How to Pay Property Taxes in Installments

Published by Research Editor on September 10th, 2012 - in Tax Penalties, Taxes

Generally, to avoid interest and penalties, you must pay all your property taxes before February 1. However, if you are either disabled or 65 or older, you can pay your property taxes in four installments, spreading the tax burden over the entire year, with no penalties and interest.

Qualify

You must be:
A) disabled (more at 11.13(m))
OR
B) 65 years old or older
OR
C) the unmarried surviving spouse of a disabled veteran

Payment schedule

To pay taxes in installments, you must:

  • pay 1/4 of taxes before Feb 1, along with a notice that you will pay the rest (3/4) in installments
  • pay second 1/4 before April 1
  • pay third 1/4 before June 1
  • pay your final payment before August 1

Extra payments

You can pay more than the amount due–the extra will be credited to the next installment.

Benefits

NO penalty or interest, if you qualify and pay your installments on time.

Drawbacks

If you miss a deadline, the unpaid amount of taxes is delinquent and you must pay:

  • interest
  • 6% penalty on the unpaid amount

Conclusion

Paying your taxes in installments is an excellent option for those who qualify. If you do not qualify, or if you fall behind in your installment payments, consider a property tax loan to avoid the expensive penalties.

© 2013 FYP, LLC.