Author: Jason White

Texas Property Tax Deadlines For 2021

You can have your property foreclosed for failing to pay property taxes in Texas. Your interest and penalties can also accumulate to approximately 47% in the first year alone. The importance of knowing the deadlines in respect to the type of property owner, taxing units, and appraisal districts can’t, therefore, be overlooked. The Texas Property Tax Code dictates everything on property tax, including deadlines.

For instance, Section 1.06 dictates what happens if a deadline falls on a national holiday or weekend i.e., the deadline is enforced on the first business day following a holiday or weekend. Below are important Texas property tax deadlines applicable to 2021.

Eventualities like extensions haven’t been factored in. If a property owner secures a property tax payment plan or exemption that legally extends or removes a deadline, the deadlines below can change accordingly. Property owners with other complex property tax deadline issues should consider seeking legal advice for a more detailed interpretation of the statutory provision.

Monthly Texas Property Tax Deadlines for 2021

Below are the main deadlines applicable to property tax deadlines in Texas as per the Texas Comptroller.

January 1st and 31st Property Tax Deadlines

Taxable values and qualifications for some exemptions are established on 1st January every year. This is also when a tax lien is attached to property as security for payment of overdue taxes, interest, and other penalties for the year as per Sec 31.01a. Temporary property tax exemptions for property owners who qualify due to disaster damage also expire on 1st January. Disabled individuals and the elderly aged 65 or more have up to 31st January to qualify for property tax exemptions as per Sec 11.22.

February Property Tax Deadlines

Individuals who don’t pay their property tax face delinquency on 1st February. Delinquency attracts a 7% penalty charged on 1st February and increments thereafter.

31st March Property Tax Deadlines

Disabled and elderly property owners (aged 65 years or more), as well as their heirs or surviving spouses who qualify for Sec 11.22 property tax exemption, have up to 31st March to pay their 2nd property tax installment.

31st March is also the deadline for qualified property owners of damaged property to pay their second tax installments with 1st February delinquency dates.

1st April and 30th April Property Tax Deadlines

Businesses have up to 1st April to pay their previous year’s property taxes without accruing any attorney fees. Property owners have until 30th April to file exemption applications as per Sec 11.43d.

31st May Property Tax Deadlines

31st May is the last day for elderly homeowners (aged 65 and above), disabled veterans, and their heirs and/or surviving spouses to pay their third installment on property tax as per Sec 11.22 with 1st February delinquency dates. The same deadline applies to disabled veterans and their heirs/surviving spouses with donated homesteads as per Sec 31.03.

Property owners (both homeowners and business owners) with property damaged by disaster also have up to 31st May to clear their third property tax installment.

30th June Property Tax Deadlines

Taxing units have up to 30th June to levy property tax for a current year as per Sec 26.12. They must also adopt local option % homestead exemptions by 30th June. Private schools denied property tax exemptions under Sec 11.21 due to charter amendments must also file an application before 30th June or before the 60th day from the date an exemption is denied.

1st July and 31st July Property Tax Deadlines

As per the Tax Code Sec 33.01a, delinquent taxes incur 12% in overall penalties on 1st June.

Disabled or elderly homeowners, as well as disabled veterans and their heirs or surviving spouses who qualify for Sec 11.22 exemptions, have up to 31st July to pay their 4th property tax installment as per 1st Feb delinquency dates. The deadline also stands for partially disabled veterans who have homesteads donated by charitable organizations.

Homeowners and business owners with property damaged by disasters also have up to 31st July to pay their 4th installment on property taxes.

1st and 31st August Property Tax Deadlines

Taxing unit assessors have up to 1st August to submit appraisal rolls and dates that tax collectors submit collection rate estimates for a current year.

By 31st August, taxing units must waiver penalties and accrued interest if tax bills are returned undelivered by the US Postal Service (if another tax bill isn’t sent 21 days before delinquency date to a current mailing address given by a property owner).

September Property Tax Deadlines

29st September is the last day for all taxing units to adopt current tax rates. Failure to observe this deadline will force a unit to adopt lower tax rates for that year.

October Property Tax Deadlines

As per Sec 31.01, tax assessors must have mailed property tax bills for a year by 1st October or as soon as it is practical.

November Property Tax Deadlines

Split payments offered to property owners in need of property tax payment plans must pay the first 50% of their taxes on or before 30th November.

December Property Tax Deadlines

Appraisal offices are supposed to survey and verify eligibility for homestead property tax exemption by 31st December.

Summary

The above information summarizes critical Texas property tax deadlines for 2021 to consider. While there are more deadlines applicable to property owners, taxing units, and other tax stakeholders in Texas, the above information summarizes the most notable deadlines to consider.

Understanding this information will help a property owner in Texas know when to pay taxes, apply for exemptions, expect correspondence from tax authorities, and many other important tax matters.

Paying for Texas Property Tax Before Deadlines

Penalties for overdue taxes begin accumulating in February and do so up to December if taxes still remain unpaid. To avoid worrying about different deadlines throughout the year, seek professional assistance on your property tax issues and ensure you pay your taxes on time.

If you don’t have money, you can always turn to property tax loan lenders in Texas. Propertytaxloanpros.com is one of the best property tax loan lenders with seamless online application processes, low fees, ZERO application fees, great reviews, and more. Call 866-531-7678 or email: info@propertytaxloanpros.com.

Texas Property Tax Due Dates

Overview

Texas property owners have many important tax dates to consider throughout any given year. Below are the most important Texas property tax due dates that could mean anything from missing a tax bill to accumulating hefty penalties, interest charges, and even suffering foreclosure.

The Texas Comptroller has a more detailed tax calendar with all property tax deadlines and their respective reference in the Tax Code. Here’s a summary of the tax due dates you should be worried about the most as a Texas property owner.

