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What Are the Penalties for Non-Payment of Property Taxes?

property tax loan companies Texas

Penalties for outstanding property tax bills in Texas are severe and, therefore, it’s important to pay delinquent property taxes as soon as possible (even if you have to use a loan or property tax solution) to avoid these costs building up. 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, if your tax bill is unpaid, you can expect the following penalties: Back taxes for the previous tax year

  • 1% interest for each month the taxes are delinquent 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 unpaid taxes, that continues to grow, ending only once paid

If your tax bill is based on an expiration of tax deferral or abatement for a homeowner over 65:

  • All pre-abatement/deferral unpaid taxes, penalties, and interest before the deferral or abatement will be included on the bill
  • 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 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 to repay your outstanding bill. This is because a tax lien is applied to every property on January 1st of each year and is only lifted on payment of your property tax bill. This lien allows your local tax office to begin foreclosure proceedings on your property in order to recover the money owed.

It is therefore essential to pay your delinquent property taxes as soon as possible in order to not only avoid as many penalties as you can, but also to keep your home. That’s where AFIC and our affordable property tax solutions can help you.

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.

To find out more about our property tax solutions or to get financial assistance to pay your property tax loans from AFIC, please contact us today or fill in the form below for an instant, free quote.


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YOUR TAX OFFICE MAY OFFER DELINQUENT TAX INSTALLMENT PLANS THAT MAY BE LESS COSTLY TO YOU. YOU CAN REQUEST INFORMATION ABOUT THE AVAILABILITY OF THESE PLANS FROM THE TAX OFFICE.

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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