What Are Property Taxes, and Who Pays Them?
The Espresso ShotEverything all at once. Short and strong.
- Most buyers pay property taxes through the mortgage: the lender collects a bit each month and pays the county.
- The bill is the county’s value for the home times a rate per $1,000, and the rate depends on your address.
- Don’t plan on the seller’s old bill. Your first bill after you buy can be different.
Property taxes are one of those costs nobody mentions when you’re dreaming about a front door. They’re a big part of what a house costs each month, though, so let’s take the mystery out of them.
Most of the time, you won’t pay them as a separate bill at all. They’re a yearly tax from your county, and for most buyers they’re rolled right into the monthly mortgage payment: your lender collects a little each month and pays the county for you.
What they are. Property taxes pay for local services like schools, fire protection, and roads. Your county treasurer sends the bill, and it’s based on what the county says your house and land are worth.
How the bill is figured. It’s a simple multiplication: the county’s assessed value, times a rate per $1,000 of value. In Buckley, Pierce County’s 2026 rate works out to about $9.12 per $1,000. On a $650,000 house, that’s roughly $5,900 a year, or about $490 a month. Enumclaw is in King County, which sets its own rates. Your exact rate depends on your address, so look it up for any house you’re considering.
When they’re due. Property tax statements come once a year with two payment coupons, due April 30 and October 31. If a due date lands on a weekend or holiday, you have until the next business day. You can also pay the whole amount in April.
Rolled into the mortgage, or paid yourself? With a smaller down payment, many lenders set up an escrow account. Escrow is just a savings account your lender runs for you: you pay a twelfth of the yearly tax each month, and the lender sends the county the money when it’s due. With a larger down payment, some lenders let you pay the county yourself. Which one applies depends on your loan, so it’s a great question to ask early.
If you pay them yourself. The bills come to you, and they’re yours to keep track of. Setting aside a little each month means the April and October bills never catch you off guard. Unpaid property taxes can turn into a serious problem, so it’s a habit worth starting early.
A catch in the estimate. The monthly payment estimate you’re given may use the seller’s current tax bill, which was based on an older value. After you buy, the county looks at the house again, so your first bill can be different. Ask your agent to check the rate for that address rather than trusting the old bill.
One question for your lender. “Does my monthly payment include property taxes and insurance, and what tax amount did you use?” It’s a short question, and the answer tells you what your payment really is.
Once you know how it works, the tax line on your payment estimate stops being a mystery number and becomes one you can check for yourself.