January Property Tax Due Dates

January has several property tax deadlines. For instance, 1st January is the last day for the appraisal district to determine property value. Tax liens also attach automatically to a person’s property on 1st January to secure payment of tax, penalties and accrued interest.

Property owners should receive their property tax bills for the preceding year by 10th January, or their delinquency date will automatically be moved to a later date (by 21 days).

31st January is the last date for property owners to pay their accrued taxes without facing penalties and interest charges, among other costs.

As per Texas Property Tax Code, penalties and interest on overdue taxes start accruing from 12.01am on 1st February. However, if 31st January happens to fall on a weekend, penalties and interest start accruing on the next working day (from Monday).

If you have a property payment plan because your property has been damaged by a disaster, 31st January is your deadline for paying the 1st installment payment on your tax bill.

February Property Tax Due Dates

Property taxes that aren’t paid on 1st February automatically result in delinquency. Penalties and interest charges also start accruing.

Property owners have up to 28th February or 29th February (in a leap year) to file for the instalment property tax payment option via a letter of intent. The deadline also applies to homestead exemptions. Disabled veterans, and elderly individuals (aged 65 or more) and other qualified individuals must pay their 1st instalment of their tax bill by 28th February.

March Property Tax Due Dates

31st March is the most important tax due date in March as this is the deadline for the 2nd instalment payment for individuals who qualify for homestead exemption. The exemption is given to elderly individuals aged 65 years or more, disabled individuals, disabled veterans and their surviving spouses who need a property tax payment plan.

April Texas Property Tax Due Dates

Property owners have up to 30th April to file several applications with respective appraisal districts. These applications range from certain exemptions to special requests.

May Property Tax Due Dates

Tax units start notifying property owners with delinquent property taxes on 2nd May. Additional penalties begin in June. The 3rd instalment (of tax statement) falls due on 31st May for qualified individuals.

July Property Tax Due Dates

On 1st July, property owners in delinquency face a 20% collection penalty, the largest of all penalties in a year.

September Property Tax Due Dates

Taxing units set property tax rates by 29th September. The rates determine the property tax that will be paid the following year. This follows the 1st September deadline for appraisal districts to set their budgets for the following year.

October Property Tax Due Dates

Tax assessors must start sending out property tax bills due the following year by October 1st.

December Property Tax Due Dates

By the end of December, appraisal offices must have verified eligibility for certain property tax exemptions i.e., homestead exemption.

Important: Texas property tax due dates may vary from one county to another. The importance of seeking location-specific information can’t be overlooked. Property owners should also check for detailed, up-to-date property tax due dates information with the Texas Comptroller.

FAQs About Texas Property Tax Due Dates

What will happen if I miss a property tax due date?

Missing property tax deadlines can attract serious problems in Texas. Besides penalties, interest and other charges (collection fees) accumulating to over 45% within the first year, you can also lose your property.

After delinquency, you incur a 6 percent penalty and interest charges applied monthly. In July, you are hit by at least 20% in collection/attorney fees. Taxing authorities usually hire lawyers to assist with collecting unpaid property taxes. These costs are transferred to property owners.

If you don’t make any effort whatsoever to pay your overdue property tax for months, you risk losing your property. Taxing authorities can sell your property to recover overdue taxes.

How much time do I have before foreclosure because of overdue property tax in Texas?

It depends! The time taken for property to be foreclosed because of unpaid property taxes depends on the local market conditions and taxing authority in question. Generally, it can take two to four months for a lienholder to foreclose on a property.

In Texas, foreclosure processes can begin any time and are generally completed in two months if they are uncontested. Property owners have an opportunity to contest state, local or federal government’s legal claims on their property even if taxes are unpaid.

I don’t have money. How do I avoid missing my Texas property tax due dates?

There are several ways to avoid facing the consequences of unpaid property taxes in Texas. As mentioned above, you can contest a foreclosure. However, you need a legal team which will add unnecessary costs. What’s more, you can lose a case and your property.

It’s also possible to qualify for property tax exemptions that reduce or eliminate tax bills. However, exemptions aren’t guaranteed. The same applies to payment plans. While you can get instalment payments, you must meet certain requirements.

Property owners should just pay tax to avoid hefty charges. There are property tax lenders in Texas that give property owners affordable loans.

PropertyTaxLoanPros.com is one such lender that can help you avoid missing important Texas property tax due dates. Property Tax Loan Pros offer quick, affordable, and flexible property tax loans to all types of property owners, including those with bad credit scores and those in need of personalized repayment plans. Avoid hefty fees and foreclosure by calling 866-531-7678 or email: info@propertytaxloanpros.com

Texas Property Tax Exemptions – Everything You Need to Know

Overview: Texas Property Tax

Texas doesn’t have a state property tax. Property taxes are locally assessed and administered. States charge property taxes to pay for roads, schools, emergency response services, and other public services. In fact, Texas property taxes contribute most of the tax funding available to the local government ($67 billion+). However, Texas property taxes can become a burden to property owners.

Consequences of Overdue Property Taxes in Texas

Property owners in Texas face serious consequences if they don’t pay due property taxes. The most notable consequences include;

Accumulation of late fees and penalties: The late fees and penalties charged on overdue property taxes accumulate very fast. Counties can charge a base late fee of 6% a few months after property taxes are due. A 1% monthly interest is also charged, increasing by 1% monthly if taxes remain unpaid.

The base late fee can also double to 12% if the taxes remain unpaid for a year. When you consider the fact that counties can charge attorney fees (up to 20% of your tax bill), it’s easy to see how overdue property taxes become unmanageable.

Foreclosure: You can lose your property in the worst-case scenario because of accrued Texas property tax. If a tax lien is placed on your property, the local taxing authority (county) can foreclose on your property when overdue tax and accumulated late fees and penalties remain unpaid for extended time periods.

This explains why Texas property owners turn to property tax loans. A Texas property loan can help property owners with overdue taxes offset their tax liabilities and get more favorable repayment terms. Understanding Texas property tax exemptions can also help to offset some or all overdue property taxes.

