Ever wonder why your mortgage payment changes when Franklin County sends out property tax bills? You are not alone. Escrow can feel confusing, especially with Hilliard’s semiannual billing and the way new construction and reassessments hit midyear. In this guide, you will learn how escrow works for Franklin County taxes, what affects your payment, and how to plan with confidence. Let’s dive in.
Franklin County taxes at a glance
Your Franklin County property tax bill is a bundle of local levies. It typically includes the school district, county, city or township, libraries, parks, and any voter-approved bonds. The total tax is the sum of all those parts, not a single countywide rate.
Ohio taxes are based on an assessed value that is a fraction of market value. Counties apply local millage to that assessed value to compute the bill. For state-level background on how Ohio property taxes work, review the property tax basics on the Ohio Department of Taxation.
Semiannual bills and timing
Franklin County issues property tax bills on a semiannual schedule. You will typically see two installments each year. Exact due dates and any penalty timelines are set by the Treasurer and posted on the Franklin County official site.
Because bills arrive twice a year, your mortgage servicer must have enough in escrow to cover those larger, periodic payments. That timing influences how your monthly escrow deposit is calculated.
Why lenders use escrow
Most lenders require an escrow account to collect for property taxes and homeowner’s insurance. You pay a portion each month with your mortgage. When Franklin County taxes come due, your servicer pays the bill from your escrow balance.
How escrow is estimated
Here is the standard method most lenders use:
- Estimate the next 12 months of taxes and insurance. Often they start with the last bill and add any known changes.
- Divide by 12 to set your monthly escrow deposit.
- Add that amount to your principal and interest payment.
- Adjust after an annual escrow analysis if actual bills differ from estimates.
The RESPA cushion rule
Federal rules under RESPA allow a limited escrow cushion to prevent shortfalls. Servicers can generally keep up to two months of escrow payments as a cushion. For consumer guidance on escrow accounts and annual statements, see the CFPB’s resources.
Hilliard’s local factors to watch
In Hilliard, your total tax reflects multiple levies, including city and school district components. Local operating or bond levies can change over time based on elections. To stay current on municipal updates and contact points, use the City of Hilliard’s website.
Because billing is semiannual, your servicer plans disbursements around those two due dates. If you close shortly before a payment cycle, the lender may collect a higher initial escrow deposit so the account can make that first large payment on time.
New construction and supplemental bills
If you buy a newly built home, you might see low initial tax bills if the Auditor has not yet added the full value of the improvements. After the home is reported and valued, taxes adjust.
That update can trigger one of two outcomes: a regular bill at the next cycle with the new value, or a supplemental or omitted bill that covers part of the year when the improvement was first assessed. This is a common source of first-year escrow shortages for new construction buyers in Hilliard.
What can you do? Ask your builder and lender about timing, and be ready for your first escrow analysis to adjust upward once the full value is on record. You can also monitor your property details through county resources starting from the Franklin County official site.
Reappraisals and changing payments
Ohio counties conduct periodic reappraisals and value updates. After a reappraisal, your assessed value may change, which can increase or decrease taxes depending on your area and levies. Franklin County posts reappraisal and valuation updates through Auditor channels linked from the county site.
When tax amounts change, your servicer updates your escrow at the next annual analysis. If your escrow paid out more than expected, you may see a shortage and a higher monthly payment to catch up. If it paid out less, you could receive a small refund or lower payment.
Step-by-step: estimate your escrow
Use this simple, illustrative example to understand the process. Replace the assumptions with your own numbers from the Franklin County Auditor’s property record.
- Estimate your annual taxes
- Example market value: $300,000.
- Example assessment ratio: 35 percent of market value. Assessed value: $105,000.
- Example combined rate: 60 mills, which is $60 per $1,000 of assessed value.
- Annual taxes: $105,000 × 60 ÷ 1,000 = $6,300. This is a hypothetical example. Use your property’s actual assessed value and levy breakdown from county resources starting at the Franklin County site.
- Add insurance
- Example annual homeowner’s insurance: $1,200.
- Combined yearly bills: $6,300 + $1,200 = $7,500.
- Set the monthly escrow deposit
- $7,500 ÷ 12 = $625 per month added to your mortgage payment.
- Account for the RESPA cushion
- Up to two months of escrow payments may be kept as a cushion. In this example, 2 × $625 = $1,250. Your servicer may collect this upfront or build toward it over time. For regulatory details, visit the CFPB.
- Plan for changes
- If the next reassessment or a new levy raises your annual taxes, your monthly escrow will adjust at the next analysis. If a supplemental bill arrives for new construction, expect a one-time shortage or a payment plan spread over 12 months.
Paying taxes without escrow
If your lender allows it, or you own your home free and clear, you can pay taxes directly. This gives you control, but you must track due dates and avoid penalties. For bill schedules, payment options, and penalty rules, start with the Franklin County official site to reach the Treasurer’s resources.
Direct pay can make sense for experienced homeowners who budget throughout the year. If you prefer predictable monthly payments, escrow is usually simpler.
What to check before closing
- Pull the property record through county resources to confirm assessed value, taxable value, and levy breakdown. Use those numbers rather than countywide averages.
- Note the semiannual due dates and any grace periods listed by the Treasurer on the Franklin County site. Keep them on your calendar.
- Buying new construction in Hilliard? Ask when the improvement will be added to the tax roll and whether a supplemental bill is likely.
- Request your lender’s initial escrow estimate. Confirm if they included a two-month cushion and how they handle shortages.
- If you may qualify for exemptions or relief programs, learn more through the Ohio Department of Taxation and county channels.
You do not have to navigate this alone. If you want help estimating taxes for a specific Hilliard address, reading your county record, or planning for escrow, reach out to The Oracle Group. We pair local expertise with clear, step-by-step guidance so you can move forward with confidence.
FAQs
How does escrow handle Franklin County’s semiannual tax bills?
- Your servicer collects 1/12 of the estimated yearly taxes each month and pays the two larger Franklin County bills when due, using a small cushion allowed under RESPA to prevent shortfalls.
Why did my mortgage payment change after my first escrow analysis?
- Lenders perform an annual escrow analysis and adjust for any difference between the estimated taxes and the actual Franklin County bills, which may raise or lower your monthly escrow.
What if I buy new construction in Hilliard and receive a supplemental bill?
- Once the Auditor adds your home’s full value, a supplemental or updated bill can arrive, often creating a temporary escrow shortage that your servicer will collect as a lump sum or spread over 12 months.
Who sets tax due dates and penalties in Franklin County?
- The Franklin County Treasurer sets the semiannual billing schedule and penalty rules, which are posted through the county’s official site.
Can I pay property taxes without using an escrow account?
- Yes, if your lender permits it or you have no mortgage, but you must manage due dates and payments directly through the Treasurer’s resources on the Franklin County site.
How can I estimate taxes for a Hilliard home?
- Start with the property’s assessed value and levy breakdown from county resources accessible via the Franklin County site, then apply the current levies to project annual taxes and set your escrow estimate.
