Do your property taxes go up when you pay off your house?
How mortgage payoff changes the way taxes are paid, not how they’re set.
Do your property taxes go up when you pay off your house? This question often comes up when homeowners near payoff and wonder how their ongoing housing costs will change.
Answer
Paying off your mortgage does not directly raise property taxes, because taxes are determined by your local government based on assessed value and tax rates, not loan status. What changes is how you pay them: instead of sending money into an escrow account with your mortgage payment, you may start paying the tax bill directly to the county or city. Property taxes can still increase over time if assessments rise or voters approve higher rates. After payoff, budget separately for these bills so the absence of an escrow account does not lead to missed payments or surprises when tax notices arrive.
Use the home payment estimator to factor in taxes and insurance once escrow ends.
Visit the mortgage FAQ hub for more payoff and tax questions.