I Was Hit With a 23% Property Tax Penalty – What Now?


Did the July property tax penalty shock you when you received the notice? The collection fees, penalties, and interest on property taxes will only grow and can be around 48% of your original property tax bill in the first year alone. If you are unable to pay your property tax account on the due date, it is advisable to make alternative arrangements well before January 31, whether with your bank, local tax authorities, or a property tax lender such as American Finance & Investment Company, Inc. (AFIC). You received a big property tax penalty, but what now?

When Are Property Taxes Considered Late?

Commercial and personal property owners must pay their property tax on January 31st of each year, and your taxes are considered late on February 1st when the authorities start charging penalties and interest on the outstanding property tax amount.

What is the Biggest Property Tax Penalty of the Year?

The biggest property tax penalty is implemented on July 1st with two additional increases, including an up to 20% penalty specifically for attorney fees. Avoid this penalty at all costs. It is better to pay your property tax bill on time, or contract with one of the leading property tax loan companies, AFIC, to do so on your behalf.


Why is the July Property Tax Penalty so High?

Collecting delinquent taxes places an additional burden on local authorities, and the cost is recovered from taxpayers. Why is the July property tax penalty so high? There are two main reasons.

It is Outlined in the Texas Tax Code

Besides the other monthly penalties you pay for delinquent property taxes, there are two July increases in the Texas Tax Code, as explained by the Texas Comptroller of Public Accounts. It includes an accrued 12% that stops increasing in penalties and a collection penalty of up to 20% of total outstanding charges on July 1st.

Taxing Authorities Use This Penalty to Pay Fees

The July 1st collection penalty that accrues up to 20% is set aside solely to cover attorney fees. Collecting outstanding property taxes is costly, and other than the lawyer’s fees, there are also court costs and other legal expenses if a suit is filed against a property owner.

What Happens After the July Penalty?

Unfortunately, the July penalty is not the end of your challenges as a delinquent taxpayer. The penalties, interest, and collection fees keep increasing, and you might have your own legal fees to cover as the collection penalty’s purpose is to pay a law firm to pursue collection action against you.

What Are Your Options?

Don’t be discouraged, you can manage the high property tax penalties you were hit with. A reputable property tax loan service provider that can help you immediately, as the debt should be cleared as soon as possible to cut down on penalties, interests, and fees.

How You Can Avoid Property Tax Penalties Without a Huge Payment

You know the Texas property tax penalties are increasing, but you are worried about contacting a property tax loan company because you think the loan repayment amount will be huge. 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.

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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