Why did I get a property tax bill if I have an escrow?

If you have an escrow account, getting a property tax bill is common and does not usually mean something is wrong. Here’s how it works and the most likely reasons this happens.

1. The Bill Is Sent for Your Records

Local tax authorities always send the property tax bill to the homeowner, even when escrow is responsible for payment.

• The bill is informational
• Your lender uses it to verify the amount due
• You are still legally responsible for the tax, even though escrow pays it

This is the most common reason.

2. Escrow Pays Later Than the Bill Date

Property tax bills often arrive weeks or months before the due date.

• Escrow typically pays close to the delinquency deadline
• You may receive a “payment due” notice even though escrow will pay it later

Do not pay it yourself unless your lender instructs you to.

3. Your Escrow Account Is New or Recently Changed

This often happens if:

• You recently purchased the property
• You refinanced
• Escrow was just set up or reinstated

In these cases:

• The lender may not yet be enrolled with the tax authority
• The first bill may be sent only to you

4. The Tax Bill Is for a Period Not Covered by Escrow

Escrow may not cover:

• Supplemental or reassessment tax bills
• Prior-year taxes
• Special assessments or local fees

Examples include:

• California supplemental property tax bills
• Missed taxes from before the loan was issued

5. Escrow Shortage or Escrow Waiver

If:

• Your escrow balance is short
• You waived escrow as part of your mortgage terms

Then:

• The lender may not pay the bill
• You may be responsible for payment directly

Check your most recent escrow analysis statement.

6. Supplemental or Corrected Tax Bills

Certain bills are not always paid through escrow automatically, such as:

• Supplemental assessments
• Escape assessments
• Corrected or back-tax bills

Some lenders require manual notice from the homeowner for these bills.

What You Should Do (Step-by-Step)

1. Check your mortgage statement to confirm escrow is active
2. Review the tax bill type (regular vs supplemental)
3. Contact your lender or loan servicer and ask:
   
   • “Is this bill scheduled to be paid through escrow?”
4. Do not pay the bill yourself unless the lender confirms you should
5. Keep a copy of the bill in case escrow needs documentation

Key Takeaway

Receiving a property tax bill does not mean escrow failed. It is usually:

• A standard notice
• A timing issue
• Or a bill type escrow doesn’t automatically cover

Always verify before paying, to avoid double payment.

Sources:

• CFPB - Escrow Accounts
• CFPB – Mortgage Servicing Rules (Regulation X, RESPA)
• IRS – Real Estate Taxes (Publication 530)