Types of Texas Property Tax Exemptions

Property tax exemptions can be broadly categorized as total or partial. Partial exemptions reduce overdue taxes by a certain percentage or fixed amount of the property’s value. Total exemptions remove all overdue taxes. Taxing units in Texas have the mandate to offer some mandatory exemptions. They also decide on who to offer such exemptions locally.

it’s important to discuss exemption provisions in regards to different properties, individuals, organizations, etc. to understand the different types of property tax exemptions in Texas.

a. Tax exemptions for residence homestead

As per Texas Property Tax Code 11.13b, school districts can offer a $25,000 tax exemption on residence homesteads. Tax Code 11.13n allows tax units to offer separate residence homestead tax exemptions up to 20% of the property value (appraised value). Tax Code 11.13a allows counties that collect flood control or farm-to-market taxes to offer $3,000 in residence homestead exemption.

To qualify, someone simply needs to have an ownership interest and use the property as their principal residence. What’s more, you shouldn’t claim exemption on any other residence homestead in Texas or other states in the US.

b. Tax exemptions for disabled persons and individuals aged 65 years and above

Disabled persons, as well as elderly persons (aged 65 and above), can enjoy additional $10,000 residence homestead tax exemptions from school districts as per Texas Tax Code 11.13c. Section 11.13d allows taxing units to offer separate residence homestead tax exemption of $3,000 or more.

Elderly individuals aged 65 or more must be living in their property to qualify for local option exemption. Surviving spouses can enjoy exemption if the older homeowner dies. However, they must be aged 55 or more at the time of their spouse’s death. They also need to live in the property in question and apply for an exemption.

c. Tax exemptions for veterans

Texas Tax Code 11.22 offers partial exemptions to disabled veterans and their surviving children and spouses. Tax Code 11.132 gives residence homesteads partial exemption applicable to residence homesteads given to disabled veterans via charity. Exemptions are also extended to surviving spouses provided they don’t remarry. Tax exemption amount is determined by the service-connected disability percentage.

d. Tax exemptions for manufactured & cooperative housing

Texas property tax exemptions may be extended to manufactured homes as per Texas Tax Code 11.432a. For such homes to get homestead exemptions, owners must adhere to detailed provisions on statement of ownership. Cooperative housing can also enjoy homestead exemptions as per Texas Tax Code 11.13o.

e. Tax exemptions for unstable or uninhabitable residence

As per Texas Tax Code 11.135a, owners of uninhabitable residences can receive exemption from such structures, land, and improvements while they construct a replacement structure on the land. For this tax exemption to be applicable, the owner has to actively be constructing a replacement residential structure or preparing the site. This exemption is extended for a maximum of two years.

Tax exemptions apply in many other scenarios. For instance, Heirs to a property and surviving spouses of first responders can apply for exemption. Exemptions can also be extended to property owned by community land trusts and religious organizations. Texas property tax exemptions are a vast subject that should be explored with the help of experts.

Applying for Property Tax Exemption in Texas

Property owners seeking property tax exemptions in Texas can apply with appraisal districts. Filling should be done before 1st May. Appraisal district chief appraisers decide if exemptions are given or denied.

Some exemptions may demand filing once, while others may require annual filing. Majority of one-time exemptions allow chief appraisers to ask for new applications verifying eligibility for exemption.

While chief appraisers decide whether applications for tax exemptions are approved or denied, property owners can appeal unfavorable decisions. Consequently, taxing units can challenge tax exemptions given to property owners.

Generally, property is taxable in Texas unless the owner or persons with interest to the property i.e., heirs can meet every legal requirement for an exemption. Property tax exemption forms ask all/most of the information required to grant to deny an exemption. In most cases, exemption is granted or denied based on the property’s use, a property’s qualifications for tax exemption, and the owner’s eligibility.

FAQs About Texas Property Tax Exemptions

A chief appraiser has denied my application for property tax exemption in Texas. What can I do?

Chief appraisers can deny tax exemptions because a property owner doesn’t show entitlement to exemption or their property doesn’t qualify for exemption. Other reasons include lack of proper documentation, errors in documentation i.e., documentation doesn’t match with the original property address. As mentioned above, you can appeal a chief appraiser’s decision to deny you exemption. However, if your appeal doesn’t materialize, you’ll have to pay your overdue property taxes.

I can’t get a property tax exemption, what do I do?

If you are denied Texas property tax exemptions and appeal the decision and still fail to secure exemption, you’ll have to pay property tax or face the consequences mentioned above, like hefty penalties and possible foreclosure.

You can avoid these negative outcomes by getting a property tax loan to offset your overdue taxes. Luckily, there are many great property tax loan providers in Texas, such as Texas Property Tax Loans Pros, ready to assist. Get a quick, reasonably priced property tax loan NOW and save your property regardless of your credit score.

Where Do I Pay Property Taxes in Texas?

Before you pay property tax in Texas, you need to know when taxes are due, how much taxes you owe, tax payment deadlines, consequences of non-payment, and more. First things first:

When Should I Expect My Texas Property Tax Bill?

Taxing units in Texas mail tax bills in October. The bills are due on receipt, and delinquency begins on 1st February. If February is approaching fast and you haven’t received your bill, contact the local tax office, ask for your bill and settle as required.

There are reasons for failing to get a property tax bill. There may be a change of ownership of the property in question, and the tax unit isn’t aware. Your tax account could also be under review or hasn’t been certified. Be proactive about tax bills that aren’t forthcoming to avoid issues.

Important: You must pay your property tax in time whether or not you receive a bill. Your tax bill and other charges (penalties or interest) still count even if you don’t receive a bill.

