Property taxes

Your options

Every lawful path we know of for a Texas homeowner behind on property taxes — when it fits, what it costs, and the law behind it. None is automatic and none promises a result.

• Pay in full

  Stops penalty and interest from growing and ends collection. Ask for a written statement of the exact amount on the day you pay.

  Trade-offs: Before July 1 you avoid the collection penalty. After a suit is filed, court costs are added.

  Fits: A tax statement (bill) · A notice that taxes are delinquent · Court papers: a tax lawsuit (citation) · A judgment in the tax case · A notice of sheriff’s or constable’s sale

  Tex. Tax Code § 33.01(a) · Tex. Tax Code § 33.07(a)

  Your right: Fourteenth Amendment — due process — U.S. Const. amend. XIV, § 1 Due Process Clause
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• Installment agreement with the tax office

  Monthly payments for up to 36 months (at least 12 for a homestead). For a homestead with an exemption, the collector must agree on request unless you had one in the last 24 months.

  Trade-offs: No suit or sale while you keep it, and no new penalty on a homestead — but interest runs, signing admits the debt, and one missed payment lets collection resume after a default notice.

  Fits: A notice that taxes are delinquent · Court papers: a tax lawsuit (citation) · A judgment in the tax case · A notice of sheriff’s or constable’s sale

  Tex. Tax Code § 33.02(a) · Tex. Tax Code § 33.02(c) · Tex. Tax Code § 33.02(d)

  Your right: Homestead protected from forced sale — Tex. Const. art. XVI, § 50(a)
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• Quarter payments (65+, disabled, disabled veteran)

  Pay this year’s homestead taxes in four equal parts with no penalty, if the first part and a note are sent before the delinquency date.

  Trade-offs: Only for the current bill; a missed quarter gets a 6% penalty plus interest.

  Fits: A tax statement (bill) · A notice that taxes are delinquent

  Tex. Tax Code § 31.031(a-1) · Tex. Tax Code § 31.031(b)

  Your right: Homestead protected from forced sale — Tex. Const. art. XVI, § 50(a)
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• Tax deferral (65+, disabled, disabled veteran)

  A sworn affidavit filed with the appraisal district postpones collection while you own and live in the home. It also abates a pending suit (filed in court) or a sale (delivered 5+ days before).

  Trade-offs: The tax is not forgiven: 5% yearly interest builds and the whole amount comes due after you move or pass away (a spouse 55+ may continue it). It can reduce what heirs receive.

  Fits: A tax statement (bill) · A notice that taxes are delinquent · Court papers: a tax lawsuit (citation) · A judgment in the tax case · A notice of sheriff’s or constable’s sale

  Tex. Tax Code § 33.06(a) · Tex. Tax Code § 33.06(c-1) · Tex. Tax Code § 33.06(d)

  Your right: Homestead protected from forced sale — Tex. Const. art. XVI, § 50(a)
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• Claim missing exemptions — including late homestead

  Homestead ($140,000 off school value), 65+/disabled (+$60,000), 100% disabled veteran (whole home). A late homestead application can reach back two years after the delinquency date and lower what you owe.

  Trade-offs: Filed with the appraisal district, which decides; the tax office then adjusts the bill.

  Fits: A tax statement (bill) · A notice that taxes are delinquent · Court papers: a tax lawsuit (citation) · A judgment in the tax case · A notice of sheriff’s or constable’s sale

  Tex. Tax Code § 11.13(b) · Tex. Tax Code § 11.431(a) · Tex. Tax Code § 11.131(b)

  Your right: Homestead protected from forced sale — Tex. Const. art. XVI, § 50(a)
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• Protest next year’s value

  If the value is too high, protest by May 15 (or 30 days after your value notice). It will not fix a delinquent bill but can keep the next one smaller.

  Trade-offs: To appeal to court or arbitration later you must pay the undisputed tax on time.

  Fits: A tax statement (bill) · A notice that taxes are delinquent

  Tex. Tax Code § 41.44(a)(1) · Tex. Tax Code § 42.08(b)

  Your right: Fourteenth Amendment — due process — U.S. Const. amend. XIV, § 1 Due Process Clause
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• If your mortgage has an escrow account

  The servicer must pay escrowed taxes on time as long as your payment is not more than 30 days overdue — and advance money to do it. Ask in writing what was paid and when.

