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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, 2020, you will be subject to 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 Typical Delinquent Property Taxes in Texas?

Penalties for late payment of property taxes differ depending on where your 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 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 your bill is unpaid. As a result, you can incur 38% of your tax bill in penalties, interest, and collection fees in just 5 months of nonpayment.

In addition, collection fees 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% per month in interest (or 12% per year) for as long as your bill is unpaid.

With property tax rates and penalties being so high in Texas, it’s easy for delinquent property taxes to derail homeowners financially and, therefore, making cash flow and subsequent property taxes 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.
  2. Secondly, your taxing authority is able to start foreclosure proceedings on your property. This is because 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 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 delinquent property taxes 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 outstanding tax bill.

How to Pay Delinquent Property Taxes in Texas

Losing your home or becoming financially burdened due to delinquent property taxes is devastating, not only financially but also emotionally. Fortunately, there is a solution in the form of property tax loans, which can cover all the penalties, interest and 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.

At American Finance & Investment Company, Inc. (AFIC), our aim is to help you get back on your feet and rebuild your financial security. With over 70 years of industry experience, an A+ rating on the Better Business Bureau, and a team that is dedicated and passionate about helping Texas home and business owners, we’re ready to offer you the assistance you need to pay delinquent property taxes.

In addition to our fast, efficient service, we offer several other great benefits:

  • We require no money down

  • We don’t need a credit check

  • We bring all documentation to you for your convenience

  • We offer a no-payment option for 60 months

  • After you close with us, we will match a competitor’s terms or let you move to them at no charge

To find out more about our property tax loans and how we can help you pay delinquent property taxes in Texas, please contact us today or fill in the form below. You will get a loan estimate instantly.


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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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