Where to Pay Property Taxes in Texas

Property owners in Texas can pay property taxes in several ways. Contact your tax collection office locally to get accurate, updated details on where to pay property tax in your county. However, you should expect the following methods regardless of where your property is in Texas;

I. Pay Cash (in a tax office)

It is possible to pay for property tax using cash. For this method, go in person to your respective tax office location.

II. Money Order or Check

Tax offices in Texas also accept money orders or checks taken in person or mailed to the respective tax office location.

III. Via Credit Card

As per Texas Tax Code Sec. 31.06, tax collectors are obligated to accept taxes paid via credit card. Collectors can charge a processing fee for this payment method. However, the fee is capped at 5% of all taxes, penalties, and interest due.

As per the Texas Comptroller, Glenn Hegar, of Public Accounts, Visa, Mastercard, American Express, and Discover cards are accepted. Credit card transactions can’t be changed or deleted.

Paying is as simple as settling the pre-populated amount due. You can change the amount with a preferred amount. To have a smooth credit card payment process, ensure the name on your card appears as it is on your account. The card should also be valid. Contact the appropriate office in case of any credit card payment issues.

IV. Escrow

Property owners can also get into escrow arrangements with tax collectors as per Texas Tax Code Sec. 31.072. Taxing units can enter into contracts with property owners whereby owners deposit taxes in escrow accounts maintained by collectors to provide money for paying taxes.

Contracts should be made after 1st October (of the year before a tax year). This mode of payment can apply to property owners with multiple properties. However, the property owner must request escrow payments to pay taxes for multiple properties.

V. Work Contract Arrangements

As per Tax Code Sec. 31.035, governing bodies of taxing units can allow elderly individuals aged 65 or more to perform services for a taxing unit instead of paying property taxes charged on those person’s residence homestead.

Governing bodies of school districts can allow individuals to offer teaching services for a school district instead of paying taxes. This provision is stipulated under Tax Code Sec. 31.036. As per Sec. 31.037, governing bodies of school districts can authorize corporations among other business entities to allow their qualified employees to offer teaching services to a high school in the school district instead of paying property taxes due on the property owned by that business.

FAQs About Paying Property Taxes in Texas

Can I pay property taxes in installments?

Whether you are paying your taxes in person, online, or over the phone via methods discussed above, you are only allowed to pay in installments if you have an installment plan in place or you have qualified for exemptions that allow partial payment.

What’s the deadline for paying property tax in Texas?

You must pay property taxes in Texas before 1st February. Property taxes that aren’t paid by 31st January result in delinquency. Penalties and charges start accumulating in February.

Once the initial tax bill is sent by the taxing unit, property owners have at least 21-days. Bills mailed later than 10th Jan result in delinquency after much later than 1st February. It’s advisable to pay taxes before a year ends to deduct those payments from your federal income taxes.

What happens if I can’t pay property tax in time?

Failing to pay property tax in Texas results in hefty penalties and interest charges added onto due taxes. The penalties and interest also increase constantly. If you don’t pay for a year, you will face additional charges that are almost 50% of your tax bill. A 20% attorney fee is applicable on top of the interest that accumulates monthly. Eventually, unpaid property taxes usually result in lawsuits and foreclosure.

I can’t afford to pay property taxes in Texas. What do I do?

You can seek property tax exemptions to reduce or get rid of your property tax. The Tax Code also has provisions for tax payment plans. For instance, property owners can be allowed to pay overdue taxes in installments. However, payment plans aren’t assured. You can be denied an exemption or a payment plan. What’s more, your taxes will still be accumulating.

It may be better to seek a property tax loan and settle your tax bill before you start getting penalized. Luckily there are many lenders in Texas willing to assist distressed property owners in settling their tax bills.

PropertyTaxLoanPros.com is among the best property loan providers in Texas. CALL 866-531-7678, Email: Info@propertytaxloanpros.com for affordable property tax loans from Property Tax Loan Pros. The loans are quick to apply and receive, flexible to pay, and non-discriminatory even to individuals with bad credit. Application is also FREE!

Texas Property Tax Rates

Texas has higher property tax rates than most states in the US. The average property tax rate in Texas is 1.69% against a national average of approximately 1.07%. While Texas property taxes are over 57% higher than most states, the state compensates by not charging state or personal income tax. Also, Texas doesn’t charge for residential real estate transfers.

If your assessed property is worth $200,000, you should expect to pay $3,380 in property taxes in Texas against $2,140 annually in other states. What’s more, some counties in Texas have tax rates that are higher than 1.69%. Tarrant County is a good example with a 2.01% property tax. For a $200,000 property the effective annual tax rate is $4,020.

Texas is home to approximately 4,000 local entities counties, cities, and school districts) capable of collecting property taxes.

How are Property Tax Rates Calculated?

Before looking at property rates charged by individual counties or other local entities, it’s important to understand how Texas property taxes are calculated.

Every year, appraisers evaluate all property in Texas. Property tax rates are recalculated based on appraiser findings. Generally, tax rates remain unchanged, and when they change, they do so gradually over several years.

Calculating Property Tax Rates

In Texas, several government entities have an independent role in the collective determination of property tax rates each year. The main entities are appraisal districts, city councils, and school districts. However, the main task of setting tax rates is largely decided by the value set by local appraisal districts.

Step by Step Guide to Calculating Texas Property Tax Rates

Below is a quick guide on calculating Texas property tax rates as per the Texas Tribune.

Step 1: Property Appraisal

The process of calculating tax rates begins with property appraisal. Every county appraisal district determines property value based mainly on market conditions.

Step 2: Contesting

If a property owner doesn’t agree with the value set by the appraiser, they are free to protest to the respective appraisal review board, which will leave the tax rate unchanged or set a new value.

Step 3: Appeal

Property owners can still appeal the board’s decision in court. The process usually results in arbitration or a court trial. The outcome of such processes determines the final property value.

