How an unpaid Texas tax bill grows

Property taxes are due when the bill arrives. They become delinquent if not paid before February 1 of the following year. Ask for the current balance if you only have an older statement.

The penalty starts at 6 percent in the first month, plus 1 percent for each added month before July 1. A tax still unpaid on July 1 carries a 12 percent penalty. Interest is 1 percent per month and continues until payment.

When the tax office uses a collection attorney, an extra collection penalty can be added after July 1. Ask the Harris County Tax Assessor-Collector’s office to explain any charges you don’t understand.

Ask about options before a tax suit

If you want to keep the house, ask the collector about a payment plan. Approval is up to the collector. An agreement can last at most 36 months and, for a residence homestead, at least 12 months. While you keep the agreement, the collector may not sue or seize the property.

An owner who is 65 or older, disabled, or qualified for a disabled veteran exemption can defer collection on the home they own and live in. During the deferral, there’s no tax suit or tax sale. The lien stays, interest runs at 5 percent a year, and there are no penalties. You still owe the tax.

The deferral ends 181 days after the collector’s notice once the owner no longer owns and lives in the home. If you’re planning a move or sale, ask the office how that affects your deferral.

This is general information, not legal advice. A Texas attorney can review a suit, a sale notice, or a question about your deferral.

What a tax sale and redemption mean

Redemption means buying the property back after a tax sale. A homestead or agricultural land can be redeemed within two years after the buyer’s deed is recorded. The premium is 25 percent in the first year and 50 percent in the second. Other property has a 180-day redemption period, with a premium capped at 25 percent.

If you also have mortgage notices, the guide to selling while facing foreclosure covers that situation.

Considering a sale before it gets that far

Unpaid taxes are usually paid from the sale at closing. Tell me about any suit or sale notice, repairs, who lives there, and whether you need time to move. That helps me understand the house and your timing.

How an offer becomes a sale

I review nearby comparable sales, the condition, and expected costs before giving you a cash offer. Asking is free and doesn’t commit you to selling. If the offer fits, it goes in writing.

I walk through the house before closing at a title company. You choose when to close; the title company confirms the earliest date once the title work is done. Tell me about any tax notice deadlines.

I may close on the house myself or assign the purchase contract to another investor I work with, on the same price and terms. I’ll tell you in writing before you sign anything. Send the address below if you want to discuss the house.

Sources

Texas Tax Code sections 31.02(a), 33.01(a), (c), 33.02(a), (a-1), (d), 33.06, 33.07(a), and 34.21(a), (e).