When Do You Start Paying Property Taxes on a New Home in Texas?

Property%20taxes%20on%20a%20new%20home%20in%20texas.png One thing all Texas property owners know is that they have to pay property taxes. What is less certain for some is when exactly they are required to pay them. Specifically, how long after buying a new home will your first tax payment become due?

Does The Seller or Buyer Pay the First Property Tax Bill?

The simple answer is that tax bills are mailed out on October 1st every year, and payment is due the following January, regardless of who owns the home and when it changed hands. The question is, if you buy a home halfway through the year, how much of the annual tax burden are you liable for?

In this case, the seller should pay the taxes accrued during the months when they still owned the property, while you, as the buyer, should take up the remainder of the burden. In this scenario, you only pay the taxes due after the closing. So, the seller is typically responsible for paying the amount of property taxes equal to the time before the closing date. For example, if the closing date is in August, the seller will be responsible for 8 months worth of taxes. Whereas the buyer would only be responsible for four months’ worth of taxes. If the seller has already paid the full years’ value of property taxes, you may be responsible for reimbursing those four months. The seller’s agreement, however, should disclose which party pays what.

However, there are still other factors to consider. It often depends on the specific deal signed between the seller and buyer. In some cases, the buyer might be required to pay all the taxes for the year or another agreed-upon amount before closing the deal. In others, the seller might offer to pay the taxes to sweeten the deal and expedite the sale. Additionally, the realtor will also need to determine if the property has an outstanding tax lien. Once determined, the exact amount the buyers and sellers each owe can be calculated.


You May Need to Consider a Property Tax Loan

If you go into the purchase of your new property uncertain of the tax requirements, you may find yourself with an overdue account by the beginning of the next year, accruing penalties and interest. It is then advisable to get in touch with a property tax lender to help you alleviate the burden. You can immediately settle your debt to the tax authorities and pay the lender back on a schedule that suits your budget.

American Finance & Investment Co., Inc. (AFIC) is an OCCC-registered property tax lender. We offer our clients an affordable, hassle-free way to manage their Texas property taxes. 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, or if you need any additional advice on the requirements of your local tax authorities and the details of your property taxes, 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.

Loans For Your Unpaid Property Tax
No Money Down
No Credit Check
Rate Match Guarantee
Online Process
Avoid Foreclosure

Get your Loan Quote
in under 1 Minute!

Rates as Low as 8.0% (8.51% APR*) $25,000 loan,
$750 in Closing Costs, 120 Monthly Payments of $303.32

My Property Tax Loan Quote

Get your estimate in under 1 minute!
Fill out the form below to start your loan quote

Pay Us Later
Pay Us Later
Interest Only
Interest Only
Escrow Protection
Escrow Protection
Rate Buster
Rate Buster

My Property Tax Loan Quote

Get your estimate in under 1 minute!
Fill out the form below to start your loan quote

Proudly Serving Austin (Travis County & Williamson County), Dallas (Dallas County), El Paso (El Paso County), Fort Worth (Tarrant County), Houston (Harris County, Fort Bend County, & Montgomery County), the Rio Grande Valley (McAllen, Pharr, Hidalgo County, & Cameron County), San Antonio (Bexar County), Waco (McLennan County) and the rest of Texas with Property Tax Loans.

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.

OCCC License #159698 • NMLS #1778315, 2421751