Selling a House With Delinquent Property Taxes in Texas
Yes. Back taxes on a Texas house are paid from the sale at closing. Texas property taxes are delinquent on February 1, and the penalties stack fast: 6% plus 1% interest in February, rising to 12% plus interest by July, often with an added collection fee of up to 20%. The taxing units can sue to foreclose at any time, and the house can be sold at a tax sale. If it was your homestead, you generally get two years to redeem, at a 25% premium the first year and 50% the second; other property gets 180 days. Selling before the tax sale is almost always cheaper.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
For Texas owners and heirs behind on property taxes, with notes on Harris, Travis, Williamson and Bell counties. General information, not legal advice. Your county tax assessor-collector and the taxing units' attorneys run the process.
How Fast Texas Penalties Grow
- 1January 31
The last day to pay without penalty.
- 2February 1
A 6% penalty plus 1% interest; both grow each month.
- 3July 1
The penalty reaches 12%, and an additional collection fee of up to 20% is often added.
- 4Tax suit
The taxing units can sue to foreclose at any time after delinquency.
- 5Tax sale
Usually the first Tuesday of the month, run by the sheriff or a constable.
Over 65, Disabled or a Disabled Veteran?
If the house is your homestead and you're 65 or older, disabled, or a disabled veteran, you can file a tax deferral affidavit with the appraisal district. It stops a tax suit and the sale for as long as you own and live there, though interest still accrues at a reduced rate. (Tex. Tax Code § 33.06) Ask before a suit is filed if you can.
Redeeming After a Tax Sale
- Homestead or agricultural landTwo years from the date the buyer's deed is filed.
- Everything else180 days.
- The premium25% in the first year and 50% in the second, on top of what the buyer paid and certain costs.
Texas gives homesteads time after a tax sale, but at a 25% to 50% premium. Paying or selling beforehand is almost always the smarter math.
Want a Number to Compare Against?
Tell me what's owed, and whether the taxing units have already sued. I'll put an as-is offer next to your payoff, and if keeping the house is the better play, I'll say so.
Harris, Travis, Williamson and Bell
Harris County's tax sales are held monthly by its constables and sheriff, and many delinquent accounts are collected by outside law firms hired by the taxing units, which is where the 20% fee comes from. Travis and Williamson counties hold their own regular sales. In Bell County, the Killeen, Temple and Belton areas follow the same state rules. Wherever you are, call the tax assessor-collector for an exact payoff and ask whether a suit has been filed.
Excess Proceeds Are Yours to Claim
If the tax sale brings more than the taxes and costs, the excess is held in the court's registry. The former owner and lienholders can petition for it, generally within two years of the sale. (Tex. Tax Code § 34.04) You don't need to give a stranger a cut.
Keep It or Sell It
Keep It
If you can pay, defer or set up an installment agreement and keep up, do it, and make sure every exemption is on the account.
Sell It
If the taxes, penalties, repairs and insurance are more than you can carry, a sale pays them at closing.
When the house needs work or a tax suit is already filed, an as-is sale can close before the sale date. If you'd rather skip the whole production, sell it as-is to a real estate investor: no open houses, no repair negotiations after inspection, no hauling furniture in the Texas heat, and a closing date you set. Sell to Dennis Buys Houses and the clean-out is our problem, not yours. Take what you want and leave everything else. If we run across anything personal or valuable, we'll make sure it gets back to you.
Selling During Redemption
If the house was your homestead and it's already been sold for taxes, you may be able to sell your right to redeem, or redeem and sell, within the redemption period. These deals are technical; involve a title company early.
An Inherited House With Back Taxes
A deceased owner's over-65 deferral ends, and the deferred taxes come due. Get the right people in place quickly, then deal with the taxes before a suit or sale. (See How to Sell a House in Probate in Texas and Selling an Inherited House in Texas.)
Back Taxes vs. Foreclosure
A Texas tax lien comes ahead of the mortgage, so lenders usually pay delinquent taxes and add them to your escrow. That can trigger a mortgage default and a fast first-Tuesday foreclosure. (See Selling a House in Foreclosure in Texas.)
Common Mistakes
- Waiting until July, when the penalty and collection fee jump.
- Not filing a deferral when you qualify.
- Ignoring the tax suit papers.
- Assuming you'll have two years when it wasn't your homestead.
- Leaving excess proceeds unclaimed.
- Signing a high-interest property tax loan without reading the terms.
Where I Fit, and Where I Don't
Texas owners usually reach me when several years of taxes and penalties have stacked up, a tax suit is filed, the house needs work, or it came through an estate.
There's no need to empty the house for Dennis Buys Houses, either. Leave what you don't want and we'll handle it.
If it's your homestead and a deferral or payment plan would solve it, that usually beats selling, and I'll tell you.
Whatever the situation, I'll be upfront about whether I'm a good fit for it.
Frequently Asked Questions
Yes. The taxes, penalties, interest and fees are paid from the proceeds at closing.
On February 1, if not paid by January 31.
Two years for a homestead or agricultural land, 180 days for other property.
No. Take what matters; with an as-is sale, Dennis Buys Houses handles what's left.
Homeowners 65 and older, disabled owners and disabled veterans can file a tax deferral on their homestead.
The former owner and lienholders can petition for it, generally within two years.
Your county tax assessor-collector has the payoff. Key law: Tex. Tax Code § 34.21 (redemption), Tex. Tax Code § 34.04 (excess proceeds) and Tex. Tax Code § 33.06 (deferral).
Texas Selling Guides
- How to Sell a House in Probate in Texas
- Selling an Inherited House in Texas
- Selling a Vacant House in Texas
- Selling a House With Bad Tenants in Texas
- Selling a House in Foreclosure in Texas
Behind on Texas Property Taxes?
Send me the account balance and whether a suit has been filed. I'll reply with a firm as-is offer, or point you to a deferral or payment plan if that's the smarter fix.