary. Once you receive the bill via mail, you can pay your tax bill using one of the below options:

pay by money or check

a debit card or credit card


via telephone using a debit or a credit card.

The payment can be made at once or in installments, monthly, quarterly, or biannually.

Final thoughts

Everyone who owns a property owes to pay property taxes. If your property taxes are included along with the mortgage payment, the lender pays taxes on your behalf else you can pay your property taxes at the local tax office. Always opt for a property tax appeal if your property taxes are high. Appealing annually can help you reduce your property taxes.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s