Step 4: Exemptions

Once a final property value is determined, exemptions are deducted. Many property owners in Texas receive various tax breaks ranging from school tax breaks to property tax exemptions based on elderly homeowners (aged 65 and above) as well as disabled property owners.

The final value equals the appraised value minus any exemptions for which you/your property qualifies. Many homeowners can receive breaks on school taxes, while elderly and disabled homeowners can qualify for additional exemptions.

Step 5: Setting Property Tax Rate

After deductions are factored in, tax rates are set. The rates must be adopted by local taxing entities (cities, school districts, counties, etc.). Adoption of new tax rates is done publicly.

Once tax rates are set, property owners can receive their tax bills detailing the value of a property and the respective tax rate. Property owners should pay their property taxes to tax assessor collectors unless the local government collects property tax directly. Tax assessor-collectors send collected tax to the respective local taxing units.

Property tax rates are a % of a home’s appraised value. If the tax rate for the year is 2% and the value of the property in question is $250,000, the total property tax will be $5,000 that year.

Top 20 Counties/Cities with the Highest Texas Property Tax Rates

Below are counties and cities in Texas with the highest property tax rates, according to Smartasset estimates.

  • Menard has a 2.07% property tax against a $57,000 mean property value
  • Hidalgo has a 2.05% property tax rate against a $84,000 mean property value
  • Harris has a 2.03% property tax rate against a $165,000 mean property value
  • Williamson has a 2.01% property tax rate against a $245,100 mean property value
  • Brazoria has a 2% property tax rate against a $173,900 mean property value
  • Bexar has a 1.97% property tax rate against a $152,400 mean property value
  • Hays has a 1.97% property tax rate against a $222,300 mean property value
  • Rockwall has a 1.95% property tax rate against a $244,400 mean property value
  • Wichita has a 1.94% property tax rate against a $96,000 mean property value
  • Collin has a 1.94% property tax rate against a $288,900 mean property value
  • Dallas has a 1.93% property tax rate against a $161,500 mean property value
  • Deaf Smith has a 1.92% property tax rate against a $91,800 mean property value
  • Kaufman has a 1.88% property tax rate against a $161,600 mean property value
  • Nueces has a 1.87% property tax rate against a $130,700 mean property value
  • Kleberg has a 1.85% property tax rate against a $88,200 mean property value
  • Bell has a 1.83% property tax rate against a $141,200 mean property value
  • Travis has a 1.82% property tax rate against a $298,800 mean property value
  • Brazos has a 1.81% property tax rate against a $186,000 mean property value
  • Montgomery has a 1.80% property tax rate against a $223,900 mean property value
  • Mitchell has a 1.80% property tax rate against a $70,000 mean property value

Counties with the Lowest Texas Property Tax Rates

Ward and Borden have the lowest property tax rates at 0.51% and 0.34%, respectively. Borden and Ward counties have a median property value of $113,100 and $86,100, respectively.

How to Lower Property Tax Rate

Property owners keen on enjoying a lower property tax bill can consider owning property in areas with lower tax rates. Looking for state and local tax exemptions can also help to reduce the resulting tax bill. It also helps to avoid making changes just before a property assessment as this may result in a higher property value and final tax rate.

How to pay high property taxes

If Texas property tax rates are high, resulting in a high tax bills, property owners can consider taking property tax loans to offset the bill.

Texas has good property tax lenders like Property Tax Loan Pros that specialize in giving fast, affordable loans with flexible repayment plans to all types of property owners, including those with bad credit.

CALL – 866-531-7678 or email – info@propertytaxloanspros.com.

What If I Do Not Pay My Texas Property Taxes

If you are a property owner in Texas, ensure you pay property tax in time. While the average tax rate is 1.69% against the 1.07% average in the U.S., some cities like El Paso have tax rates that surpass the 2% mark. El Paso has an effective property tax rate of 2.24%.

Generally, Texas is among the states with the highest property taxes. Unfortunately, you also stand to suffer the most stringent consequences for failing to pay your taxes. Here’s a more detailed discussion on what happens to Texas property owners who don’t meet their property tax obligations.

Consequences of Not Paying Property Taxes in Texas

What if I do not pay my Texas property taxes? What should I expect?

Penalties and Interest Will Start Accumulating

Texas property tax bills are mailed in November. Property owners get them in a few weeks and have up to 31 January to pay. Even if you don’t receive your property tax bill, you will still be required to pay due taxes. Property owners are therefore required to be proactive about property taxes as opposed to sitting and waiting for a bill that isn’t forthcoming.

If tax bills aren’t paid by 31st January, penalties start accruing on 1st February. A 7% penalty is charged on overdue property tax as well as a 2% interest that accrues monthly.

Example: If you owe $10,000 in property taxes and don’t pay by 31st January, your tax bill on 1st February will include a 7% charge ($700), resulting in a total tax bill of $10,700 in February. A 2% interest charge will also be applied cumulatively every month. In March, total penalties and interest will be 9%.

The charges will keep increasing by 2% i.e., 11% in April, 13% in May, etc. In July, a 20% collection/legal fee is applied. While interest increases by 1% instead of 2% thereafter, by December, the total penalties and interest will be 47% + of the original tax bill.

Lien on Property & Foreclosure

Overdue property taxes almost always results in a lien on a property as per Tax Code 32.01. When this happens, the taxing authority has the right to take over property and use it as collateral for overdue taxes.

What follows is a tax sale to recover taxes and accrued interest and penalties. Overdue property taxes are declared delinquent if they remain unpaid on 1st February. On delinquency, tax authorities are at liberty to begin foreclosure as per Texas Tax Code 33.41. Property owners who don’t contest a foreclosure or pay overdue taxes and accrued penalty and interest charges risk losing their property.

Courts can listen to valid defenses to stop foreclosure. However, a judgment must be entered. If the judgment is against a property owner, their property will be auctioned. If the property doesn’t sell in an auction or tax sale, it becomes the property of the county. Other attempts will be made to sell the property.

