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FAQ: Paying Delinquent Property Taxes in Texas

If you are a Texas property owner and have recently become delinquent on your property taxes, you may be feeling overwhelmed. However, avoiding property taxes will only add to your stress. That’s why it’s important to be proactive and find a solution that works for you. Here are some common FAQs and 3 options for paying your delinquent property taxes in Texas.

Why Do I Need to Pay My Delinquent Property Tax Bill Quickly?

In Texas, once you are considered delinquent on your property taxes, you will be subject to high-interest rates, penalties, and fees that are tacked onto your property tax bill. These fees include a 7% penalty from the start. From there, interest and penalty rates continue to accrue monthly at 2% per month, with one of the largest hits of 15 – 20% coming in July for most counties. After July, interest continues to increase with an additional 1% penalty that gets added each month. The longer you allow your delinquent taxes to go unpaid, the more penalties and interest are added to your bill.

If you’re looking for a more precise breakdown of the penalties and interest fees, check out this “Texas Property Tax Penalty and Interest Chart” that provides a monthly breakdown.

What Are the Different Options for Paying Off My Delinquent Property Taxes? 

There are several different payment options for paying your delinquent Texas property taxes, although it’s important to note that some payment options are specific to your local tax collection office. Here are 3 payment options that you may want to consider:

1. Setting up a Payment Plan with the County:

When a person is considered a delinquent taxpayer, the Texas Property Tax Code requires that property tax collectors offer the option of installment agreements, allowing taxpayers a certain amount of time and installments to pay off their accruing taxes from that year. These installments can vary depending on the county that you live in, although each county must operate within the guidelines of the Texas Property Tax Code.

However, these installment payments need to be paid at their specific deadlines or the risk of penalties is great. Aside from the high payments, if not paid on time, you are still at risk of being sued by the county or losing your home. Learn more in our blog, “Advantages and Disadvantages of County Property Tax Payment Plans.”

2. Paying with a Credit Card:

Although many credit companies offer enticing low interest promotional deals, keep in mind those low or no interest deals are only good for a set amount of time and often come with a hefty processing fee. If you’re planning to pay off the bill in a month or two, this may be a workable option but if you don’t have the cash to pay it off for months the interest could add up quickly.

3. Property Tax Loans in Texas:

If you’re looking for an option to extend your payments at an affordable amount, a property tax loan could be a great fit for you. Property tax loans offer the convenience of a lower interest rate and repayment on a schedule that meets your needs—not the county’s.

At Johnson & Starr we take pride in being a trusted property tax lender that can save your home or business. We will work out a loan that specifically fits your needs and your unique situation. Instead of paying the sometimes overwhelming and strict payment options through your county, our property tax loans are flexible enough to adapt to nearly any loan requirement. To find out how we can help save your home or business – give us a call today at 800-203-9157.