Unpaid property taxes and tax liens in Texas
Updated October 27, 2026
In Texas, property taxes are secured by a lien on the property itself. If a seller hasn't paid, the debt doesn't leave with them: it stays with the house. Here is how it works and how to make sure it's settled before you own it.
The tax lien
Under chapter 32 of the Tax Code, a lien for each year's taxes attaches to the property on January 1 and takes priority over most other liens, including the mortgage. It lasts until the taxes, penalties and interest are paid. Taxing units can sue to foreclose on it, which is why homes appear in county tax sales.
How unpaid taxes grow
| When | What's added |
|---|---|
| January 31 | Usual last day to pay the year's taxes without penalty. |
| February 1 | Delinquent: 6% penalty plus 1% interest. |
| Each month to July | Penalty rises 1% a month; interest adds 1% a month. |
| July 1 | Penalty reaches 12%. A taxing unit with a collection attorney can add up to 20% more. |
| After July 1 | Interest keeps adding 1% a month, with no maximum. |
Some bills follow different rules (for example, bills from a lost exemption). The Comptroller publishes a chart for each tax year.
At closing
- The title company orders a tax certificate from each tax office, which shows what is owed.
- Taxes owed for past years are paid from the seller's proceeds. The current year is usually split (prorated) between buyer and seller.
- Unpaid taxes are a common reason closings slip, so ask early if the listing hints at a tax problem.
What to ask
- Are all taxes for past years paid, for every taxing unit, including MUDs and PIDs?
- Is the property on a payment plan, or in a tax suit?
- Will the title policy cover any unpaid taxes found after closing?
HouseDirt reads the live account balance from the county tax collector where it's published, and otherwise names the tax office to ask.
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Common questions
- Do unpaid property taxes transfer to the buyer in Texas?
- The tax lien is on the property, not the person, so unpaid taxes stay with the home after a sale. At closing the title company normally pays any taxes due from the seller's proceeds, using a tax certificate from the tax office.
- When are Texas property taxes delinquent?
- Taxes not paid by January 31 become delinquent on February 1. The tax office then adds a 6% penalty and 1% interest, and the penalty rises 1% a month to 12% on July 1. Interest keeps adding 1% a month with no cap.
- What is a tax certificate?
- A tax certificate is a statement from the tax assessor-collector showing the taxes, penalties and interest due on a property, or that none are due. Title companies order one for each taxing unit before closing.
- Can a collection attorney fee be added?
- Yes. A taxing unit that hires a private attorney can add up to 20% to delinquent taxes to pay for collection, after notifying the owner.
Sources
- Texas Comptroller, paying your property taxes
- Texas Comptroller, penalty and interest charts
- Texas Comptroller, property tax law deadlines
- Texas Tax Code, chapter 32 (tax liens)
- Texas Tax Code, chapter 33 (delinquency)
- Texas Tax Code, section 31.08 (tax certificates)
More explainers
- MUD and PID taxes in TexasSpecial districts that can add thousands a year to a tax bill, and the notices sellers owe you.
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- TWIA windstorm insurance on the Texas coastWhy coastal homes often need a separate wind and hail policy, and the certificate it depends on.
- The Texas homestead exemptionThe $140,000 school-tax exemption, the 10% cap, and how to apply after you move in.
- Buying a Texas home with a septic systemPermits, aerobic maintenance contracts and inspections for on-site sewage systems.
- Colonias: what homebuyers should knowBorder-region subdivisions that may lack water, sewer, roads or a legal plat, and contract-for-deed risks.