DQOTD: When Would You Pay?

[RetireAge50]

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.

Hmm. We have a house here in the RGV (Cameron county). We get a 3% discount if paid by end of October so I usually do this.

 

[jazz4cash]

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..

Is the deferral interest free? I could pay those into hi yield savings instead of the county.

 

[ERD50]

Boy, I do like that payment schedule. Our property taxes are half due May 15 and half due October 15 with large penalties for even one day late, several percent of the tax due.

Made me look. As I kinda thought, 1.5% per month, starting at one day after due.

-ERD50

 

[Walt34]

I just wrote the check for the property taxes earlier this month. If paid by Sept. 1st there is a 2.5% discount so I just pay the thing to get it out of the way for another year.

 

[Yipee-Ki-O]

I pay all four installments upon receiving my statement from the county assessor. Whatever small amount of interest I forgo is well worth not having to give property taxes another thought until the following year.

 

[meleana]

In New Hampshire we get two bills- one in December and one in June. I just pay them on the due date.

 

[davidfin]

Property taxes due in November. If paid in full, a 3% discount. If bi annual payments costs a bit more.

 

[indiajust]

I never paid before Xmas. On two occasions I took advantage of boom/bust salary to defer a payment until January so that I could get more deductions in boom years and less in bust years.

 

[Katiek]

I'm too afraid I'd forget. Mine get p;aid almost by return mail.

 

[audreyh1]

Hmm. We have a house here in the RGV (Cameron county). We get a 3% discount if paid by end of October so I usually do this.

No such discount in Hidalgo County.

 

[Martlet]

In Massachusetts, our real estate taxes are due quarterly and interest is charged daily (I think) after the due dates. Rate in our town is about 1.7% per annum of the assessed value.

 

[Midpack]

I realized I answered what I do, not what I would do if I were in Midpack's shoes.

Like most replies…

 

[freedomatlast]

I pay as late as I can to still get the discount which is the end of March and the end of August.

 

[JoeWras]

Like most replies…

Pretty standard.

My non-favorite threads go like this:

OP: "I'm in trouble, I made a mistake, I put my money in the wrong investment X. What should I do? Any suggestions?"

Replies: "Oh, I was smart and never put my money in investment X. You made a terrible mistake. Glad I'm not you."


It is that kind of interplay that causes me to take breaks from time to time. This scenario is not common here. It is very common on bogleheads.

 

[Koolau]

We get no interest in our checking account, so writing a $700+ check twice a year isn't a big deal. Never looked at the invoice other than to notice a due date. To avoid being late - I'll usually be early.

 

[Gonz]

It's due December 31 every year. Begin mailing out in mid November and in my mailbox second week of December usually.

Always use my credit cards like debit cards and pay in full(cash) in mid November. Don't like waiting last minute to do things and usually busy traveling,etc. during December holiday season and January.

It's $1650/yr. so not concerned about earning interests or anything.

 

[ychuck46]

Our property tax bills come out in Oct and they give you until the end of Feb the next year to pay them with no penalty. I asked at the assessor's office the first year we lived here why wouldn't everyone wait until late Feb to pay, and she said some people like/need to budget. Fair answer. That being said I always pay ours before the end of Dec just because we travel a lot during the winter months, so count us among the people who pay early.