Property tax foreclosure in Texas

The property tax process in Texas, step by step

1. Taxes become delinquent and costs start to grow

   February 1 of the year after the tax year

   Unpaid taxes get a 6 percent penalty in the first month plus 1 percent each month after, reaching 12 percent on July 1. Interest of 1 percent a month is added on top for as long as the taxes stay unpaid.

   Tex. Tax Code §§ 31.02(a), 33.01(a), (c)

2. Delinquency notices and the collection penalty

   At least once a year; 30 to 60 days before July 1 for the collection penalty

   The tax collector must send you a notice of delinquency at least once a year, and it must tell a homestead owner to ask about an installment agreement. If the taxing unit uses a collection attorney, an extra penalty can be added to taxes still unpaid on July 1, and you must get notice of it 30 to 60 days before July 1.

   Tex. Tax Code §§ 33.04, 33.07

3. Ask for a homestead installment plan

   While the taxes are delinquent

   If the home has a homestead exemption, the collector must agree to a written monthly plan of 12 to 36 months if you ask and have not had one in the last 24 months. The penalty stops growing while you keep up with the plan, and the taxing unit cannot sue or sell while you follow it.

   Tex. Tax Code § 33.02

4. Deferral if you are 65 or older, disabled, or a disabled veteran

   Any time before suit, during suit, or at least 5 days before a sale

   File an affidavit with the appraisal district (or with the court if a suit is pending) to put off collection, stop a lawsuit, or stop a sale for as long as you own and live in the home. The lien stays and interest runs at 5 percent a year, with no new penalties. A separate deferral covers taxes on a homestead's value increase of more than 5 percent a year.

   Tex. Tax Code §§ 33.045, 33.06, 33.065

5. Tax lawsuit, judgment and sheriff's or constable's sale

   Any time after the taxes become delinquent

   The taxing unit can sue in the county where the home is to foreclose its lien. Court costs and attorney's fees of 15 percent of the taxes, penalties and interest can be added. After judgment, the officer must send you written notice of the sale, which is a public auction (online if the county allows). If no one bids enough, the property can be struck off to the taxing unit.

   Tex. Tax Code §§ 33.41, 33.48, 34.01

6. Two-year right to buy back a homestead

   2 years after the buyer's deed is recorded (180 days for a non-homestead)

   To redeem, pay the buyer what they bid, the deed recording fee, and the taxes and costs they paid, plus a 25 percent premium in the first year or 50 percent in the second year. If the taxing unit took the property and has not resold it, the price is the lesser of the judgment or the market value in the judgment, plus costs. You can also pay through the county assessor-collector with a sworn affidavit.

   Tex. Tax Code § 34.21

7. Claim the excess proceeds after the sale

   Petition before the second anniversary of the sale

   Money left after the judgment and costs goes to the clerk of the court that ordered the sale, who must mail you notice within 30 days if it is more than $25. File a petition in the same court case. Later taxes and other lienholders, such as your mortgage lender, are paid before you, and unclaimed money goes to the taxing units after two years.

   Tex. Tax Code §§ 34.02(d), 34.03, 34.04

Common questions in Texas