How Property Taxes Flow Through Your Mortgage Escrow

Ever wonder where the “escrow” part of your mortgage payment goes when Salt Lake County taxes come due? If you live in South Jordan, that line item does a lot of quiet work in the background. Understanding the flow helps you spot mistakes early and avoid penalties. In this guide, you’ll learn the key dates, the rules that protect you, and a simple checklist to keep your escrow on track. Let’s dive in.

Escrow basics

Escrow is a separate account your mortgage servicer manages to collect money for property taxes and homeowners insurance. They add a set amount to your monthly payment, hold the funds, then pay bills when they come due. Federal rules under RESPA set how servicers calculate, disclose, and time these payments. You can review the federal framework in the CFPB’s Regulation X overview of escrow accounts.

Basic flow: Salt Lake County issues your tax bill, your servicer withdraws funds from escrow and pays the county by the due date, then your servicer runs an annual escrow analysis and adjusts your monthly amount if needed. You can confirm payment using the county’s Pay My Property Taxes tools.

• Learn more about escrow requirements in CFPB Regulation X: escrow account rules
• Check county payment status: Salt Lake County Pay My Property Taxes

Salt Lake County tax calendar

Knowing the timeline helps you anticipate changes in your escrow payment and spot issues quickly.

Jan 1 assessment date

Salt Lake County values your property as it exists on January 1. This becomes the base for that year’s tax bill. See key dates on the County Treasurer’s page: Dates and Deadlines.

Summer valuation notices

Valuation notices usually arrive in July or August. Review the assessed value and explore appeal options if needed. For timing details, visit the Assessor’s page: Assessor Dates and Deadlines.

November bills and due date

Tax notices are typically mailed by November 1, and current-year taxes are due by November 30. If unpaid by Nov 30, they become delinquent on Dec 1. Your servicer must time escrow disbursements to avoid penalties. You can verify payment on the Treasurer site: Pay My Property Taxes.

How servicers calculate escrow

Your servicer estimates what will be paid from escrow over the next 12 months, divides that total by 12, and adds it to your monthly mortgage payment. They also run an annual escrow analysis and send you a statement showing last year’s activity and the coming year’s projections. Federal rules allow a cushion up to one-sixth of annual disbursements, which equals two months of escrow. This cushion helps prevent shortfalls between analyses.

• Federal rules and cushions: CFPB Regulation X — escrow

Quick example

• Annual property taxes: $3,600, homeowners insurance: $1,200. Total escrowed: $4,800 per year.
• Baseline monthly escrow: $4,800 ÷ 12 = $400 per month.
• Maximum cushion: one-sixth of $4,800 = $800. If your servicer holds the full cushion, your monthly payment may rise to build or maintain that buffer.
• If taxes rise to $4,500, new total = $5,700 and the new monthly escrow need = $475. Any shortage can be handled per federal options, which may include spreading repayment over 12 months.

Protections for Utah homeowners

Several rules protect you, both federally and in Utah.

• Timely payment: Servicers must disburse escrow funds on or before the deadline needed to avoid penalties. See the federal rule summary here: CFPB Regulation X.
• Annual statements and adjustments: Your servicer must send an annual escrow statement showing any surplus, shortage, or deficiency and your new monthly amount. Surpluses of $50 or more must be refunded within 30 days under the federal rule.
• Interest on escrow in Utah: Utah law requires lenders to credit interest to escrow accounts annually, with limited exceptions. Review the statute: Utah Code §7-17-3.
• Initial deposits: Utah limits how much a lender can require at closing for an escrow reserve, generally aligning with the federal cushion concept. See Utah Code §7-17-7.
• Lender liability: If funds were available but the servicer failed to pay on time, Utah law provides lender liability for resulting damages. Details here: Utah Code §7-17-6.

Quick homeowner checklist

Use this to stay ahead of tax deadlines and escrow changes in South Jordan.

1. Mark key dates: Jan 1 assessment, July or August valuation notice, November tax notice, and Nov 30 due date. Reference the county’s Dates and Deadlines.
2. Verify payment: After your servicer’s disbursement, confirm the county shows payment using Pay My Property Taxes.
3. Review your annual escrow statement: Look for tax or insurance increases, cushions up to one-sixth, and any shortage repayment plans.
4. Compare your valuation: Review your assessor notice in July or August. If you disagree, follow the Assessor’s guidance on timing at Assessor Dates and Deadlines.
5. If something looks off: Contact your servicer right away. If needed, send a written Notice of Error and follow the CFPB’s steps in this guidance.

Common scenarios and fixes

• County shows taxes unpaid but you escrow: Call your servicer and the County Treasurer immediately, then follow CFPB guidance on error notices. Utah’s lender-liability statute may apply if funds were available.
• Your payment jumps after analysis: The cause is often a higher tax bill, a rebuild of the allowed cushion, or repayment of a prior shortage over 12 months. Your statement should list the reason.
• You want to pay taxes yourself: Some loans allow escrow waivers, while many government-backed loans require escrow. Review your loan documents and Utah rules on reserve accounts in Utah Code §7-17-7.
• HOA special assessments: These are usually not paid from escrow by default. Policies vary, so check your loan documents and ask your servicer. For disclosure context on mortgage-related obligations, see this federal reference: Regulation Z commentary.

Buying in Daybreak or selling in South Jordan and want an extra set of eyes on taxes and escrow during your move? Get local, practical guidance from Adam Frenza and feel confident from offer to closing.

FAQs

When will my servicer pay Salt Lake County taxes?

• Servicers must pay on or before the county due date, which is typically November 30, and you can confirm payment on the County Treasurer site using the Pay My Property Taxes tools.

Why did my mortgage payment go up after escrow analysis?

• Servicers may adjust for a higher tax or insurance bill, rebuild the allowed two-month cushion, or collect a prior shortage over 12 months under CFPB Regulation X.

Do escrow accounts earn interest in Utah?

• Utah law generally requires interest to be credited annually to escrow balances, subject to exceptions described in Utah Code §7-17-3.

What should I do if my servicer misses the tax payment?

• Contact the servicer and the County Treasurer right away, send a written Notice of Error, and follow the steps in the CFPB’s guidance: problems with escrow accounts.

Can I remove escrow and pay taxes myself?

• Some loans allow escrow waivers while others require escrow, and Utah limits initial reserve amounts at closing under Utah Code §7-17-7.