What Happens If I Don’t Pay My Property Taxes in Texas?

Falling behind on property taxes can happen faster than you expect. In Texas, unpaid property taxes don’t just sit quietly on your account. They quickly accrue penalties, become a legal claim on your property, and can eventually lead to foreclosure if ignored for too long.

Whether you’ve missed a payment or are trying to help a family member avoid losing their home, it’s important to understand what happens and what options are available to fix it.

Late Penalties and Interest Add Up Quickly

Property taxes in Texas are due by January 31 each year. If you haven’t paid by February 1, your bill becomes delinquent, and the penalties start stacking up.

Here’s what you can expect:

• 6% penalty and 1% interest added in February

• Additional 1% interest each month after

• By July, counties often tack on a 20% collection fee

What started as a manageable bill can balloon into a major financial burden within just a few months. 

A Tax Lien Is Automatically Placed on Your Property

When your taxes go unpaid, the local taxing authority places a lien on your property. A lien is a legal claim that ensures taxes get paid before you can sell or refinance.

This lien:

• Gives the government legal authority to enforce payment

• Is public record (which can affect credit and title searches)

• Stays in place until the full amount is paid, including penalties and fees

In short, you can't sell or transfer clear title to the property while a tax lien exists.

You Could Lose Your Property Through Tax Foreclosure

If your taxes remain unpaid long enough, the taxing authority can initiate a tax foreclosure, which is a legal process that allows them to sell your property at auction to recover the debt.

This process includes:

• A lawsuit filed in district court

• A court judgment against you

• A public auction of your property to the highest bidder

You’ll receive notice before any foreclosure takes place, but if you ignore that notice, you could lose your home, even if you owe only a few thousand dollars in taxes.

Paying the Taxes After Foreclosure Isn’t Always Enough

In Texas, the original owner may have a “right of redemption” period after foreclosure, meaning you can reclaim the property by paying what’s owed (plus fees and interest) within a limited time.

But the window is short:

• Two years for homestead or agricultural property

• Six months for most other properties

And even then, reclaiming property can be costly and complicated, especially if someone else has already purchased it and made improvements.

Your Mortgage Lender May Step In (And Not in a Good Way)

If your property is mortgaged, your lender has a vested interest in making sure property taxes are paid. If they learn that you’re delinquent, they may:

• Pay the taxes themselves to protect their lien

• Add the amount to your mortgage balance

• Start foreclosure proceedings under the terms of your loan agreement

This adds another layer of risk and often results in higher monthly payments or immediate repayment demands.

You Still Have Options, But Timing Is Critical

If you're behind on your property taxes, don’t wait! The earlier you act, the more options you have, including:

• Setting up a payment plan with the Tax Assessor Collector’s office

• Seeking a property tax deferral (available for some homeowners age 65+, disabled, or veterans)

• Challenging an incorrect assessment if you believe your property was overvalued

• Filing for bankruptcy, which may pause the collection process in certain cases (consult with an attorney first)

You may also be able to redeem your property after foreclosure, but again, time is of the essence.

When to Call a Real Estate Attorney

Unpaid property taxes threaten your credit AND your ownership. Whether you’re facing a potential foreclosure, disputing a tax lien, or navigating redemption, LDG PLLC can help.

We work with Texas property owners to:

• Evaluate foreclosure risk

• Challenge unlawful liens or assessments

• Negotiate payment plans or dispute penalties

• Guide redemption efforts and protect your rights

Behind on property taxes?

Contact LDG PLLC today to understand your options and protect what matters most: your home, your land, and your future.