Scenarios

Scenario 1

Single family home has a total of tax of $4,000. It receives a lottery credit of $100 and a first dollar credit of $100.
Total bill: $3,800.

First installment (due 1/31/23): $875. ($1,000 - $100 lottery credit - $25 of first dollar credit)

Second installment (due 3/31/23): $975. ($1,000 - $25 of first dollar credit)

Third installment (due 5/31/23): $975. ($1,000 - $25 of first dollar credit)

Fourth installment (due 7/31/23): $975. ($1,000 - $25 of first dollar credit)

Scenario 2

Same tax bill as above, but the taxpayer varies the amount of the payments.

First installment payment on 1/31/23: $1,000. ($875 applied to 1st installment, $125 credited to 2nd installment).

Second installment payment on 3/31/23: $850. ($975 originally due reduced by $125 paid with 1st installment payment)

Third installment payment on 5/31/23: $975. (reverts to original schedule)

Fourth installment payment on 7/31/23: $975. (reverts to original schedule)

Scenario 3

Same tax bill as above, but the taxpayer varies the amount of the payments.

First installment payment on 1/31/23: $875.

Second installment payment on 3/31/23: $2,925. (Taxes are now fully paid, and no further payments are necessary.)

Scenario 4

In this example the same taxpayer as above forgets to pay the March 31st installment.

First installment payment on 1/31/23: $875.

Second installment payment on 3/31/23: $0.

The bill is now delinquent. The total outstanding ($2,925) comes due immediately. In addition, interest of $29.25 and a penalty of $14.63 is charged for each month of delinquency (February, March, and April). Therefore, in April, the total due is $3,056.63 ($2,925 tax, $87.75 for three months interest, and $43.89 for three months penalty.) On the first of each month, an additional $43.88 will be added to the balance until the bill is paid.

Scenario 5

In this example the taxpayer prefers to pay in two installments. The actual installments due are the same as in example #1 above ($875, $975, $975, and $975).

First AND second installment payment on 1/31/23: $1,850.

Third AND Fourth installment payment on 5/31/23: $1,950.

Note that the taxpayer is not REQUIRED to pay the entire balance in May, but he wished to maintain his past practice of only paying twice. For another approach, see example 6 below.

Scenario 6

In this example the taxpayer has saved enough money to pay approximately half of the total tax bill. The total bill is $3,800. The four installments are $875, $975, $975, and $975.

Payment of $1,850 is made by 1/31/23.

Payment of $975 is made by 5/31/23. (The large payment in January makes a March payment unnecessary.)

Payment of $975 is made by 7/31/23.