Before a tax sale, property owners must get a written notice delivered via mail or personal delivery. Tax sale notice guidelines are highlighted in Tax Code 34.01. For instance, tax sale notices must be published on a local daily/newspaper or posted publicly if a county doesn’t have a newspaper.

Stopping Foreclosure on your Texas Property Because of Overdue Property Taxes

It is possible to stop taxing authorities from selling your property by simply paying the amount of tax you owe and accrued charges (penalties and interest).

I don’t have money. How do I pay for property tax in Texas? If you don’t have money, you can consider taking a property tax loan. Texas has good property tax loan lenders like PropertyTaxLoanPros.com who offer quick, affordable loans to every type of distressed property owner, including those with bad credit and economic difficulties.

Getting Your Foreclosed Property Back

Texas Property Tax Code: 34.21 gives Texas property owners the chance to redeem property that has already been foreclosed due to overdue taxes. Property owners have two years from the time a deed has been filed to look for money and buy back the property. However, they must cover all property costs incurred by the new buyer.

Generally, the amount paid for the house, deed recording fee, penalties, interest, taxes paid by the purchaser, and a 25% redemption fee must be paid back. Given how tax sales work, you should expect to pay more if you let your house be foreclosed. The importance of seeking property tax loans early can’t be overlooked.

A good lender like PropertyTaxLoanPros.com can offer property tax loans at a very low cost compared to what you will incur if you allow foreclosure and then buy back your property. Paying off overdue property taxes cures off delinquency, stops foreclosure, and removes the tax lien. However, you won’t incur any penalties or interest charges if you borrow early.

Lawsuit

You can get sued for failing to pay your property taxes on a variety of property types in Texas. Before you think lightly about the phrase “what if I do not pay my Texas property taxes”, think about legal fees and court costs that will add to your overall costs. A lawsuit usually precedes foreclosure. For mortgaged property, you can be left vulnerable to higher monthly repayments if your mortgage company decides to settle the tax bill.

State Solutions to Overdue Property Taxes

Texas Law has some solutions for unpaid property taxes. The state allows 3rd party lenders to take on property tax lien and repay overdue taxes and other charges (penalties, interest, and legal charges).

In fact, seeking the assistance of a Texas property tax loan provider is the best solution when you are faced with difficulties paying overdue tax. Property owners shouldn’t wait for delinquency or state solutions when it’s too late.

PropertyTaxLoanPros.com offers quick property tax loans ensuring taxes don’t become overdue. What’s more, the lender doesn’t discriminate. All borrowers are welcome, including those with bad credit scores. Client evaluations are also holistic, and payment plans are flexible.

Most importantly, there are no application fees, and the monthly repayments are low. Applications are also fast, and funds are disbursed in record time. With lenders like Property Tax Loan Pros, defaulting on your Texas property tax obligations shouldn’t be an option! Call: 866-531-7678 or email – info@propertytaxloanpros.com.

Who is Eligible for a Property Tax Loan?

Property tax loans have helped thousands of Texans save their land and their homes from the tax collector. For nearly 80 years, Texans have used property tax loans to pay their property taxes on their own schedule-a schedule that works for them and their unique personal and financial situation.

If you’ve found yourself researching property tax loans or even gone so far as to consider taking one out, you’re likely interested in knowing exactly what qualifications borrowers must have to qualify for a property tax loan. Additionally, it’s also helpful to know a little about the characteristics that lenders look for in potential borrowers. In that same vein, it also helps to know about characteristics that don’t typically matter in the eyes of most lenders.

Each lender will, of course, closely review every potential borrower’s application to make an eligibility determination before issuing a loan. But with this information, property owners can at least get a sense for where they stand as they begin considering taking out a property tax loan.

Types of property eligible for property tax loans

Property tax loans are available for all types of property in Texas. While lenders typically avoid making loans to pay property tax on personal property such as boats and automobiles, lenders very often issue loans to pay property tax on both residential and commercial real property.

Therefore, property tax loans are equally available to property owners to pay the taxes on their primary residences as they are to help owners pay the taxes on rental property, office buildings, warehouses, or any other commercial or investment property that they may own.

Owners eligible for property tax loans

Property tax loans are available to virtually all property owners in Texas. Regardless of whether they own just a primary residence or a diverse portfolio of investment properties, most Texas property owners can qualify for a property tax loan.

Despite the generally broad availability of property tax loans, there are still a few key criteria that all potential borrowers must satisfy in order to qualify for a loan.

First, the borrower must be at least 18 years of age. Thus, any property owner seeking to apply for a property tax loan should have a piece of identification-preferably some form of Texas state-issued identification, such as a driver’s license-easily accessible so the lender can quickly verify the potential borrower is at least 18 years of age.

On a related note, it is important to point out that the law provides property owners who are over the age of 65 and eligible to claim certain property tax exemptions are not eligible for property tax loans. Rather, the law is written to encourage those property owner to take advantage of special incentives available to them.

Second, the overdue taxes on the property must be at least $3,500. If overdue taxes are less than $3,500, the property owner will not be eligible for a property tax loan. But so long as the amount of overdue tax is at least $3,500, you will very likely be able to find a property tax loan regardless of how much you owe. Indeed, lenders often make loans ranging from this minimum amount to $100,000 or more.

Owners seeking a property tax loan, therefore, should have a copy of their tax bill at the ready both in order to verify that they owe at least $3,500 in overdue taxes and to help the lender know exactly what size loan they need.

Third, the potential borrower must own the property and be able to prove it. Typically this means presenting the lender with a deed to the property on which taxes are owed, which lists the loan applicant as owner of the property.

Characteristics that lenders look for in borrowers

Beyond the three basic criteria set forth above, there are also other characteristics that lenders look for in borrowers. Possessing or lacking these characteristics will not by any means make or break a potential borrower’s application. Rather, these are factors that are more likely to influence the borrower’s interest rate, repayment schedule, and other terms of the loan.