  Trade-offs: If the servicer pays taxes you did not escrow, your deed of trust likely lets it add them to the loan and raise your payment.

  Fits: A tax statement (bill) · A notice that taxes are delinquent · Court papers: a tax lawsuit (citation)

  12 C.F.R. § 1024.34(a) · 12 C.F.R. § 1024.17(k)(2)

  Your right: Regulation X — escrow cushion limit — 12 C.F.R. § 1024.17(c)(1)Your right: RESPA / Regulation X — notice of error — 12 C.F.R. § 1024.35(a)
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• Talk to someone about bankruptcy

  Filing bankruptcy generally pauses a tax sale while the case is open, and Chapter 13 can spread delinquent taxes over a plan. It is a serious step with its own rules.

  Trade-offs: Costs, credit effects and strict duties. See the bankruptcy guide and a lawyer or legal aid before deciding.

  Fits: Court papers: a tax lawsuit (citation) · A judgment in the tax case · A notice of sheriff’s or constable’s sale

  Your right: Bankruptcy Code — automatic stay — 11 U.S.C. § 362(a)Your right: Bankruptcy Code — choosing exemptions — 11 U.S.C. § 522(b)(1)–(3)
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• Sell before the sale

  Selling on your own terms usually brings far more than a tax sale; the taxes are paid at closing from the proceeds.

  Trade-offs: You lose the home. Beware offers to “buy your house for the taxes”.

  Fits: A tax statement (bill) · A notice that taxes are delinquent · Court papers: a tax lawsuit (citation) · A judgment in the tax case · A notice of sheriff’s or constable’s sale

  Your right: Fifth Amendment — Takings Clause — U.S. Const. amend. V Takings Clause

• Free legal aid

  A lawyer can check the suit, the judgment and the sale notice, and file answers or motions. Call as soon as you get court papers.

  Trade-offs: Legal aid has income limits and waiting lists — call early.

  Fits: A tax statement (bill) · A notice that taxes are delinquent · Court papers: a tax lawsuit (citation) · A judgment in the tax case · A notice of sheriff’s or constable’s sale · The property was already sold

  Your right: Fourteenth Amendment — due process — U.S. Const. amend. XIV, § 1 Due Process Clause
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• Buy the home back (redemption)

  After a sale, a homestead can be redeemed for two years from the day the buyer’s deed is recorded: the price plus costs plus 25% in year one or 50% in year two. Other property: 180 days, premium up to 25%.

  Trade-offs: Redemption does not let you stay in the home or collect rent meanwhile, and the right cannot be sold or transferred.

  Fits: The property was already sold

  Tex. Tax Code § 34.21(a) · Tex. Tax Code § 34.21(a) · Tex. Tax Code § 34.21(l)

  Your right: Tax sale redemption — Tex. Tax Code § 34.21(a), (e)
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• Claim the money left over (excess proceeds)

  If the sale brought more than the judgment and costs, the extra is held by the district clerk. Former owners who were defendants (or their heirs) can claim it by petition in the same court before the second anniversary of the sale.

  Trade-offs: Mortgage and other lienholders are paid before owners. You do not need to pay anyone to find it: non-lawyers may not charge a fee, and a lawyer’s fee is capped at 25% or $1,000, whichever is less.

  Fits: The property was already sold

  Tex. Tax Code § 34.04(a) · Tex. Tax Code § 34.04(i) · Tex. Tax Code § 34.04(i)

  Your right: Claims for excess proceeds — Tex. Tax Code § 34.04(a), (c)(5)Your right: Fifth Amendment — Takings Clause — U.S. Const. amend. V Takings Clause
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• Watch for offers that cost you

  Tax-lien loans can charge up to 18% a year and are barred for 65+ homesteads. “Heir hunters” may not buy your excess-proceeds claim before day 36 or by phone or door-to-door, and must pay at least 80% up front.

  Trade-offs: Get any offer in writing and show it to legal aid before signing.

  Fits: A tax statement (bill) · A notice that taxes are delinquent · Court papers: a tax lawsuit (citation) · A judgment in the tax case · A notice of sheriff’s or constable’s sale · The property was already sold

  Tex. Tax Code § 32.06(e) · Tex. Tax Code § 32.06(a-3) · Tex. Tax Code § 34.04(f)(1)

  Your right: Fifth Amendment — Takings Clause — U.S. Const. amend. V Takings Clause
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