Property Tax Property taxes are paid in arrears. This means that you pay for them after you use them. For example, 2007 taxes are billed 11/2007 and due as follows: 4% discount if paid in November, 3% in December, 2% in January, and 1% in February. If your property taxes and insurance are escrowed with your loan, your lender will pay the taxes as early as possible to get the best deal. When purchasing real estate the seller will compensate the buyer for the amount of taxes the seller incurred while they owned the property. For example, if the closing date is (0 comments)