How Does Property Tax Collection Work in Texas?

Property tax loan Texas

When it comes to the rates of property taxes by state, Texas nears the top of the list. Texas property taxes are among some of the highest property taxes in the U.S, at an average of 2.18% of the estimated value of your home. 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 companiesin Texas :

A Brief Background of Property Taxes in Texas

The high property taxes in the Lone Star State are needed to compensate for the fact that there is no individual income tax in Texas. Texas is one of the 9 states in the USA that does not impose income tax on its citizens, which is something most residents really enjoy. However, 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 its 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 preventing foreclosure on your home.

Texas Property Tax Loans

Even if you have the best intentions, circumstances can crop up in anyone’s life that make paying property taxes a challenge. Reputable property tax loan companies like American Finance & Investment Company, Inc. (AFIC) understand 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 quickly settle your Texas property tax bill and structure your loan repayments to be as affordable as possible.

About AFIC

AFIC’s property tax loans can provide fast, affordable relief from the often unmanageable demands of county and city tax offices throughout the state. You can receive 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.

Ernest Eisenberg

Ernest Eisenberg, President of American Finance & Investment Co., Inc. (AFIC), brings a wealth of expertise in non-traditional financing, including property tax loans and non-bank mortgage solutions. His vision is characterized by a commitment to offering flexible financing solutions to Texas property owners.

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APR between 8.0% and 25.0% for loan terms between 12 and 120 months. For example 8.5% APR, $25,000 loan, $750 in Closing Costs, 120 Monthly Payments of $303.32.


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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