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A Guide to Delinquent Property Tax Penalties in Texas

delinquent property taxes Texas

If you, as a homeowner in Texas, have failed to pay your property tax bill by January 31st, you will be subject to property tax penalties, additional interest, and fees that are collectively known as delinquent property taxes. Here’s a quick guide to how delinquent property taxes in Texas work and the best solution to minimize these penalties.

What Are the Typical Penalties For Paying Property Taxes Late in Texas?

Penalties for late payment of property taxes differ depending on where your tax delinquent property is located.

Typically, you will incur an immediate penalty of 6% of your original tax bill on the first business day of February, 1% interest rate per month for each month it goes unpaid in full until June 30th and an additional 2% penalty from July 1st. You will also owe 1% per month in interest (or 12% per year) for as long as you remain behind on your property taxes. As a result, you can incur 38% of your tax bill in property tax penalties, interest, and collection fees in just 5 months of nonpayment.

Additional penalties include collection and attorney fees that can be as high as 20% of your total property tax bill at the time of collection.

On top of all that, you will owe 1% as a monthly penalty in interest (or 12% per year) for as long as your bill is unpaid.

With tax rates and penalties being so high in Texas, it’s easy for tax-delinquent properties to derail the financial stability of property owners. The rapidly increasing penalties and interest make the entire delinquent property tax bill even more challenging to pay.

What Happens if I Don’t Pay My Delinquent Property Taxes in Texas?

Two things will happen if you leave your delinquent property taxes unpaid:

  1. Firstly, your bill will continue to accrue interest and penalties.
  2. Secondly, your taxing authority is able to start foreclosure proceedings on your tax-delinquent property. This is because, in Texas, a tax lien is placed on every property by the taxing authority on January 1st of the year. Once the property taxes for the preceding tax year are paid, the lien is lifted. If the taxes go unpaid, the taxing authority may legally start the foreclosure process following the January 31st payment deadline.

By law, the taxing authority has to notify you in writing that they are starting the foreclosure process against you. You will have limited time to either pay the unpaid property taxes at the tax collector’s office in full or present a valid defense in court to halt the foreclosure process. If you do not, your property will be sold in a tax sale in order to settle the total unpaid balance on the outstanding tax bill.

How to Pay Delinquent Property Taxes in Texas

Losing your home or becoming financially burdened due to a tax-delinquent property is devastating, financially and emotionally. Fortunately, there is a solution in the form of property tax loans, which can cover all the penalties, interest, and administration fees associated with your property tax bill as well as the original amount.

When looking for a property tax loan provider, it is essential that you speak to a company that is ethical, responsible, and licensed to assist you. This will ensure that you get compassionate, fair treatment and an affordable loan with no hidden catches or misleading information.

About AFIC

American Finance & Investment Co., Inc. (AFIC) offers our clients an affordable, hassle-free way to manage their Texas property taxes and avoid crippling penalties and interest. We can ensure that your account with the local government tax office is paid in full and will work out a manageable repayment plan for you. AFIC can provide you with an instant quote by completing the form on our homepage. For qualifying properties, we can help you pay off your delinquent taxes and offer you the following benefits:

  • Quick and completely online process
  • No money down
  • No credit check
  • Free 30-day rate match
  • Match competitors and beat their rate by 1%
  • Avoid high penalties and foreclosure

We pride ourselves on finding solutions to suit the unique needs of our clients. If you would like to discuss our property tax loans, please contact our experienced team at AFIC today.


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YOUR TAX OFFICE MAY OFFER DELINQUENT TAX INSTALLMENT PLANS THAT MAY BE LESS COSTLY TO YOU. YOU CAN REQUEST INFORMATION ABOUT THE AVAILABILITY OF THESE PLANS FROM THE TAX OFFICE.

If you are over 64 or disabled, don’t get a property tax loan, contact your tax office about a deferral.

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