Do you monthly pay property tax in USA?

Question

What if you dont pay it?

abc3643 · Accepted Answer

There are two kinds of property taxes.
1. Real estate property taxes
2. Personal property taxes

I believe that the Federal government does not require payment of any property taxes and that these taxes only come from states and/or local governments.

Personal property taxes do not exist in many states... and perhaps even most states; I am not sure.
I used to live in New York and we did not have personal property taxes. Now I live in Missouri and I do have to pay about $1500 yearly in personal property taxes because of the vehicles that we own. The tax bill is normally sent around Thanksgiving (late November) and is supposed to be paid-off by the end of the year.

I believe almost all states have some form of real estate property taxes because those taxes are used to fund basic services including public schools. In principle, this is a yearly tax, but most people pay it as part of their mortgage.

For instance, my mortgage payment is about $450/month. About $170 of that goes to escrow, meaning that it is held to pay off my real estate property taxes at the end of the year and also to pay home insurance bill. Each year, when I log into my bank's website and check the accounts, I see those once-each-year payments in November to the county and in March to the insurance company.

As for not paying taxes...

Well, with my mortgage payment, the taxes and insurance come out first, then whatever is left is applied to the mortgage. So, I can't pay the mortgage without first paying real estate property taxes.

With my personal property taxes which I have to pay directly, I have until the end of the year to pay them, but, if I am late, penalties are added. You can go for sometime not paying taxes, but ultimately that leads to problems.

For instance, to register a vehicle in Missouri, you first have to show that you've paid your personal property taxes for the previous two years. If you haven't done that, you can't register your vehicle and they won't give you plates.

Regarding real estate property taxes, assuming your mortgage is paid off, then bank is irrelevant and you have to pay your taxes directly. If you go long enough without paying your real estate property taxes, I believe the government can seize your property and sell it to pay the bill you owe.

gorydetails · Accepted Answer

You usually pay annually, and most times your mortgage company will hold it in escrow to cover the taxes. If you don't pay your income taxes there will be a lien on your home. You won't be able to sell it without paying the taxes and eventually, the state will take your home and auction it off to pay the lien.

OddBeMe · Answer

It’s usually wrapped up in your mortgage. If you own the house outright you pay the local municipality yearly I believe. My parents have complained that they don’t have a monthly option and this have to work harder to make sure they have the several grand by the end of the year.

Like income tax, if you don’t pay they add penalties of certain percentages. And if it goes on long enough they could put a lien on your house. But that would be years of ignoring and not paying property tax.

Dargil · Answer

On a local and county basis, yes. If you don't, they can possess and sell your property for taxes. There is no federal property tax here.

KrakenAttackin · Answer

We usually pay property tax quarterly or on the half year, sometimes annually.  What happens if you don't pay it? Bad shit. Your debt will accrue and eventually the government will seize your home.

Anonymous · Answer

The government will take your property

Do you monthly pay property tax in USA?

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