DQOTD: When Would You Pay?

[JoeWras]

$3000*0.05/3=$50

That's for four months if holding the cash in the money market. I probably wouldn't wait the full 4 months, so call it $40.

 

[audreyh1]

We get tax bills in Oct, but you have until the end of Jan to pay before late penalties start to accrue. This is convenient because we have the option of bringing the payment into the current year or wait until the next which can be handy for federal income tax itemization.

So I generally wait until Jan to pay unless there is some tax advantage to paying in Dec.

 

[N02L84ER]

I pay ours the week before they are due which is a week before interest starts accruing. In your case, I would pay the week before the interest/penalty starts accruing.

 

[SecondAttempt]

Our property taxes are due Sept 1, and that’s when I’ve paid them every year.

Yesterday talking with friends who all said they don’t pay until late Dec. One said I don’t know anyone who pays before then. I said “I do” and they laughed. And the statements quoted below is printed all over the county tax collectors online and hard copy docs.

I’d noticed interest didn’t accrue until Jan, but it never occurred to me to pay after the published “due date.” I just assumed waiting was a grace period for folks who needed more time to save up to pay…

Too soon old, too late smart?

This might be a case of studying up on the fine print. When I lived in Arizona , property tax bills were due October 1 IF you paid by the half year. You had until January 1 to decide. If you paid the full year bill by January 1 you were good. But if you waited until January 1 you could not pay the first half and wait until March to pay the second half. This is not explained on the bill because it is too complicated.

I personally spent enough time in business management to take it as a given that you never pay a bill before it is due and I maintain that in my personal life.

If the bill is truly due on October 1 I would pay it then but you might want to look into the details further.

 

[FLSUnFIRE]

I pay online 2-3 days before the first "early payment" discount expires at the end of November which is about 4% less than waiting till the due date. Absolutely the best tax and risk free return (can a discount on a tax bill be tax free?) I can find at 1%/mo.

 

[JoeWras]

I pay online 2-3 days before the first "early payment" discount expires at the end of November which is about 4% less than waiting till the due date. Absolutely the best tax and risk free return (can a discount on a tax bill be tax free?) I can find at 1%/mo.

I like FL's method better too. NC's method of having a 4 month grace period is just weird.

 

[Midpack]

$3000*0.05/3=$50

That's for four months if holding the cash in the money market. I probably wouldn't wait the full 4 months, so call it $40.

I like FL's method better too. NC's method of having a 4 month grace period is just weird.

About $50 in interest for me to Sept 1 vs Dec 31. But I was asking from a cash flow POV more than anything, paying property taxes after a bunch of dividends/STCGs instead of before…

I’ll probably wait this year for the first time, no downside I can see.

 

[JoeWras]

About $50 in interest for me to Sept 1 vs Dec 31. But I was asking from a cash flow POV more than anything, paying property taxes after a bunch of dividends/STCGs instead of before…

I’ll probably wait this year for the first time, no downside I can see.

Ah yes, makes sense. I'm still pre-social security so it is all about our savings that we are drawing down, and how can we manage them until we get an income.

I'm going to treat this like I do estimated taxes: put it on my calendar as a reminder.

 

[DrRoy]

When interest rates were near zero I paid stuff early. When you can make something on your money, I hang on to it longer.

 

[Midpack]

Ah yes, makes sense. I'm still pre-social security so it is all about our savings that we are drawing down, and how can we manage them until we get an income.

I'm going to treat this like I do estimated taxes: put it on my calendar as a reminder.

I don’t know what I’d do without iOS reminders - seriously!

 

[donheff]

We get billed half in the spring and half in the summer, and I pay right away. IIRC, there is a penalty for late payments.

 

[levindb]

For the timing on ANY payment, I use the BILL PAY function at my bank. I can choose the date I want that payment to be made from the dropdown calendar. I set up the payment and the date when the bill is received, then I go to sleep.

No calendar reminders needed...just make sure you have the funds available on that future date.

 

[FLSUnFIRE]

I realized I answered what I do, not what I would do if I were in Midpack's shoes. In her situation, I'd probably pay on the "due date" because I'm the type that is never late. That said, the municipality clearly states no penalty until January so I wouldn't find it morally objectionable to taking advantage of the float as they practically encourage it... especially for $50 of interest earned.


Generally, I always pay all bills on the due date and not early to earn interest on the float (and on CC if no fee buying me another month of float).... with things automated, it is so much easier as I can schedule them ahead with the same effort as paying immediately. Regardless of interest rates. It might only be a penny of interest but it's a penny I wouldn't have had otherwise!

 

[Alan]

Ours comes annually and there is no incentive to immediately pay in full so I choose the more popular option of 10 equal payments.

 

[FLSUnFIRE]

Ours comes annually and there is no incentive to immediately pay in full so I choose the more popular option of 10 equal payments.

If that's in arrears then it's a good deal of float! I like 0% interest installments in arrears but pay on the due date for any with advance payment options that don't have a financial incentive.

 

[Alan]

If that's in arrears then it's a good deal of float! I like 0% interest installments in arrears but pay on the due date for any with advance payment options that don't have a financial incentive.

Each January we get the bill for the year to come. If they offered a reduction for paying ahead of time I would do that, but they don't so I pay as you go over 10 months. I think they skip January and February in the monthly payment schedule because traditionally folks are still paying for Christmas then and are more likely to skip those payments.

 

[badatmath]

Ours comes annually and there is no incentive to immediately pay in full so I choose the more popular option of 10 equal payments.

You must have really high taxes if you can pay over 10 payments. . . Here it is twice max.

 

[pacergal]

Our bill comes in October, we pay in full in November. If you paying in full before the due date, you get a 3% reduction/incentive applied.
Otherwise, you can pay in 3 installments over the year.

 

[Alan]

You must have really high taxes if you can pay over 10 payments. . . Here it is twice max.

£2,700 this year ($3,400) for us so not bad I think. Where we moved from in Texas it would have been about $8,800.

 

[Act2]

Get the annual bill I think in September. No interest or penalties until Jan or Feb. I pay in October; it’s become a tradition. Worried I’d forget if I wait to close to deadline.

 

[Texas Proud]

Not sure it is an option there, but here if you are over 65 you can defer your taxes... IOW, not pay them at all..


They do stack up though... eventually they are paid by you or your estate..

 

[Dash man]

We get a 2% discount if we pay early, so I always pay as soon as I get the bill. I also don’t want to forget and I hate owing anything. I wish they would get into the 21st century and have an autopay capability.

 

[aja8888]

Not sure it is an option there, but here if you are over 65 you can defer your taxes... IOW, not pay them at all..


They do stack up though... eventually they are paid by you or your estate..

My ex did that here in Texas and had no appreciable estate. When she passed, our daughter got the house and owed the County $67,000. Fun times!

 

[MissMolly]

Not sure it is an option there, but here if you are over 65 you can defer your taxes... IOW, not pay them at all..


They do stack up though... eventually they are paid by you or your estate..

This is not an option in all states. It's not an option here. The best we get is for over 65 or disabled is a Homestead Exemption. For 2023 this means the first $46,350 of the value is not taxed. The exemption amounts change every two years.

 

[5Miler]

Just got my tax bill last Friday which is not due until October 15. With my senior exemption my tax bill is only $791 so I'll just pay it online this weekend and forget about it until next year.