There is a simple and reliable way to do it without a chart. Count the # of payments before the bill date. The impound amount should be 14 minus the number of payments before the bill is due. This accounts for the 2 month cushion that the banks are allowed to have. Some banks only have a one month cushion but it is always better to overestimate.

In your example, I assume that the bill is due in December. If so, then you will need to collect for 10 months.

Bob Hill:

The impound amount should be 14 minus the number of payments before the bill is due. This accounts for the 2 month cushion that the banks are allowed to have.

This is the calculation if the bill is paid 1 time per year.  If it is paid 2x per year, make it 8 instead of 14 (2 month cushion plus the 6 months the payment covers).  If taxes are collected 4x per year, then it would be 5.  Subtract the number of payments before the bill is due, but don't count the payment made in the same month that the bill is due.  For example, if taxes are due in October, you count the September payment but not October's payment.

Just ask any experienced escrow officer or title officer--they'll be happy to send you a copy.

California Tax Impound Schedule

Closing Month                                 1st Payment Due                 No. of Months Collected

November                                       January                                           5

December                                       February                                          6

January                                           March                                             7

February                                         April                                               2

March                                             May                                                3

April                                               June                                               4

May                                               July                                                 5

June                                              August                                             6

July                                               September                                       7

August                                           October                                           8

September                                     November                                        9

October                                          December                                        4