What Happens When Texas Property Taxes Go Delinquent
Unpaid Texas property taxes do not sit still. The penalty schedule is fixed in statute and it compounds faster than most people expect.
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Before you read this
The dates that drive everything
Texas property taxes are assessed as of 1 January. Bills usually go out in October and are due on receipt. The date that matters is 1 February: on that day an unpaid bill becomes delinquent, and the statutory penalty schedule starts.
A tax lien attaches to the property on 1 January each year to secure that year’s taxes (Texas Tax Code §32.01), and it takes priority over most other liens. That priority is why delinquent taxes have to be dealt with at closing before almost anything else.
How the penalty builds
Under Chapter 33 of the Texas Tax Code, a delinquent bill takes a penalty starting at 6% in February plus 1% interest, and the penalty climbs each month it stays unpaid, reaching 12% by July, with interest continuing to accrue.
Then comes the step that catches people. If the taxing unit has contracted with a law firm for collections, §33.07 permits an additional collection penalty of up to 20% to be added on 1 July. A bill that looked manageable in January can be materially larger by mid-summer without anything else having happened.
Options that exist before a suit
Several relief routes are written into the Tax Code and are worth asking your county tax office about directly.
- Installment agreements. Taxing units may enter into installment arrangements for delinquent taxes.
- Homestead deferral for owners 65 or older, or disabled. Tax Code §33.06 allows a qualifying owner to defer collection on their residence homestead. This is a deferral, not forgiveness — the taxes and interest keep accruing and become due when the deferral ends, typically on sale or on the owner’s death.
- Exemptions you may not have claimed. Homestead, over-65, disability and veteran exemptions reduce the taxable value going forward and are frequently unclaimed.
- Value protests. If the appraised value is wrong, the deadline to protest is separate from the payment deadline and is easy to miss.
Tax suits and tax sales
If a delinquency continues, a taxing unit can sue to foreclose its lien, and the property can be sold at a tax sale. Tax sales are not the same as mortgage foreclosures, and one difference matters enormously: tax sales carry a right of redemption.
Under Tax Code §34.21, an owner of a residence homestead or agricultural land generally has two years to redeem after a tax sale, by paying the purchaser what they paid plus a premium set by statute — 25% in the first year and 50% in the second. For most other property the period is six months.
Where selling fits
Delinquent taxes do not stop a sale. They get paid out of the proceeds at closing, exactly like a mortgage payoff, and the title company handles it. If the property has equity above what is owed, selling clears the debt and you keep the difference.
Where it does not work is when the total owed — taxes, penalties, collection fees, and any mortgage — approaches or exceeds what the property is worth. We will run those numbers with you before either of us spends time on it, and if it does not clear we will say so.
Common questions
When do Texas property taxes become delinquent?
On 1 February for the previous year's taxes. The statutory penalty and interest schedule in Texas Tax Code Chapter 33 begins that day.
How much do penalties add up to?
The penalty starts at 6% plus 1% interest in February and increases each month, reaching 12% penalty by July with interest continuing. If the taxing unit has contracted for collection, section 33.07 permits an additional penalty of up to 20% on 1 July.
Can I sell a house that owes back taxes in Lubbock County?
Yes. Delinquent taxes are paid from the sale proceeds at closing through the title company, the same way a mortgage is paid off. The question is only whether the property is worth more than the total owed against it.
I am over 65 and cannot pay my taxes. What are my options?
Texas Tax Code section 33.06 allows an owner who is 65 or older, or who is disabled, to defer collection on their residence homestead. It is a deferral rather than forgiveness — the amount keeps growing and comes due later, usually on sale or death. Ask your county tax office about it, and speak to an attorney about what it means for your heirs.
Is there a redemption period after a Texas tax sale?
Yes, unlike a mortgage foreclosure. Under Tax Code section 34.21 a residence homestead or agricultural land generally has a two-year redemption period with a statutory premium of 25% in the first year and 50% in the second. Most other property has six months.
A last word on what we are
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