The original bill is not the payoff
The current amount can include the base tax, penalty, monthly interest, court costs, and a separate collection charge. Request a written payoff rather than estimating from the original bill.
Texas Delinquent Property Tax Resource
Texas Property Tax Foreclosure: Penalties, Deadlines and Options
If you have unpaid Texas property taxes, start by confirming the exact amount due, whether a collection attorney is involved, whether a lawsuit has been filed, and whether a tax-sale date has been scheduled. Your available options depend heavily on which stage the account has reached.
Can Texas property taxes lead to foreclosure?
Yes. A taxing unit holds a lien against the property and may file a lawsuit to foreclose that lien. If the court enters a judgment and the debt is not resolved, the property may eventually be sold at a tax auction.
Usual delinquency date
February 1, although some later-issued bills receive a postponed date.
February increase
Generally 6% penalty plus 1% interest.
Possible collection charge
Up to 20% when legally authorized and properly noticed.
Tax foreclosure
Usually involves a lawsuit and court-ordered sale.
How Delinquent Property Taxes Work in Texas
Texas does not impose a state property tax. Counties, cities, school districts, and other local taxing units assess and collect property taxes. A consolidated tax bill may include amounts owed to several taxing units.
In most cases, taxes are due by January 31 and become delinquent on February 1. If the original bill was mailed late, the bill may show a postponed delinquency date. Always use the date printed on the current bill or payoff statement.
Not receiving the bill may not stop the charges
Texas guidance states that failure to receive a tax bill generally does not invalidate the tax, lien, penalties, or collection process. Limited waiver rules may apply in specific circumstances.
Property tax foreclosure is different from mortgage foreclosure.
A mortgage foreclosure is commonly handled through a
nonjudicial deed-of-trust process. A property-tax foreclosure
generally involves a delinquent-tax lawsuit and court judgment.
Read the separate
Texas Mortgage Foreclosure Guide
if you are behind on mortgage payments instead.
Texas Delinquent Property Tax Penalty Timeline
For a typical current-year tax bill that becomes delinquent on February 1, the combined statutory penalty and interest generally follows the schedule below. Older tax years continue accumulating interest, so use the tax office’s payoff for the exact amount.
| Payment month | Typical penalty and interest | What changes |
|---|---|---|
| February | 7% | 6% penalty plus 1% interest |
| March | 9% | Penalty and monthly interest continue |
| April | 11% | Two additional percentage points from March |
| May | 13% | Balance continues increasing |
| June | 15% | Last month before the July penalty step-up |
| July | 18% | Penalty reaches 12%; interest totals 6% |
| August–December | 19%–23% | Interest generally continues at 1% per month |
The possible collection charge is separate.
A private attorney collecting for a taxing unit may add a charge
of up to 20% when the legal requirements and notice rules have
been satisfied. Do not assume it applies—or does not apply.
Check the current written payoff.
Estimate How Penalty and Interest Can Affect the Balance
This calculator applies the standard current-year percentage for the selected month. If your written payoff includes an authorized collection charge, you can include that separately.
Texas Property Tax Cost Calculator
Enter the original delinquent tax amount—not a payoff that already includes penalty, interest, or collection costs.
Estimated penalty and interest
$0
Estimated collection charge
$0
Estimated total balance
$0
Educational estimate only. It does not include court costs, older tax years, special bill types, deferrals, or every account-specific charge.
Which Property-Tax Collection Stage Are You In?
The wording on your most recent notice usually provides the clearest clue. These stages are practical descriptions, not formal legal classifications.
Bill due but not delinquent
The payment deadline has not passed. This is usually the least expensive point to resolve the bill or confirm an available installment option.
Delinquent with penalty and interest
The delinquency date has passed and the balance is growing. Request the current total and ask about payment arrangements.
Collection attorney or lawsuit
A collection charge, court costs, or legal deadlines may now apply. Do not rely on an older tax-office balance.
Judgment or scheduled tax sale
Confirm the sale date, written payoff, and deadline for cleared funds immediately. Your remaining timeline may be measured in days or weeks.
Options for Unpaid Property Taxes in Texas
The right option depends on the property type, owner eligibility, amount owed, equity, income, collection stage, and time remaining.
Pay the current payoff
Ask the collector or collection attorney for the exact total, accepted payment method, and deadline. Keep the receipt.
Request an installment agreement
Some collectors allow delinquent taxes to be paid over time. Availability, length, required payment, and default terms vary.
Check deferral eligibility
Certain owners who are 65 or older, disabled, or qualifying disabled veterans may defer taxes on an eligible residence homestead. A deferral delays collection; it does not erase the tax lien or balance.
Ask about a waiver
Texas law permits or requires waivers in limited situations, including certain tax-office errors or delivery problems. Deadlines and written-request requirements can apply.
Sell before the tax sale
If the property has enough equity and can close before the deadline, delinquent taxes may be paid through the title company from the sale proceeds.
Get legal or tax guidance
Seek qualified advice when a lawsuit, judgment, bankruptcy, disputed ownership, heirship issue, or scheduled sale makes the situation more complicated.
