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What are property taxes in Section F of a Loan Estimate?
Updated November 2026 · Every dollar figure is an illustrative example, not a quoteProperty Taxes in Section F is a tax bill paid at closing, which happens only when a bill falls due between closing and your first payment (prorations with the seller are settled in the Calculating Cash to Close table, not here); on most purchases the line is blank. The ongoing monthly taxes are a different place on the form: page 1's Estimated Escrow, and Section G's deposit into the escrow account.
Where it is on the form
Page 2, Section F, Prepaids, as Property Taxes (__ months). Blank on most estimates. The same taxes appear monthly on page 1 in Projected Payments (inside Estimated Escrow or Estimated Taxes, Insurance & Assessments) and in Section G as the initial escrow deposit.
Property taxes themselves run from well under 1% to over 2% of the home's value a year depending on the state and county. Whether any of it lands in Section F depends only on timing: a bill due in the weeks after closing has to be paid from closing, and a bill the seller already paid for the year is reimbursed to the seller through the proration on the settlement statement.
The trap in property taxes is not Section F, it is the monthly estimate on page 1. Lenders often use the seller's current tax bill, which in many states reflects a capped or homestead-reduced assessment. When you buy, the assessment often resets to the price you paid and the bill can jump the following year. Then the escrow account runs short and your payment rises. Ask the lender, or look up the county's rate yourself, and use the tax on the full purchase price.
Prorations are the other thing that happens at closing. If the seller has paid the year's taxes, you reimburse them for the days you will own the home; if the bill is unpaid, the seller credits you for their days. That appears on the settlement statement and in the Calculating Cash to Close table, not in Section F.
Can you shop for it?
No. The tax is set by the county. What you can check is accuracy: the right parcel, the right tax year, the right exemptions, and whether the lender used the current owner's reduced assessment when yours will reset at the sale price.
Can it change between the Loan Estimate and closing?
No tolerance limit. Property taxes and other prepaids are estimates, and the actual bill and the actual closing date set the number on the Closing Disclosure. A big jump is not a rule violation, but it is worth asking what changed.
Questions to ask the lender
- What annual tax figure did you use, and is it the seller's current bill or an estimate at my purchase price?
- Is a tax installment due between closing and my first payment, and is it on this line?
- Which exemptions did you assume, and do they transfer to me?
Red flags
- A monthly tax estimate based on the seller's capped assessment on a home whose assessment will reset at sale.
- A Section F tax line on a purchase where the seller has already paid the year and the proration is handled elsewhere, which double-counts it.
- An escrow estimate that assumes an exemption you do not qualify for.
Questions people ask
Why is Property Taxes blank in Section F?
Because no tax bill falls due between your closing and your first payment. That is the usual case. Your ongoing taxes are collected monthly through escrow instead, shown in Section G and on page 1.
Why are property taxes on my Loan Estimate lower than what I expect to pay?
Lenders often use the seller's current bill, which may reflect a capped or homestead assessment that resets when you buy. Use your county's rate on your purchase price for a truer number, and tell the lender so the escrow estimate and your monthly payment are realistic.
Can property taxes change at closing?
Yes, without limit. They are an estimate on the Loan Estimate and the actual bill and the actual closing date set the number. A big change is worth a question but is not a tolerance violation.
Only have one quote? That's the problem.
Tell us the rate and the fees you were quoted. It is free, there is no credit pull, and nobody calls you. We check whether another lender beats it, fees included. Or start with the free Loan Estimate checker, which reads your rate, points and Section A and flags anything out of the ordinary.
Check my quoteEvery dollar figure on this page is illustrative. Fee ranges are general observations, not a survey or a quote, and are not a loan offer, approval, commitment to lend, or Loan Estimate. Your actual rates and fees depend on qualification with lenders, your state and county, and your closing date. The tolerance rules described are the federal TRID rules in general terms; the rule itself and your own Loan Estimate and Closing Disclosure decide how it applies to your loan. comparemyloan does not negotiate with lenders, lock rates, or take loan applications.