Dear Claire, I Just Got My Property Tax Statement. Do I Need to Pay It?

“Dear Claire, I just opened my mail, and there’s a property tax statement for thousands of dollars. Am I supposed to pay this? Did I miss something?”

Every fall, I can almost predict the phone calls before they happen. If you’ve ever had this moment of panic after opening your mailbox, you’re definitely not alone. In fact, I hear from several homeowners every year who are worried they’ve missed a payment or suddenly owe a huge bill they weren’t expecting.

The good news? For many homeowners, there’s nothing to worry about.

Understanding your Portland-area property tax statement and knowing whether you actually need to do anything with it can save you a lot of unnecessary stress. Let’s walk through what that annual statement means, how property taxes are typically paid, and what you should know as a homeowner in the Portland metro area.

What Is a Property Tax Statement?

Let’s start with brass tacks. Every year, county tax assessors across Oregon mail property tax statements to homeowners. In Multnomah, Clackamas, and Washington Counties, which make up the Portland Metro Area, property tax statements are mailed out by October 25. Even if you’ve owned your home for years, receiving one can still be a little unsettling because the total amount due is often several thousand dollars.

That statement is simply your annual record of the property taxes assessed on your home. It outlines:

• Your property’s assessed value
• The amount of property taxes due
• Payment deadlines
• Available payment options
• Any discounts for paying early, if applicable
• Your tax account information

The important thing to remember is this: Receiving the statement doesn’t necessarily mean you need to write a check. Whether you need to take action depends on how your property taxes are paid.

There Are Two Common Ways Property Taxes Are Paid

In the Portland, Oregon area, homeowners fall into one of two categories.

Understanding which one applies to you makes reading your property tax statement much less confusing.

Option 1: Your Mortgage Company Pays Your Property Taxes Through Escrow

This is how many homeowners pay their property taxes. If you have an escrow account, you’ve actually been paying toward your property taxes all year long.

Each monthly mortgage payment generally includes (known as PITI):

• Principal
• Interest
• Homeowners insurance
• Property taxes

Your mortgage lender collects a portion of your annual property taxes every month and deposits those funds into an escrow account. When property taxes come due, the lender pays the county directly on your behalf.

In other words, you’ve already been paying—you’ve just been paying a little bit every month instead of all at once.

If this describes your situation, your annual property tax statement is primarily for your records. You typically don’t need to mail a payment because your lender takes care of it for you.

Option 2: You Pay the County Directly

Not everyone has an escrow account. Some homeowners choose to manage their own property tax payments, while others have loans that don’t require escrow.

If that’s your situation, the annual property tax statement is much more than just a record—it’s your reminder that payment is due according to the county’s schedule. You’ll want to review the statement carefully and make sure you understand:

• When payments are due
• How much you owe
• Whether you’re paying in full or using an installment plan

If you’re paying your own taxes, don’t simply file the statement away. It’s your responsibility to make sure those payments are made on time.

Why Is My Property Tax Statement a Different Color?

One of the easiest ways many Oregon homeowners remember how their taxes are paid is by the color of the statement they receive.

All three counties in the Portland Metro Area, Multnomah, Washington, and Clackamas, use the same color-coded tax statements system:

• Your mortgage company pays the taxes through escrow – yellow statement
• You’re responsible for paying the county directly – green statement

If your statement indicates that your lender is handling payment, there’s generally nothing you need to do beyond keeping the statement for your records.

If your statement indicates you’re responsible for payment, you’ll want to review the payment instructions carefully and make arrangements before the applicable deadlines.

While the colors have been a helpful visual reminder over the years, counties occasionally update their forms and mailing formats. If you’re ever unsure, don’t rely on the color alone. Review the information on the statement, check your mortgage documents, or contact your lender.

And of course, you’re always welcome to check in with me.

How Can I Tell If I Have an Escrow Account?

If you’re not sure whether your lender pays your property taxes, there are several easy ways to find out.

Look at your monthly mortgage statement. If you see a section labeled “Escrow,” chances are your payment includes property taxes and homeowners insurance.

You can also:

• Review your closing documents.
• Log in to your mortgage account online.
• Contact your loan servicer.
• Ask your real estate professional if you’re unsure.

Many first-time homeowners don’t realize they’ve been paying property taxes every month because the payment is bundled into their mortgage.

That’s one reason these annual tax statements can be so surprising.

Why Do Some Homeowners Choose Escrow?

Escrow offers simplicity.

Instead of saving several thousand dollars to pay property taxes all at once, homeowners spread that cost over twelve monthly mortgage payments.

Many people appreciate knowing that:

• Taxes are paid automatically.
• They don’t have to remember payment deadlines.
• Large annual tax bills don’t catch them off guard.

For homeowners who prefer predictable monthly expenses, escrow can be a convenient option.

Why Do Some Homeowners Pay Their Taxes Themselves?

