What Are the Penalties for Non-Payment of Property Taxes?
Penalties for outstanding property tax bills in Texas can be severe, so it’s important to pay delinquent property taxes as soon as possible—(even if it means using a loan or property tax solution) If you’re uncertain about the exact financial impact reviewing the true cost of not paying your property taxes can help you understand the escalating fees and potential legal consequences. Below is a breakdown of penalties for delinquent property taxes as they are applied by local government. This info is published by one of the leading property tax loan companies in Texas, American Finance & Investment Company, Inc. (AFIC).
Breakdown of Property Tax Penalties in Texas
Your local tax authority will apply penalties according to the type of tax bill you receive. So, failure to pay, can lead to the following penalties: Back taxes for the previous tax year
- 1% interest for each month the taxes are taxes remain unpaid ending only once paid
- 6% penalty of the original tax bill for the first month applied on February 1st (around 3 months after the bill is mailed)
- A total of 12% penalty incurred from 6% in Feb, plus 1% for every month thereafter until finally a 2% penalty in July
- Up to 20% penalty in attorney fees if delinquent on July 1st
- A total of 44% of penalties and interest for one year of delinquent taxes, that continues to grow, ending only once you pay the taxes.
If your tax bill is based on an expiration of tax deferral or abatement for a homeowner over 65:
- All pre-abatement/deferral unpaid tax debt, penalties, and interest before the deferral or abatement will be included on the bill
- 6% penalty of the original bill for the first month applied on February 1st (around 3 months after the bill is mailed)
- A total of 12% penalty incurred from 6% in Feb, plus 1% for every month thereafter until finally a 2% penalty in July
- Up to 20% penalty in attorney fees if delinquent on July 1st
- A total of 44% of penalties and interest for one year of unpaid taxes, that continues to grow, ending only once paid
The worst penalty, of course, is that you will eventually lose your home or commercial property. This is because a property tax lien is applied to every property on January 1st of each year,This is only lifted on payment of your property tax bill. This lien allows your local tax office to begin tax lien foreclosure proceedings on your property in order to redeem the money owed. If left unresolved, this lien can escalate into legal action, and understanding what to do during a property tax collection lawsuit in Texas can help homeowners navigate the process and protect their property.
To protect your property and avoid the serious consequences of unpaid taxes, it’s crucial to understand how to avoid property tax foreclosure in Texas. By exploring options like property tax loans, exemptions, or deferrals, homeowners can take proactive steps to address delinquencies before foreclosure proceedings begin. These strategies can help reduce the financial strain of penalties and ensure your property remains secure.
It is, therefore, essential to pay your delinquent property taxes as soon as possible to avoid as many penalties as possible and a tax lien sale. That’s where AFIC and our affordable property tax solutions can help homeowners with delinquent taxes.
Affordable Property Tax Solutions from Leading Property Tax Loan Companies in Texas
For over 70 years, American Finance & Investment Company, Inc. (AFIC) has built a reputation for being one of the leading lenders and now property tax loan companies in Texas. As a family-owned business with an A+ rating at the Better Business Bureau, we’re here to support commercial property owners and homeowners across the state with ethical, honest, and cost-effective property tax solutions. We offer property tax loan solutions that include no payments for 60 months, interest-only payment solutions, and comprehensive escrow protection – all to help you get back on your feet and ensure your taxes are paid.
Get Support From AFIC
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
