Behind on Property Taxes in Texas
Texas property taxes become delinquent February 1st, and the penalties start immediately. Before the balance grows further, know exactly what is accruing, what payment plans exist, and how a sale can pay the balance at closing.
6% + 1%
first-month penalty
A delinquent Texas property tax bill picks up a 6% penalty for the first month, plus 1% for each additional month before July 1.
12%
penalty after July 1
If the tax is still unpaid on July 1, the penalty jumps to a flat 12% of the amount due, on top of accruing interest.
1% / mo
ongoing interest
Interest accrues at 1% for each month or partial month the tax remains unpaid, for as long as the balance is outstanding.
Start here
- 1Get the exact current payoff amount in writing from your county tax office.
- 2Ask about a homestead installment plan if you qualify (over-65, disabled, or disabled veteran).
- 3Check whether your homestead and any other exemptions are still correctly applied.
- 4If selling, confirm the delinquent tax payoff is included in the closing settlement statement.
How the penalty and interest schedule works
Texas property taxes are due by January 31 and become delinquent February 1. Under Tax Code §33.01, a delinquent tax picks up a 6% penalty in the first month, plus an additional 1% for each additional month, until July 1 — at which point the penalty jumps to a flat 12% regardless of how many months have passed. Interest separately accrues at 1% per month or partial month the tax remains unpaid, and these charges continue even after a lawsuit or judgment.
These are county and school-district taxes, not something a mortgage servicer controls unless your loan has an escrow account — if you do not escrow, the taxing units bill you directly, and a missed payment starts this clock without a phone call first.
Payment plans that can stop or slow the bleeding
If you have a homestead exemption and are over 65, disabled, or a qualifying disabled veteran, Tax Code §31.031 lets you split the current year’s homestead taxes into four installments without penalty or interest, as long as the first payment is made before the delinquency date. Separately, once taxes are already delinquent, many Texas tax offices offer an installment agreement under §33.02 to pay off the delinquent balance over time — ask your specific county or school district tax office what it offers, since administration varies locally.
Do not assume a payment plan pauses a pending tax lawsuit or sale on its own — confirm directly with the taxing unit’s attorney or tax office what a plan does and does not protect against once a suit has been filed.
How delinquent taxes get resolved when you sell
A title company will identify delinquent taxes during its title search and require them to be paid at closing from the sale proceeds before it can issue title insurance — this is routine and does not require you to pay the balance out of pocket first. Get a current payoff figure in writing, since penalties and interest keep accruing until the day of closing.
If you also hold an over-65 or disabled-person tax ceiling on this home, ask the appraisal district about transferring that ceiling percentage to a new homestead if you plan to buy again in Texas — it is a percentage of savings that moves with you, not an automatic dollar amount, and it requires a separate application.
Sources and further help
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