Behind on Property Taxes in Texas?

Back Taxes in Texas: Your Options

This page explains what happens in Texas when property taxes on land go unpaid. It covers the February 1 delinquency date, the penalty and interest schedule, the extra collection penalty many counties add on July 1, the tax lawsuit, the sheriff or constable sale, and the redemption period after the sale. It is written for owners of vacant land, including people who inherited land with back taxes.

Back taxes do not stop you from selling. Until a tax sale happens, you still own the land, and you can pay the taxes or sell the land and have the taxes paid from the sale at closing. Even after a sale, Texas law gives some owners a short window to redeem. This page is general information, not legal or tax advice. For your own case, ask your county tax assessor collector or a Texas attorney.

When Texas property taxes become delinquent

Each taxing unit, such as the county, school district and city, mails a tax bill by October 1 or as soon after as it can (Tax Code 31.01). In many counties one office, the county tax assessor collector, collects for all units on a single bill.

Taxes are due when you receive the bill. If you do not pay before February 1 of the next year, the taxes are delinquent (Tax Code 31.02). Some taxing units offer a split payment option; if you use it and miss the second payment before July 1, that payment is delinquent too (Tax Code 33.01).

Penalties and interest on late taxes

Texas adds both a penalty and interest (Tax Code 33.01). The penalty is 6 percent for the first month, plus 1 percent for each later month until July 1. On July 1 the penalty becomes a flat 12 percent. Interest is 1 percent for each month or part of a month, and it keeps running until you pay.

Many taxing units also add a collection penalty to taxes still unpaid on July 1. A unit can do this only if it has hired a collection attorney, and the penalty cannot exceed the attorney's contract rate (Tax Code 33.07). State law caps that rate at 20 percent of the tax, penalty and interest collected (Tax Code 6.30). The collector must mail you notice 30 to 60 days before July 1. A similar penalty can apply to certain taxes that become delinquent on or after June 1 (Tax Code 33.08).

So by July of the first year, a bill can be more than 30 percent higher than the original tax, and it keeps growing with interest. Ask the collector for a payoff figure for the date you plan to pay.

• February: 6 percent penalty plus 1 percent interest
• Each month to June: penalty and interest each rise 1 percent
• July 1: penalty is 12 percent, plus 6 percent interest so far
• July 1: a collection penalty of up to 20 percent may be added
• After July: interest keeps adding 1 percent a month

What the county does next

Texas does not sell tax lien certificates. Instead, a taxing unit can sue you to collect. The suit can start any time after the taxes become delinquent (Tax Code 33.41). The suit is filed in a court in the county where the land is. Court costs, the cost of finding owners and legal descriptions, and sale expenses are added to what you owe (Tax Code 33.48).

If the court rules for the taxing unit, it orders the land sold to pay the judgment (Tax Code 33.53). The sheriff or a constable sells it at a public auction. A county can allow online auctions (Tax Code 34.01). If no one bids enough, the land can be struck off to the taxing unit, which can resell it later.

If the sale brings in more than the judgment and costs, the extra money is held for the court. A former owner must file a claim for it before the second anniversary of the sale (Tax Code 34.04).

Redemption: getting your land back

Texas gives owners a right to redeem after a tax sale, but the window is short for most vacant land (Tax Code 34.21). If the land was a residence homestead or was designated for agricultural use when the suit was filed, you have 2 years from the date the buyer's deed is recorded. For other land, you have 180 days.

To redeem from a private buyer, you pay what the buyer bid, the deed recording fee, and any taxes, penalties, interest and costs the buyer paid on the land, plus a premium. For homestead and agricultural land the premium is 25 percent in the first year and 50 percent in the second year. For other land the premium cannot exceed 25 percent. If you cannot find the buyer, the law lets you pay the county assessor collector instead after you sign an affidavit (Tax Code 34.21).

Redeeming after a sale costs much more than paying before the suit ends. If you are behind, act before the sale date.

Your options if you are behind

You have more choices before a lawsuit is filed than after. These are the common ones. Ask the collector which ones apply to your account.

• Pay in full. Ask the collector for a payoff amount good through a set date.
• Ask for an installment agreement. A collector may agree to monthly payments for up to 36 months. For a residence homestead, the collector must offer one if you have not had one in the past 24 months (Tax Code 33.02). Penalty and interest generally keep accruing on the balance.
• Redeem before the deadline if the land has already been sold at a tax sale (Tax Code 34.21).
• Sell the land. We make a cash offer within 24 hours, charge no fees or commissions, pay closing costs and can close in as few as 7 days. The back taxes are paid at closing from the sale. Get a cash offer for your Texas land.

Selling land with back taxes in Texas

A tax lien stays on the land until the taxes are paid, so a buyer's title company will find it. That does not stop a sale. At closing, the delinquent taxes, penalties, interest and any collection penalty are paid from the sale price, and you get the rest.

We buy land with back taxes, liens and title issues, land with no road access, and land from heirs and estates. If a tax suit has been filed, tell us. A sale can still close before the auction if the taxes are paid in full at closing. After an auction, only the owner's right to redeem is left, and the time is short.

Where to check your tax status

Your county tax assessor collector can tell you what is owed, which years are delinquent, whether a suit has been filed and the payoff amount. Many counties post balances online. The Texas Comptroller keeps a directory of county appraisal districts and tax offices. Have your account or parcel number ready. Dates, online options and procedures vary by county, so confirm with the office.