The delinquency schedule

Bills go out in October and payment is due by January 31. On February 1 the account is delinquent, and the statutory penalty and interest begin, increasing month by month. Later in the year the taxing units can add collection attorney fees, which raises the total substantially.

A tax lien attaches to the property on January 1 each year, before any bill exists, which is why a title company always checks the current year as well as prior ones. Delinquent amounts follow the property, not just the owner.

What happens if you wait

Unpaid Texas taxes lead to a suit by the taxing units and then a tax sale. After a tax sale, a residence homestead or agricultural property has two years to redeem, and other property has 180 days, on payment of the purchase price plus a statutory premium. Redemption is expensive, and it is a far worse outcome than a sale.

Selling before the sale date pays the taxes in full from the proceeds and puts any remaining equity in your pocket. If a suit has been filed or a sale scheduled, send us the county and the date and we will tell you honestly whether a closing can beat it.

If you have a deferral

Owners who are 65 or older, or disabled, can defer payment of taxes on a homestead. Interest accrues, but a deferral stops a tax suit while it is in place. Many owners forget how much has accumulated.

Deferred taxes and the accrued interest come due when the property is sold. Get the current payoff figure from the county tax office before you evaluate any offer — it is often larger than expected and it changes the arithmetic.

Nothing needs paying up front

  • The title company gets a tax certificate covering every taxing unit — county, city, school district, community college, and any MUD or special district
  • The full amount owed is paid from the closing proceeds, not out of pocket
  • Prorated current-year taxes are handled separately on the settlement statement
  • A deferral payoff, if one exists, is included
  • You do not need to negotiate with the tax office or the collection attorney first

Frequently asked questions

Do I have to pay off back taxes before selling in Texas?

No. The title company gets a tax certificate and the full amount is paid from your closing proceeds.

When do Texas property taxes become delinquent?

Payment is due January 31, and the account goes delinquent February 1 with penalties and interest beginning.

A tax suit has been filed against my property. Can I still sell?

Often yes, if a closing can be completed before a sale. Send us the county and any scheduled date.

What happens to my over-65 tax deferral?

Deferred taxes and accrued interest come due on the sale. Ask the county tax office for the payoff figure before accepting an offer.

Can I redeem after a Texas tax sale?

A residence homestead or agricultural property has two years; other property has 180 days. Both require paying the price plus a statutory premium, so selling beforehand is usually far better.

Sources

This page is general information about selling property in Texas, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Texas professional about yours.