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Understanding Property Taxes and Escrow: A Guide for Homeowners

Owning a home comes with plenty of joys and a fair share of responsibilities, including paying property taxes. For many homeowners with a mortgage, this payment happens behind the scenes through an escrow account managed by your lender. However, others may pay their property taxes directly, rather than through an escrow account.

Even if your lender handles the payment, it’s a good idea to keep an eye on it. Mistakes happen, and deadlines vary by state. Staying on top of your escrow account and property tax schedule helps you avoid penalties, late fees, or even a lien against your home.


What Is an Escrow Account?

An escrow account is a separate account your mortgage lender sets up to cover certain expenses, like your property taxes and homeowners’ insurance.1 Each month, your lender deposits part of your mortgage payment into this account so when it’s time to pay your property taxes, the funds are there to cover the bill.

Because property taxes and insurance premiums don’t stay the same from year to year, your mortgage payment may go up or down as those costs change. Each year, your lender conducts an escrow analysis to estimate how much to collect.2 If your tax bill or insurance premium increases, the escrow portion of your monthly mortgage payment will increase to cover the difference. If costs go down, your payment may decrease or you may receive an escrow refund.


Paying Property Taxes Outside of Escrow

Many lenders require borrowers to pay property taxes and insurance through an escrow account, ensuring the bills are paid on time. But there are situations where this doesn’t happen, such as:

  • Your lender pays for homeowners' insurance through escrow, but not property taxes.

  • You opt out of escrow and choose to pay taxes and insurance directly. In some cases, you may need to have a certain amount of equity in the home for some mortgage institutions to be eligible.

  • You own your home outright and don’t have a mortgage.

If you pay your property taxes, you need a system for making those payments. Property taxes aren’t optional, and missing a deadline can be expensive.

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If your local tax authority doesn’t allow you to pay in installments, consider setting aside money each month in a separate savings account.

The tax authority may charge a late fee, and if your account remains delinquent, it can place a lien on your home.3 If you still don’t pay your property taxes, the tax authorities can sell the property to cover the debt or sell the tax lien to someone else who will foreclose on the property. The rules vary from state to state, so talk to an attorney about your options if you’re having trouble paying your property taxes.


How To Stay on Top of Property Taxes and Escrow Accounts

Whether your lenders handle your taxes or you pay them directly, you should review your property tax bills and/or escrow statements at least annually.

Your annual escrow analysis will show how much your lender projects for taxes and insurance and whether the escrow portion of your mortgage payment is sufficient to cover those costs.4

You should confirm whether your lender will pay your property tax bill by the deadline or if you need to personally pay your tax bill.

If you pay your property taxes directly, check to see whether your jurisdiction allows you to pay in installments. Paying in smaller chunks can reduce financial strain at the tax deadline.

If your jurisdiction doesn’t allow you to pay in installments, consider setting aside money each month in a separate savings account dedicated to this expense. Treat it like a self-managed escrow account by dividing your annual property tax bill into 12 monthly deposits. Then you’ll have the funds ready when the tax deadline comes around and avoid the stress of pulling together a large lump sum.


When Are Property Taxes Due?

The timing of property taxes depends on where you live.

For example, Florida counties mail assessment notices by August 1. Tax bills go out on November 1, and you receive a 4% discount if you pay your property taxes in full within 30 days.5 The final deadline is March 31.

Georgia property tax deadlines vary by jurisdiction. For example, the City of Atlanta taxes are generally due on August 15, while Fulton County property taxes are due on October 15.6 Meanwhile, property owners in Savannah pay property taxes in two installments: one due in mid-June and the other due in mid-November.7

Keep in mind that tax deadlines can change from year to year, so always verify the exact dates with your local assessor or treasurer’s office.

Important disclosure information

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information. Diversification does not ensure against loss.

  1. CFPB, “What is an escrow or impound account?” updated September 11, 2024. Accessed October 7, 2025. Back
  2. Tim Maxwell, “Why Did My Escrow Go Up?” Experian, published September 26, 2024. Accessed October 7, 2025. Back
  3. Amy Loftsgordon, “What Happens If You Don’t Pay Property Taxes on Your Home?” NOLO, updated June 20, 2025. Accessed September 23, 2025. Back
  4. CFPB, “§1024.17 Escrow accounts,” accessed September 27, 2025. Back
  5. Florida Department of Revenue, “Tax Collector Property Tax Calendar,” published October 2024. Accessed October 7, 2025. Back
  6. Fulton County Government, “About Our Office,” accessed October 7, 2025. Back
  7. City of Savannah, “When are property taxes due?” accessed September 27, 2025. Back