Property owners in Texas are required to pay their property tax bill by January 31st of every year. Failure to do so will force the taxing jurisdictions to impose penalties, interest, & fees. In this article, we will describe how the penalties work and how property owners can prevent themselves from becoming delinquent on their property taxes.

What are Delinquent Property Taxes in Texas?

Property taxes are considered delinquent if they are not paid in full by the January 31st deadline.

Penalties, interest, and fees are together known as delinquent property taxes. Penalties and interest start at 7% of the unpaid tax bill amount and will go up 2% every month until July. On July 1st, unpaid property tax bills will receive an additional 20% collection fee on top of the penalties and interest. The county can then start turning over delinquent property tax accounts to their collection attorneys who will start filling property tax suits.  If property owners don’t receive their tax bills or notices, property taxes are still due.

Consequences of Property Tax Delinquency

  • Initially, your taxing unit will add 7% for the first month (6% penalty + 1% interest) and an extra 2% (1% penalty +1% interest) for every month of delinquency.
  • For instance, if a property owner remains delinquent on April 1st their unpaid property tax bill will be assessed 2% additional for a total of 11% (8% penalty + 3% interest) since February.
  • If taxes remain unpaid on July 1st, the county can charge a total of 18% (12% penalty + 6% interest) plus a 20% collection fee
  • After July the penalties stop accruing but the interest will continue to grow 1% each month until the bill is paid in full.
  • Most taxing units allow residential homestead property owners to pay delinquent property taxes in installments up to 36 months. We do advise owners to go through the installment agreement thoroughly before signing it.
  • If the property owner refuses to pay their property tax bill, the taxing unit can turn the account over to their collection attorneys who will file a lawsuit on the property. If this happens, the delinquent tax bill grows even further from court costs & lawsuit fees.
  • Lastly, a tax lien is placed on the property on Jan 1st of every year. This helps the county secure payment on the property taxes. The tax lien on any property enables courts to seize the property and take full control over it if the taxes remain unpaid.

How to Avoid Property Tax Delinquency?

Selling or losing your home can be painful experience for every one of us. So, owners need to be aware of situations like property tax delinquency. One way to avoid a delinquency is to contact a Texas Property Tax Lender.

At Ovation Lending have guided every type of property owner in every type of situation to the financial recovery that they needed. We pay the taxes, penalties, interest, and court fees in full and set up a payment plan that best fits the needs of that property owner. Owners can contact us to choose their customized payment plan to repay their property tax loan on a schedule that they can afford. Residential, commercial, and small business owners located in Texas can take advantage of our loans to overcome financial hardships.

Benefits of Ovation Lending Include:

  • We accept all credit types
  • Delayed payment options
  • Terms up to 10 years
  • Quick and secure approval process

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