How To Pay Property Tax in Texas?
Property taxes in Texas are among the highest in the nation, making it essential for homeowners to plan ahead, especially with the January 31st deadline marking the end of the grace period after the holiday season. Your annual property tax amount is based on the appraised value of your home, and if left unpaid, penalties and interest begin accruing on February 1st (or the next business day if that date falls on a weekend). In this guide from American Finance & Investment Company, Inc. (AFIC), your Texas property tax loan specialists, we’ll walk you through when and how to pay, and what to do if you’re at risk of falling behind.
Understanding the Texas Property Tax Process
Before diving into due dates and payment methods, it’s helpful to understand how the Texas property tax system works and why you receive the bills you do.
While governed by the state’s Property Tax Code, property taxes in Texas are assessed and collected at the local level. Each county appraisal district (CAD) assesses the value of properties as of January 1st each year. This appraised value helps determine how much you’ll owe in property taxes. Under state law, all property is taxable unless specifically exempt.
After values are certified, local taxing units—including counties, cities, school districts, and special districts—set their own tax rates and mail bills to property owners. Since Texas property taxes are local, there is no statewide property tax.
To better manage your payments and avoid penalties, it’s important to understand how the Texas property tax system operates, from how your home’s value is assessed to how your bill is calculated and delivered.
How Is My Property Tax Determined?
Once the appraisal district values your property, that appraisal becomes the foundation for your annual property tax bill. Texas law requires that all taxable property be appraised at 100% of its fair market value as of January 1st each year.
Because county appraisal districts handle a high volume of properties, they use a mass appraisal system rather than individual property inspections. This approach groups similar properties together and uses standardized models and market data to estimate value.
Appraisal Methods
Depending on the property type, the appraisal district may use one of the following methods:
- Income Approach – Based on the income a property generates; typically used for commercial properties.
- Sales Comparison Approach – Evaluates recent sales of comparable properties, often applied to condos and townhomes.
- Cost Approach (Modified) – Calculates replacement cost minus depreciation and is commonly used for single-family homes.
After your property is appraised, you’ll receive a Notice of Appraised Value, typically in April. If you believe the value is too high or inaccurate, you can protest the appraisal through the Central Appraisal District and ultimately via an Appraisal Review Board (ARB).
Once values are certified, local taxing entities (such as counties, school districts, or special districts) use that value to set tax rates and issue your annual property tax bill.
When to Expect and Pay Your Property Tax Bill in Texas
Property tax bills in Texas are usually mailed in October, giving property owners ample time to prepare for the January 31st deadline. Taxing units must give at least 21 days from the mailing date to pay. While delays are rare, if your bill is mailed after January 10, your delinquency date may be extended. Many homeowners choose to pay by year-end for federal income tax benefits.
Even if you do not receive your tax bill, you are still legally responsible for paying it on time. Under Texas law, property owners must ensure their taxes are paid by the deadline regardless of mail delivery issues or billing errors. If you haven’t received your bill by early December, contact your local county tax office or check their website to view and pay your balance online.
How to Pay Your Property Taxes in Texas
Property tax payment options can vary slightly by county, so it’s best to check directly with your local tax collection office for specific instructions. Most counties offer multiple ways to pay, including:
- Online payments via eCheck, debit card, or major credit card
- In-person or mail-in payments at your county tax office
In addition, Texas law allows eligible taxpayers to take advantage of several relief options:
- Tax deferrals for homeowners over 65 or those with disabilities
- Installment plans that break up payments over time
- Early payment discounts in some counties, such as Bexar, Dallas, and El Paso.
You may also qualify for partial or total exemptions that reduce your property’s taxable value. Common exemptions include:
- Residence homestead or inherited residence exemptions
- Over 65 or disabled person exemptions
- Veteran exemptions
- Nonprofit and charitable organization exemptions
To make the most of these options, contact your local tax office early. They can help you understand which programs you qualify for and how to apply. If you’re unable to get the support you need or are already behind on your taxes, AFIC may be able to help. As a licensed Texas property tax lender, we offer flexible solutions to help property owners resolve delinquencies and avoid costly penalties.
Note: If you qualify for a tax deferral (such as being over 65 or disabled), you typically won’t qualify for a property tax loan.
What Happens If You Don’t Pay Property Taxes?
Texas has the 7th-highest property tax rate in the country. Since the state has no income tax, these local property taxes are essential to fund critical public services, including schools, libraries, roads, and emergency services.
Due to their role in funding local services, Texas law mandates timely, full payment of property taxes. If you fail to pay by January 31st, penalties and interest begin to accrue on February 1st:
- February 1: A 6% penalty and 1% interest are applied immediately
- March–June: An additional 1% penalty and 1% interest are added each month
- By June 30: Penalties and interest total 15% of your original bill
In addition, most counties, including Denton, Ellis, Fort Bend, and Galveston, will add a 20% attorney fee, applicable to the entire balance owed, on July 1st if the taxes remain unpaid, dramatically increasing the total owed.
Tax Liens and Foreclosure Risk
On January 1st of each year, a statutory tax lien is automatically placed on all taxable properties. This lien gives the taxing authority a legal claim to the property until taxes are paid in full, similar to a mortgage lender’s lien. If the taxes remain delinquent, the authority can initiate foreclosure and sell the property at auction to recover the debt.
In the Case of a Deceased Owner
If the property owner passes away, any unpaid taxes do not disappear. Responsibility for the tax debt may fall on the estate, heirs, or other interested parties, depending on the circumstances. These parties should act quickly to avoid additional penalties or legal action.
Penalties Can Add Up Quickly
There is no maximum limit to how high penalties and interest can grow. Within the first year alone, combined penalties, interest, and legal fees can reach approximately 48% of the original tax bill. If left unresolved, this can result in foreclosure and the loss of your property and hard-earned equity.
Options If You’ve Fallen Behind on Property Taxes in Texas
If you’ve missed the January 31st deadline and are facing mounting penalties, it’s not too late to act, but quick decisions can make a big difference. Here are some options to consider:
1. Contact Your County Tax Office
Some counties offer short-term payment plans. These often require a down payment and strict monthly installments. If you default, retroactive penalties may apply.
2. Check for Deferral Eligibility
If you’re over 65, disabled, or a surviving spouse of a disabled veteran, you may qualify for a deferral. While this won’t eliminate the tax, it postpones collection and stops most penalties from accruing.
3. Explore a Property Tax Loan
For those who don’t qualify for a deferral and can’t manage a lump-sum payment, a property tax loan through a licensed lender like AFIC may be the most affordable and manageable option. This allows you to pay off your tax debt while avoiding foreclosure, with a structured repayment plan that fits your financial situation.
Know Your Rights as a Texas Property Owner
The Texas Constitution outlines several core protections for property owners when it comes to taxation:
- Property taxes must be equal and uniform.
- Property must be taxed based on its current market value.
- Each property must have a single appraised value.
- All property is taxable unless exempt by law.
- You must receive reasonable notice of increases in appraised value.
These rights ensure transparency and fairness in the way your property is valued and taxed across Texas counties.
Why Choose a Property Tax Loan from AFIC?
If you’re struggling with delinquent property taxes, the right financing partner can make all the difference. At AFIC, we combine speed, transparency, and deep knowledge of Texas tax law to help you regain control, without added stress.
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.
