When Are Property Taxes Due in Texas?

Here’s what you need to know about when property taxes are due in Texas:

• Texas property taxes are due by January 31st, unless notified otherwise, to avoid penalty and interest charges.
• Payment plans may be available but typically come with additional interest, increasing the overall tax bill.
• Payment deferral options are available to eligible homeowners aged 65+, those with disabilities, and active-duty military personnel.
• A portion of property tax payments may be written off on a federal income tax return. Consult an accountant to determine the allowable deductions.
• Successfully protesting property taxes may result in a refund, in certain circumstances, after paying the tax bill. The professionals at Gill, Denson & Company can assist with the protest.

When Are Texas Property Taxes Due?

Texas property tax bills are typically mailed in October, and payment is requested upon receipt. However, most homeowners have until January 31st of each year to pay their taxes before they become delinquent. After this date, penalty and interest charges are added to the total amount due on a monthly basis until paid. If a bill is not received by January 10th, the delinquency date will be postponed as taxing units must allow homeowners at least 21 days to make a payment.

It’s best to pay the property tax bill upon receipt to avoid accruing additional interest or penalties. Homeowners who pay their taxes early may also receive a discount of up to 3% of their total bill, depending on the county they reside in.

Are There Payment Plan Options?

Tax collectors may offer payment plans extending up to 36 months but are not required to except for homestead residences. It’s important to note these plans usually come with interest attached, so the overall payment due could be greater. Signing an installment agreement acknowledges the obligation to pay all applicable taxes listed within its terms, including the interest.

There are also deferral and waiver options available to eligible homeowners who are 65 and older or have disabilities and to active-duty military personnel.

Tax Deferrals for 65+ & People with Disabilities

Homeowners aged 65 and older or those with disabilities may defer property taxes on their primary homestead until the home is sold or transferred (Tax Code Sec. 33.06). Interest will continue to accrue and will be due with the tax payment when the deferral ends. This happens either when the home is sold, or when it is transferred after the death of the last surviving qualified person.

To apply for a deferral, submit an affidavit to the local appraisal district. The surviving spouse of an eligible homeowner may submit an affidavit to continue the deferral after their spouse passes. They must be aged 55 or older and continue to live in the home as their primary homestead residence.

Penalty Waivers for Military Personnel

Eligible military personnel who are serving on active duty may pay their delinquent taxes without additional penalty or accrued interest (Tax Code Sec. 31.02). To be considered eligible, a person must be on active military duty in the state, or in the reserve forces and placed on active military duty, and be transferred out of state. The taxes will be due 60 days after the earliest of the following dates: discharge from active service, a return to the state for more than 10 days, or a return to non-active duty status in the reserves. 

When Can They Be Written Off?

A portion of property tax payments may be written off on federal income tax returns for the year they’re paid. For example, a payment made in 2023 may be written off in 2024 when the previous year’s taxes are filed. The Schedule A form for itemized deductions must be used instead of the standard deduction. It is important to note the maximum allowable deduction for state and local income taxes, including property taxes, is capped at $10,000 annually. Consult with a CPA or other tax professional to determine the allowable deductions for the current tax year.

What If a Reduction Comes After Taxes Are Paid?

If a property tax protest results in a reduction of the tax liability after taxes are paid, the homeowner will be eligible for a refund of the excess taxes plus interest (Tax Code Sec. 42.43). The interest is calculated from the delinquency date to the refund payment date and may not exceed 9.5% per year. If the refund is not made within 60 days of the chief appraiser certifying the correction, the interest rate increases to 12 percent annually.

Do you suspect you’re overpaying on your Texas property taxes? The team of experts at Gill, Denson, & Company are ready to help you get the tax breaks you deserve. We offer property tax protest services for residential and commercial properties in all 254 Texas counties.