Other homeowners either don’t have a mortgage/lender or just prefer maintaining control over their finances. Paying property taxes directly allows them to:

• Manage their own savings.
• Earn interest on those funds before payment is due.
• Avoid escrow account adjustments.
• Handle payments on their own schedule.

Neither option is necessarily better.

It’s simply a matter of what works best for your financial situation and whether your mortgage allows you to waive escrow.

Can I Pay My Property Taxes in Installments?

Yes. Oregon gives homeowners multiple payment options.

Many counties allow you to:

• Pay the full amount at once.
• Divide payments into installments over the course of the tax year.

Depending on your county and payment timing, there may also be incentives for paying the full amount early. Your annual property tax statement outlines the available payment options and important due dates.

If you’re responsible for paying the county directly, be sure to review those deadlines carefully.

Why Did My Property Taxes Increase?

This is another question I hear quite a bit. Several factors can affect your annual property tax bill, including:

Changes in Assessed Value

Your property’s assessed value may increase over time, even if you haven’t made improvements.

Home Improvements

Major renovations, additions, or new construction can sometimes affect your assessed value.

Local Tax Measures

Voter-approved bonds and local levies may also influence your property tax bill.

Changes in Tax District Rates

Schools, parks, libraries, fire districts, and other local services all contribute to your property’s overall tax rate.

An increase doesn’t necessarily mean something is wrong—it often reflects one or more of these factors.

Can I Appeal My Property Taxes?

If you believe your property’s assessed value is incorrect, Oregon homeowners do have appeal rights. However, it’s important to understand that:

• Market value and assessed value aren’t always the same.
• Appeals have deadlines.
• Supporting documentation is important.

If you have concerns about your property’s assessment, it’s worth discussing the situation with your county assessor or a trusted real estate professional before deciding whether an appeal makes sense.

Are Property Taxes Tax Deductible?

Property taxes may qualify as a deduction on your federal income tax return, depending on your individual tax situation and current tax law. That’s one reason it’s important to keep your annual property tax statement—even if your lender paid the taxes through escrow. It serves as documentation when preparing your income taxes.

Since every taxpayer’s circumstances are different and tax laws may change, it’s always best to consult your accountant or tax advisor regarding deductions that may apply to you.

What Happens If I Miss a Property Tax Payment?

If you’re responsible for paying your property taxes directly, missing a payment can result in:

• Interest charges
• Penalties
• Additional collection activity over time

That’s why it’s important not to ignore the annual statement if you’re paying the county yourself. If you’re having financial difficulty, contact your county as early as possible to discuss available options.

Property Tax Frequently Asked Questions

Why did I receive a property tax statement if my lender pays my taxes?

Because the county still sends you the annual statement for your records. In most cases, your lender will receive the tax information separately and submit payment from your escrow account.

How do I know if my lender already paid my taxes?

Check your mortgage account online or review your escrow activity. You can also contact your loan servicer directly.

Can I remove my escrow account?

Some loan programs allow homeowners to waive escrow after meeting certain requirements, while others require it for the life of the loan. Your lender can explain what options are available.

What if I recently bought my home?

Your escrow setup should have been explained during closing. If you’re unsure whether property taxes are included in your monthly mortgage payment, your lender can confirm.

What if I paid too much into escrow?

Mortgage companies periodically review escrow accounts. If there’s a significant surplus, they may refund the excess or adjust future monthly payments. If there’s a shortage, your monthly payment may increase to make up the difference.

Do property taxes affect my monthly mortgage payment?

Yes, if you have an escrow account. If your annual property taxes increase, your lender may adjust your monthly mortgage payment to ensure enough money is collected to cover future tax bills.

When in Doubt, Ask

One of the things I love most about real estate is helping people navigate the questions that don’t come up every day. Property tax statements are a perfect example. You only receive one each year, so it’s completely understandable if you forget exactly how it works or wonder whether you’re supposed to take action.

I’d much rather answer a quick question than have someone spend days stressing about a tax bill they may not even need to pay. So if your property tax statement shows up in your mailbox and you’re unsure what it means, don’t panic.

Take a look at how your property taxes are paid, review the information on the statement, and if you’re still uncertain, reach out.

That’s what I’m here for.

About Claire

Claire Paris is the Principal Broker and owner of Paris Group Realty, LLC, serving buyers and sellers throughout the Portland metropolitan area. With decades of experience helping clients navigate every stage of homeownership, Claire is passionate about making real estate more approachable through practical advice, honest answers, and educational resources.

Have a real estate question you’d like answered in a future Dear Claire article or video? Whether you’re buying your first home, preparing to sell, investing in real estate, or simply wondering how something works, we’d love to hear from you.

Visit Paris Group Realty, LLC to learn more about our team and services, or explore our Paris Group Realty, LLC YouTube channel, where you’ll find hundreds of videos covering buying, selling, homeownership, and life in the Portland metro area.