Can You Avoid Paying Property Taxes? Here’s What Happens
What would happen if you stopped paying your property taxes altogether or if there were a way to avoid them entirely? Property taxes play a vital role in funding community infrastructure, especially in Texas where no state income tax exists. So, if you’re wondering if you can avoid paying property taxes in 2025, here’s what happens.
The Reality: Can You Legally Avoid Property Taxes?
If you are a residential homeowner, property taxes are a legal obligation tied to property ownership in every state, including Texas, and there is no legal way to avoid paying them without serious financial and personal consequences. You can, however, lower your property tax bill with assistance like homestead exemptions, tax reductions for low-income homeowners, and senior citizen and veteran’s programs. These exemptions will lower your taxes, but not remove them entirely. Learn more about the type of property tax exemptions in Texas here.
So, What Happens if I Just Stop Paying Them All Together?
Property tax bills in Texas are due on January 31st and become delinquent on February 1st. Unpaid bills produce a variety of consequences that vary in severity depending on how long the bill goes unpaid.
Immediate Consequences
On February 1st, you are immediately penalized with a 7% penalty and for each month these go unpaid a 2% increase is added. If you haven’t paid them off by July, you face the year’s biggest penalty with a whopping 20% increase in penalty costs. The longer your bills go unpaid, the more penalties that add up.
Tax Liens
Once your property taxes become delinquent, your county will place a tax lien on your property. While this no longer affects your credit score in Texas, it does prevent you from selling or refinancing your property until you pay your property tax bill.
Tax Foreclosure
Once the county places a tax lien on your property, your house becomes eligible for property tax foreclosure. This means the county can sell your house to claim the property tax expenses, and you lose your place of residence. There is no definitive timeline for foreclosure proceedings for unpaid property taxes in Texas, and it depends entirely on the county in which you live. Some counties will foreclose after a year, others can take several years. With no accurate way to predict when a county will start foreclosure proceedings, you’ll want to pay your property tax bill as swiftly as possible.
Haven’t Paid Your Property Taxes Yet? Here’s How to Handle Your Bill
If you haven’t paid your property taxes, are already delinquent, or won’t be able to pay by the January 31st deadline, you have options to prevent serious consequences.
Set Up a Payment Plan
Most counties offer payment plan options for homeowners that can’t pay their tax bills all at once. The type of payment plan varies per county, and you’ll have to make your arrangement directly through your local assessor’s office.
Apply For a Deferral
If you are over 65 in the state of Texas, are disabled, or are a veteran, you may qualify for tax deferment. This would allow you to not pay them until your death without the fear of foreclosure. The tax bill passes to those who inherit your property, if it remains unpaid. Learn more about deferment in the state of Texas.
Consider a Property Tax Loan
If you are already delinquent and are fearful of foreclosure with the upcoming property tax deadline a property tax loan, like the ones at Johnson and Starr, could be your solution. Property tax loans are different than traditional loans and don’t utilize your credit score for approval. Payments are flexible and the loan company pays off your taxes directly to end any further consequences to your home and finances.
Johnson & Starr Can Help
If you cannot pay your property taxes, now is the time to act. Avoid additional penalties and stress by finding out how Johnson & Starr can assist you by paying your delinquent taxes once and for all. Give us a call at 1-800-203-9157 or book your 15-minute loan consultation here.