Delinquent Tax Penalties

Texas Tax Code 31.01 governs the penalties and interest that taxing authorities can charge delinquent property owners. The bottom line is failure to pay your property will result in significant penalties and interest.  How much? As detail below in an excerpt from the tax code, in the first 6 months your taxes are delinquent the county can charge 12%  in penalties, 6% in interest and 20% a collection charge. That is a total charge of 38% of your tax bill for delaying the payment of your taxes for 6 months from the January 31^st due date.  After 6 months interest continues to accrue at the rate of 1% per month.

What most people do not realize is that once the county files a law suit to collect your taxes, additional court costs are added to your tax bill. The amount varies by county and the severity of your delinquency, but can be as high as $1,800.  So what does this all mean to your wallet?  Let’s say that a family does not pay their $7,000 tax bill when it is due on January 31^st and is not in a position to pay it until 1 year later after the county has filed suit.  Their approximate payoff on the original tax bill of $7,000 would be approximate $11,880. ($7,000 of taxes plus 44% in penalties, interest, collections plus $1,800 in court costs.  That is 68% of the original tax bill.