A partial payment may reduce the balance without stopping the process.
Ask in writing whether the proposed payment or agreement will
stop collection activity or a scheduled sale.
What Happens in a Texas Property Tax Foreclosure?
If delinquent taxes remain unresolved, the taxing unit may file a lawsuit. The case can include the tax, penalty, interest, collection charges, and court costs. After judgment, the court can order the property sold to satisfy the tax lien.
Before a scheduled tax sale
- Confirm the date with the attorney, officer, or county source shown on the notice.
- Request a written payoff that includes every taxing unit and charge.
- Ask when cleared funds must be received to stop the sale.
- Do not assume a pending application, listing, or partial payment postpones it.
After a tax sale
Some former owners have a statutory right to redeem the property after a qualifying tax sale. The deadline, payment amount, and applicable premium depend on the property and sale. Redemption can be expensive and should not be treated as an easy backup plan.
Do not confuse redemption with stopping the sale.
Redemption happens after a completed sale and can require the
former owner to repay the purchaser plus additional statutory
amounts. If a sale is approaching, speak with a qualified Texas
attorney about the actual notice, judgment, and deadlines.
Can You Sell a House With Delinquent Property Taxes?
Often, yes—if ownership can be confirmed, the property has enough value to satisfy the tax liens and other closing obligations, and the transaction can close before any scheduled sale. The delinquent taxes do not simply disappear; the title company typically obtains the payoff and disburses the required amount from closing funds.
A traditional listing may fit when:
- There is enough time before any sale date
- The property is ready for the market or can be prepared
- The expected proceeds can cover liens and selling costs
- Financed-buyer timing is realistic
An as-is cash sale may fit when:
- The property needs repairs or cleanup
- The remaining timeline is shorter
- Public marketing and buyer financing may create delays
- The seller wants to compare a direct offer with other options
A sale is not guaranteed to stop a scheduled auction. The title company, buyer, seller, taxing authorities, and any collection counsel must have enough time to complete the required payoff and closing steps.
What to Do Next: Delinquent Property Tax Checklist
- Locate the latest bill, notice, lawsuit, or judgment. Do not work from an older statement.
- Request the exact written payoff. Ask whether it includes every taxing unit, collection charge, court cost, and applicable tax year.
- Confirm the current stage. Ask whether the account is with a collection attorney, in a lawsuit, under judgment, or scheduled for sale.
- Write down every deadline. Include payment-plan dates, court dates, and the final date for cleared funds.
- Compare the realistic options. Consider payment, an agreement, an eligible deferral, selling, or qualified legal and tax guidance.
- Keep proof. Save names, dates, receipts, emails, payoff statements, and confirmation numbers.
Texas Property Tax Foreclosure FAQs
When do Texas property taxes become delinquent?
In most cases, property taxes are due by January 31 and become delinquent on February 1. A bill mailed late may receive a postponed delinquency date, so check the date printed on the current bill.
How much are Texas property-tax penalties and interest?
A typical bill becoming delinquent February 1 starts with 6% penalty and 1% interest. The combined amount generally reaches 15% in June and 18% in July. Interest generally continues afterward. Other charges may also apply.
Is the additional 20% collection charge automatic?
No. Texas law can permit an additional charge of up to 20% for private collection costs, but authorization, timing, and notice requirements apply. Check the current payoff to see whether it has actually been added.
Can I make payments on delinquent property taxes?
An installment agreement may be available, particularly for a residence homestead. Terms vary. Ask whether the agreement stops collection activity and what happens if a payment is missed.
Can I sell before a Texas property tax auction?
Sometimes. The transaction must have enough time and proceeds to satisfy the tax payoff and other closing requirements before the scheduled sale. Confirm the deadline rather than assuming a signed contract automatically stops the auction.
Can seniors defer property taxes in Texas?
Certain owners who are 65 or older, disabled, or qualifying disabled veterans may defer collection of taxes on an eligible residence homestead. The lien remains, and deferred amounts generally accrue interest.
Does a Texas tax sale have a redemption period?
Some qualifying tax sales provide a statutory redemption right, but the deadline and amount depend on the property and sale. Because additional premiums can apply, get legal guidance rather than relying on redemption as the plan.
Official Sources and Related Resources
- Texas Comptroller: Paying Your Property Taxes
- Texas Comptroller: Property Tax Penalty and Interest Chart
- Texas Comptroller: Property Tax Payment Options
- Texas Tax Code Chapter 33: Delinquency and Collections
- Texas Tax Code Chapter 34: Tax Sales and Redemption
- Texas Mortgage Foreclosure Guide
- Texas Probate and Inherited Property Guide
- Cash vs. Listing Calculator
This guide provides general educational information and is not legal, tax, or financial advice. The current bill, payoff, notices, court documents, and facts of the individual property control.
Need to Compare Selling With Your Other Options?
If the property has delinquent taxes and you are considering an as-is sale, share the property details and any known deadline. We can review whether a direct cash offer may be possible based on the property, title situation, equity, and available time.