Texas Property Tax Penalty and Interest Chart: How Fast Does It Add Up?
One of the most common questions from Texas property owners with a delinquent tax bill is simple: how much more will I owe if I wait? The answer follows a predictable schedule set by Texas law — but it adds up faster than many people expect. This chart breaks down, month by month, how penalties and interest accumulate on a delinquent property tax account. For expert advice and loan quotes related to property taxes, contact American Finance and Investment Co., Inc. (AFIC).
The Standard Penalty and Interest Schedule
Under Texas Tax Code §33.01, delinquent property taxes accrue penalty and interest as follows:
- February 1: 6% penalty + 1% interest = 7% total
- March 1: 7% penalty + 2% interest = 9% total
- April 1: 8% penalty + 3% interest = 11% total
- May 1: 9% penalty + 4% interest = 13% total
- June 1: 10% penalty + 5% interest = 15% total
- July 1: 12% penalty + 6% interest, plus an additional collection penalty (commonly up to 20%) for accounts referred to a delinquent tax attorney = total can reach roughly 38–48%
- After July 1: The penalty portion caps at 12%, but interest continues to accrue at 1% per month until the account is paid
Why July 1st Is the Big Jump
The increase from June to July looks small on paper (15% to 18% before the collection penalty) — but it’s the date when many taxing units add the collection penalty for attorney/collection fees, which is what causes the total to jump dramatically. For more detail, see our article on the July 1st penalty.
What This Looks Like on a Real Tax Bill
For example, on a $5,000 tax bill:
- Delinquent as of February 1: owe approximately $5,350 (7%)
- Delinquent as of June 1: owe approximately $5,750 (15%)
- Delinquent as of July 1 (with collection penalty): owe approximately $6,900–$7,400 (38–48%)
These figures are illustrative — actual amounts can vary slightly depending on the taxing unit and whether a collection penalty applies.
How to Stop the Clock
Penalties and interest stop accruing once the account is paid in full — whether through:
- A lump-sum payment directly to the tax office
- A payment plan with the county, where available
- A property tax loan, which pays the taxing authority in full immediately and replaces the balance with a structured monthly payment
Manage Your Property Taxes with AFIC
The longer a delinquent balance sits, the more it costs — but the schedule above also shows that acting sooner rather than later makes a real difference. A property tax loan can pay off the balance at any point in this timeline, stopping further penalties and interest immediately.
American Finance & Investment Co., Inc. (AFIC) has helped Texas property owners manage situations like this for over 80 years. See if you qualify for a property tax loan.
Frequently Asked Questions
Starting February 1st, delinquent taxes accrue a penalty starting at 6% plus 1% interest, with the penalty increasing by 1% and interest by 1% each subsequent month through July, when the penalty caps at 12% and an additional collection penalty may apply.
Without a collection penalty, the base penalty and interest reach about 18% by July 1st. With a collection penalty (often up to 20%) added for accounts referred to a collection attorney, the total can reach approximately 38–48%.
Yes. While the penalty portion caps at 12%, interest continues to accrue at 1% per month until the account is paid in full.
The base penalty and interest schedule under Tax Code §33.01 is set by state law and applies broadly, though specific collection penalties and procedures can vary by taxing unit.
Paying the balance in full — through personal funds, a county payment plan, or a property tax loan — stops further penalties and interest from accruing as of the payment date.