The first and most influential is the borrower’s credit score. We’ll mention a bit more about this in the next section, but before we get there, a person’s credit score is essentially a rating of the borrower’s creditworthiness. That is, a credit score is a numerical indicator of how likely a person is to repay his or her debts. Thus, lenders are extremely interested in their applicants’ credit scores because it gives them a way to gauge the risk of lending money to that person.

A person with a high credit score typically has a very good credit history, entailing few if any late or missed payments, a history of using credit responsibly for an extended period of time, and proportionally low amounts of total debt. Because lending to a person with a high credit score is less risky for the lender as a general matter, borrowers with good credit typically receive lower interest rates and more favorable loan terms overall.

Somewhat related to credit score, lenders will look into the borrower’s overall debt situation. A borrower with large amount of other debt-especially consumer debt like auto loans or credit cards-presents a larger risk to the lender because that borrower will have fewer funds available each month to make his or her property tax payment if the borrower is also paying down an expensive auto loan or high interest credit card each month.

Finally, lenders will also look into the borrower’s employment and other assets the borrower has to ensure the borrower has a way to pay back the loan.

Characteristics that are less important

Although good credit is definitely a plus when it comes to applying for a property tax loan, bad credit will generally not preclude you from getting the property tax loan that you need. Property tax lenders recognize that everyone experiences financial hardship from time to time, and that sometimes all they need to get back on their feet is a little help. For this reason, many lenders are eager to work with their clients to develop a plan that works for them, even if they have less-than-perfect credit.

Additionally, property tax lenders usually don’t mind if a piece of property is encumbered with another type of lien such as a mortgage. To be sure, this isn’t because property tax lenders are carefree. Rather, the law expressly provides that property tax liens take first priority over any other type of lien that may encumber a piece of property. Thus, you don’t need to own your property free and clear in order to qualify for a property tax loan.

What You Need to Know Before Taking Out a Property Tax Loan

Property tax loans are relatively simple and straightforward, especially when compared to other lending products like mortgages.

Read more about the basics of how property tax loans work, and about who is eligible to take out a property tax loan.

But essentially, these useful financial products help property owners avoid losing their property to foreclosure by providing the cash necessary to pay their tax obligation up front and allowing the owner to repay those funds over time pursuant to a customized payment plan.

In this post, we’re going to set out some useful information to know about property tax loans to guide you in your search for the right lender.

Who issues property tax loans?

Property tax loans are issued by private lenders that are typically dedicated to making and servicing exclusively property tax loans. This singular focus allows property tax lenders to channel all their knowledge and resources into providing the best financial product for their specific type of client.

Nearly all lenders provide a convenient online portal for their clients to use to apply for their loan. The lender will review the application and a professional loan officer will call the potential borrower to gather the rest of the information necessary to determine the potential borrower’s eligibility for a loan.

The application and approval process typically takes just one to two days, with funds dispersing to pay the borrower’s delinquent property tax usually within a week.

Does anyone regulate the property tax lending industry?

Yes. Property tax lenders, like all commercial and residential lenders in Texas, are regulated by the State of Texas. The state agency responsible for providing oversight to our important industry is the Texas Office of Consumer Credit Commissioner.

The OCCC can be reached by phone at (512) 936-7200 or online at https://occc.texas.gov. The OCCC’s physical offices are located in the Finance Commission Building at 2601 N. Lamar Blvd. Austin, TX 78705.

Additionally, although not a regulatory body, the Texas Property Tax Lienholders Association is a professional organization comprised of the leading lenders in the property tax loan industry. The TPTLA provides valuable information about property tax loans and other matters relevant to the industry. You can find the TPTLA online at https://tptla.org.

Can my business take out a property tax loan?

Yes. This is an important point. Individual property owners are not the only ones able to benefit from property tax loans. Property tax loans, rather, are available to nearly any legal entity that is capable of owning property. Thus, if your business, for example, owns an office building and owes property taxes on that building that it cannot pay, the business can take out a property tax loan just like an individual could.

What interest rate will I pay?

The interest rate that a borrower will ultimately pay depends on a variety of factors and will differ for every borrower. Borrowers with exceptional credit may see interest rates as low as 9-10%, while other borrowers’ interest rate will be higher.

Still, considering the average interest rate on a consumer credit card ranges from 19% to 24%, taking out a property tax loan can save a significant amount of money in interest versus charging your property tax to a credit card.

Other factors that influence the interest rate that a borrower will pay include the property’s value, its location, and the borrower’s credit history.

What other fees are lenders allowed to charge?

Property tax lenders are, by law, allowed to charge only certain fees. Essentially, the only fees that property tax lenders are authorized to charge are fees necessary to allow the lender to cover its overhead expenses and realize a reasonable profit.

You can consult the Texas Financial Code to find a full list of authorized charges and fees that property tax lenders may charge their clients.

How long will I have to repay my property tax loan?

Property tax loans are designed to provide property owners with the flexibility they need to balance satisfying their tax obligations with all the other expenses and events that occur in everyday life. For this reason, property tax loan repayment terms vary from borrower to borrower according to each one’s unique financial circumstances.

Lenders frequently offer terms from 2 years all the way to 10 years, depending on the size of the loan and the borrower’s situation.

How can a property tax loan save me money?

The primary way that property tax loans save borrowers money is by avoiding the late fees and interest charged by the government after property taxes become delinquent.

And those fees can add up fast. Property taxes are due by January 31 of each year. If property taxes remain unpaid on February 1, the taxing authority charges a 6% penalty plus 1% interest for every additional month the taxes go unpaid. If the taxes are still unpaid by July 1, the penalty increases to 12%. This brings the total penalty 18% so far (12% penalty plus 6 months at 1% interest for each month). Also, if taxes remain delinquent for this long, the taxing authority may charge an additional 20% attorney’s fee on top of everything else. Thus, you could be on the hook for an extra 38% simply by paying your taxes 6 months late.

