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How Does Property Tax Collection Work in Texas?

Property tax loan Texas

Texas isn’t known for high taxation levels with one exception – our property taxes. The property taxes are among some of the highest in the country, at an average of 2.18% of the estimated value of your home for the state of Texas as a whole. If you’re new to the state or you’re a new property owner, you’ll need to get to grips with the basics of this system. Here is a quick guide from AFIC, one of the leading property tax loan companies in Texas:

A Brief Background of Property Taxes in Texas

Texas is one of the few states in the USA not to impose income tax on its citizens, which is something most residents really enjoy. As a result, the counties need to get their funding for public services like schools, libraries, parks, roads, and emergency services from another source, which is where property taxes come in.

Property taxes in Texas are set at a local government level as there are no state property taxes, so they’ll be different from county to county. For example, property taxes in Dallas county are an average of 2.74% of your property’s estimated value (about $6,850 on a $250,000 home). The same home in San Antonio will cost you around $6,6500 as it has an average of 2.66% property tax. In Terrell County, you’ll pay around $5,600 in property taxes on that same house, with an average 2.24% property tax.

The Property Tax System in Texas

There are three basic steps to collecting property taxes in Texas:

  • Step One: Appraised values for properties in each district are set by that district’s Chief Appraiser on January 1 of each year. A lien attaches to each taxable property to ensure payment.

  • Step Two: Property owners may dispute the appraised value of their property through the appraisal review board. You should receive your property valuation for the next year’s property taxes between April and May of the current year, and disputes are usually heard between May and June of the current year.

  • Step Three: Actual tax rates are set in accordance with annual tax budgets by each local government between August and September for next year’s tax bill. Property tax bills are then sent out in October, and collection by local government agencies can begin. These taxes must be collected by January 31st of next year as penalties will start being imposed from February 1st.

Property Tax Penalties

Essentially, you have from October (when you receive your bill) to January 31st of the next year to pay your property taxes for the previous year. It is absolutely essential to plan for this tax bill and make this payment, as penalties for non-payment can be severe at around 43% of your original tax bill within one year of it’s due date. Without payment, the local government will take measures to recoup their money, which can result in foreclosure proceedings.

However, if you are unable to pay your property tax bill and want to avoid penalties, there are affordable solutions designed to assist you in making this payment and avoiding foreclosure on your home.

Texas Property Tax Loans

Even if you have the best intentions, circumstances can crop up in anyone’s life that makes paying property taxes a challenge. Reputable property tax loan companies like American Finance & Investment Company, Inc. (AFIC) understands the cash flow challenges that home and business owners face, and can step in and give you a loan to pay property taxes – no credit check or deposit required. This means fast, effective tax relief that allows you to keep your home or business. Our compassionate, skilled team will settle your bill quickly and structure your loan repayments to be as affordable as possible.

To get a property tax loan in any Texas county, get a loan estimate by completing the form below.


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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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