Behind on Property Taxes in Dallas-Fort Worth? You Can Still Sell

For most original tax bills, property taxes unpaid after January 31 become delinquent on February 1. A six percent penalty plus one percent interest generally applies then; penalty and interest can increase over time. If an original bill was mailed late, its printed delinquency date may be later, so check your actual bill and local tax office.

By July 1, the penalty generally reaches twelve percent and interest continues at one percent per month. A taxing unit that uses a private collection attorney may add a collection penalty of up to twenty percent when applicable. Confirm the exact payoff with the collector because the timing and charges depend on the account.

Tax debt can escalate quickly, but a payment plan, a waiver request in limited circumstances, or a deferral for eligible homeowners may be available. Ask the local tax office before assuming a sale is your only option.

Dallas and Fort Worth are the two largest cities we serve. If your property is in one of them, see how we buy houses in Dallas or how we work as cash home buyers in Fort Worth.

People often assume they are safe because they are current on their mortgage, or because they own the house outright with no mortgage at all. Neither protects you. Texas taxing units can sue to foreclose their tax lien independently, and a house owned free and clear is fully exposed to it.

A tax lien in Texas is also superior to most other liens on the property, which means it comes ahead of a mortgage in priority. If the case proceeds to a sheriff's sale, the property can be sold for an amount that satisfies the taxes and costs — frequently a small fraction of what the house is actually worth. Any equity above that is not automatically protected simply because it existed.

Owners in this position are usually not careless. They inherited a house with taxes already behind, lost the homestead exemption when a parent died and the bill jumped, had a lender stop escrowing, or hit a stretch where the tax bill lost to the medical bill. The reason rarely changes what the calendar does.

This is the single most common misunderstanding we encounter, and it keeps people from acting until it is nearly too late. You do not need to clear the delinquency to sell. Delinquent taxes are a lien researched by the title company during the title search and paid directly from the sale proceeds at closing, exactly like a mortgage payoff.

The practical effect is that the equity in the house absorbs the debt. The title company requests an official payoff statement from each taxing unit, the amount is disbursed at closing, the liens are released, and you receive whatever remains. You never write a check.

That outcome is enormously better than a tax sale, where the property can go for far less than market value and the equity you spent years building can largely evaporate. Even a modest amount of equity usually makes selling the better result — and if there is no equity, we will tell you that plainly rather than waste your time.

Before you decide to sell, there is an option many Texans never hear about. Under Section 33.06 of the Texas Tax Code, a homeowner who is 65 or older or who qualifies as disabled can file for a tax deferral on their homestead. Filing generally stops collection activity and pending tax foreclosure on that homestead for as long as the person lives there and qualifies.

It is a postponement, not forgiveness. Deferred taxes generally accrue five percent annual interest, and the accumulated balance can become due when the property is sold or transferred. Ask the appraisal district about the current rules, any deadlines, and how the deferral could affect your heirs before relying on it.

Contact the appraisal district for the county your property sits in — Dallas CAD, Tarrant Appraisal District, Collin CAD, or Denton CAD — and ask about the over-65 or disabled tax deferral affidavit. We would rather you understand every option than sell under pressure. If selling still turns out to be the right move afterward, our offer will still be here.

Want more detail before you decide? Our Read our Texas delinquent property tax guide covers the legal and financial background, with sources, at no cost.