Property tax loans save property owners money by paying their tax precisely when it’s due, then charging the borrower a much lower interest rate, which is fixed for the life of the loan.

A full breakdown of the property tax fee schedule can be found on the Texas Comptroller’s website.

Can I pay off my property tax loan early?

Texas law prohibits property tax lenders from preventing or penalizing residential borrowers from paying off their property tax loans early. Thus, if you took out a property tax loan to pay the property tax on your residence, you are generally free to repay the loan as quickly as you can.

When should I not take out a property tax loan?

Property tax loans can and have helped thousands of Texans achieve financial security. Still, there are several notable situations in which a property owner should not take out a property tax loan.

If a property owner is over the age of 65, disabled, a veteran, or has homesteaded their property, they are generally eligible for property tax deferrals or exemptions that can prove more valuable than a property tax loan.

We encourage you to consult with your local taxing authority to determine whether you qualify for any property tax exemptions that may help lower your overall tax obligation.

What is a Property Tax Loan?

The State of Texas authorizes counties to assess and collect property tax on most real property and some types of personal property, such as automobiles and boats, located within the county. Property tax is generally due by January 31st of each year and based on the assessed value of the property from the prior year.

Property owners that cannot pay their property tax face a variety of potential consequences ranging from the taxing authority placing a lien on their property to the property being foreclosed and sold to satisfy the debt.

But falling behind on property taxes does not by any means guarantee losing your property. Rather, among several options, a well-structured property tax loan can help property owners satisfy their tax obligation as part of a broader strategy for achieving financial success.

How does a property tax loan work?

According to the Texas Office of Consumer Credit Commissioner, “A property tax lender is a person who engages in the business of making, transacting, or negotiating property tax loans.” In other words, property tax loans are loans that property owners take out to help them pay current or past-due property taxes when they cannot pay their property tax themselves.

A property tax loan is a financial product very similar to other types of personal loans. When a property owner lacks the cash to fully satisfy their tax obligation and either cannot liquify or desires to not liquify other assets in order to free up the necessary cash, a property tax lender will step in to loan the money necessary to pay the tax.

As with other types of secured credit, the lender will then place a lien on the property. But, in general, a lien is a third-party interest in a piece of property that vests the third party (called the “lienholder”) with certain rights with respect to the property. Most notably, a lien allows the lienholder to foreclose on the property, essentially forcing a sale to satisfy the debt.

Thus, boiled down, property tax loans work like this: The property owner borrows money from a lender; the owner then uses that money to pay his or her property tax; and the lender places a lien on the property. Once the owner repays the loan in full, the lien is removed and the parties’ business relationship concludes. In some instances, property owners must petition the local court to remove the lien, and in other cases the lender will take care of unencumbering the property.

What does a property tax loan look like?

Property tax loans come in a variety of styles and options. Because every borrower’s financial situation is different, any competent property tax lender should strive to create a financial product that best serves the individual borrower’s needs. Still, all property tax loans share a few common characteristics.

First, while many property tax lenders do not charge application fees or other up-front costs when applying for a loan, most lenders charge what is referred to in the industry as an “origination fee.” An origination fee is an additional fee that lenders collect to help them cover overhead expenses associated with generating, underwriting, and issuing the loan in the first place. But precisely because lenders charge origination fees to cover overhead expenses, not to make a profit, borrowers should approach lenders that charge high origination fees with some skepticism.

While in theory a lender could charge a flat origination fee, it is common practice for lenders to structure the origination fee in terms of a percentage of the total loan amount. Thus, larger loans are more expensive in this respect.

Second, your property tax loan will, of course, carry an interest rate. Interest is the premium that borrowers pay for the privilege of using borrowed money. And from the lender’s perspective, interest compensates the lender for both the time-value of money and the risk inherent in lending money.

Property tax loans are a type of secured credit, meaning the borrower puts up collateral to guarantee the loan in case he or she defaults on the payments. But for this reason, the interest rate on a property tax loan is typically much lower than the rate property owners would pay if they, for example, used a credit card to make their tax payment.

Interest rates vary from borrower to borrower based on a variety of factors. Notable factors that influence every borrower’s interest rate, however, include the property’s value, its location, and the borrower’s credit history. It also bears noting that below-average credit does not necessarily disqualify a borrower in the eyes of many lenders. A less-than-stellar credit history, therefore, should not discourage you from seeking out a property tax loan.

Third, as we mentioned briefly above, taking out a property tax loan will authorize the lender to place a lien on the property. Technically speaking, if a property owner already owes overdue taxes, the local taxing authority has likely already placed a lien on the property. In that case, the lien simply transfers from the taxing authority to the lender. But in cases where taxes are not yet overdue, the lender will place a lien on the property itself.

How long does it take to get a property tax loan?

In this day and age, applying for and receiving a property tax loan is simple and straightforward. Potential borrowers will almost categorically begin by applying for their loan online. A professional loan officer will then typically call the borrower on the phone to gather the rest of the information that the lender needs to determine whether the borrower is eligible and what terms it can offer.

Loans made to pay taxes on non-homesteaded property can sometimes close in as little as one day. The law requires a three-day waiting period between approval and closing for loans made to pay taxes on homesteaded properties. But in any event closing typically takes place about a week after approval, and in many cases sooner.

Where do I go to get a property tax loan?

Property owners have a variety of lending options at their disposal. Many lenders operate entirely online, while others maintain physical locations as well.

Here at PropertyTaxLoanPros.com, our lending professionals are eager help craft a plan that works for you and your unique situation. So, if you own property in Texas and are struggling to pay your property tax, we encourage you to reach out to us to see how we may be able to help. You can reach us by phone at 866-531-7678 or by email at info@propertytaxloanpros.com.