Why Do Delinquent Property Taxes in Texas Spike in July?
The longer delinquent Texas property taxes go unpaid, the harder they become to manage. Each month of delinquency brings added penalties, interest, and fees, but July 1st marks a turning point. That’s when an especially steep penalty kicks in, making it significantly more difficult to catch up.
What Happens in July?
Starting July 1st, local tax assessors turn over delinquent property tax accounts to private collection attorneys. This action triggers an additional 15%–20% in legal fees, court costs, and attorney expenses, depending on your county. At that point, your overdue bill could total up to 41.6% more due to cumulative interest, penalties, and collection fees.
Once attorneys are involved, your delinquent taxes are no longer just a billing concern;, they become a legal matter. These firms are authorized to issue demand letters, file lawsuits, and even initiate foreclosure proceedings to recover the debt.
This process exists because property taxes fund vital public services like schools, emergency response, and infrastructure. Ensuring timely payments helps protect those services, and strict enforcement policies are designed to limit revenue loss for counties and local governments.
Why this Matters
From February 1st through June 30th, you’re already accruing a 12% penalty on your delinquent property taxes, plus an additional 1% each month with no cap. Then, on July 1st, a massive 20% collection fee can be added on top. That means you could nearly double what you owe in just a few months.
Why let it get to that point? There’s no reason to let unpaid property taxes snowball into a serious financial burden. These penalties can strain your monthly budget, lead to collection actions, or even put you at risk of losing your property in extreme cases.
For more information on the specific penalties, learn more from Texas Comptroller.
How to Stay Ahead of the July Penalty
It’s important to stay proactive in these situations. Don’t let the July 1st deadline sneak up on you. Set a calendar reminder in advance to stay aware of the significant penalties that kick in after this date. Doing so gives you time to explore options, whether that means arranging payment with your county tax office, seeking a payment plan, or consulting with a property tax professional. Addressing the issue before legal fees are added can save you hundreds, or even thousands of dollars, and help you avoid the risk of further legal action, including foreclosure.
Johnson & Starr is Here to Help
If you are currently behind on your property taxes and are facing penalties, it is important to take immediate action. Depending on your situation, there are several ways to seek assistance. Given the high risk and urgency, a property tax loan might be your best option. At Johnson & Starr, we offer easy-to-understand loans designed to alleviate the stress of overdue property tax bills. We pay off your bill in full and create a personalized repayment plan that meets your needs. Don’t wait until you are hit with the July 1st penalty to get help. Learn more about our Texas Property Tax Loans today, give us a call at 888-508-3894.