Delinquent Properties Tax Penalties
In most Texas counties, property taxes are due October and delinquent on January 31st. Failure to pay your taxes on time can result in significant penalties and interest. Taxes that are not paid on time are subject to a 7% penalty on February 1st and then a 2% per month penalty and interest charge thereafter. Accounts that are not paid by June are typically turned over to the county attorney for collection and eventual foreclosure.
Detailed below is an example of the penalties and interest charges that a property owner would incur on a $10,000 property tax bill over a 12 month period.
Month Penalty Taxes Due
| Jan | 0 | $10,000.00 |
| Feb | 7% | $10,700.00 |
| March | 2% | $10,914.00 |
| Apr | 2% | $11,132.28 |
| May | 2% | $11,354.93 |
| June | 2% | $11,582.02 |
| July | 22% | $14,130.07 |
| Aug | 1% | $14,271.37 |
| Sept | 1% | $14,414.08 |
| Oct | 1% | $14,558.22 |
| Nov | 1% | $14,703.81 |
| Dec | 1% | $14,850.84 |
It is hard to fathom, but a $10,000 property tax bill that remains upaid for 12 months can incurr up to $4,850.84 of penalties and interest charges. It is also important to understand that most counties will move to foreclose your property when taxes remain outstanding for longer that 8 to 12 month. Once a property moves to the foreclosure phase, an additional $3,500 to $5,000 of court cost and legal fees are added to the account. So if you do the math, a $10,000 property tax bill that remains unpaid for 12 months can eventually end up costing you $19,850.84
If you do not have the means to pay your taxes, a Property Tax Loan is a great option for getting your taxes paid on time and avoiding the pentalties.
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