Motivated sellers
Can't afford the property taxes on your Texas land? Your options
The tax bill keeps climbing and the land earns nothing. Before it turns into penalties, interest and a lawsuit, here is what you can do, in order, and when selling is the smart move.
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In this guide (8 sections)
Land does not pay you back every month the way a rental does. When the appraised value jumps, the tax bill can outrun what the land is worth to you. A lot of owners get stuck right here: they cannot afford to keep it, they do not want to sell it for less than it is worth and they are not sure what happens if they wait.
This guide is general information, not legal or tax advice. A Texas attorney or tax professional can confirm what applies to your land and county.
What is due, and when?
Texas property taxes are billed in the fall and are due by January 31. They are delinquent on February 1.
By January 31
Pay the full bill and there is no penalty or interest.
February through June
Penalty starts at 6 percent and rises each month, and interest adds 1 percent per month.
After July 1
The penalty reaches 12 percent, and a collection attorney fee of up to 20 percent can be added. The taxing units can sue to collect.
Each month you wait costs more. If the account is several years behind, the penalties and interest stack on every year. Our page on selling land with back taxes covers the accounts that are already delinquent.
Can you lower the bill first?
Check these before you decide to sell. Some owners find real savings.
- Protest the appraisal. Appraisal notices arrive in spring. The protest deadline is usually May 15 or 30 days after the notice, whichever is later. Bring comparable sales and any problems with the land. A lower value means a lower bill every year.
- Check for a special valuation. Land used for farming, ranching, timber or wildlife management can be taxed on what it produces instead of its market value, which is often far lower. The use has to be real and there are rules. Ask your appraisal district about “open-space” or “1-d-1” valuation. If you already have one, do not change the use before you read Texas ag exemption and rollback taxes.
- Ask about a payment plan. Some tax offices will set up a payment agreement before an account goes to a collection attorney. Call the assessor-collector for your county and ask.
- Look for other exemptions. Homestead, age and disability exemptions apply to a home you live in, not to vacant land, but check your exemptions if you have a house on the tract.
Can the land pay for itself?
Sometimes, with the right use.
- A hunting lease can cover taxes on rural tracts, and it can also support a wildlife valuation.
- Grazing or hay can bring in income and keep an agricultural valuation in place.
- A small timber or mineral deal may help, but read what you sign. See selling or keeping mineral rights in Texas.
If you are going to lease land, ask an attorney to look at the lease first, because a lease can affect a later sale.
When does selling make sense?
It makes sense when the land does not earn its keep and you do not plan to use it. You are also better off selling sooner if:
- the bill is growing faster than you can pay it,
- you live out of state or far from the land,
- the land is inherited and no one in the family wants it,
- the account is already delinquent, or
- you owe a loan on the land as well.
When you sell, the title company pays the taxes from the proceeds, including any penalties and interest. You do not have to bring money to closing, and you keep the rest.
What if you wait too long?
The taxing units can file a suit to collect, and a court can order the land sold at a public tax sale. You lose control of the price. After a tax sale, Texas gives owners a right to redeem the land for a limited time, which is longer for homesteads and land used for agriculture. It requires paying the sale price plus costs and a premium, so it is not a cheap way out.
A sale you control almost always nets more than a tax sale does.
How does a cash sale work if the taxes are behind?
- You tell us the county and the tax account number.
- We pull the payoff. The tax office gives a figure with penalties and interest through a closing date.
- We send a written offer within 24 hours of a complete request.
- The title company pays the taxes from the proceeds and any other liens, and sends you the balance.
Closing is typically 7 to 30 days, or on the date you choose. There are no commissions or fees. We buy for cash, or on owner-financed terms when a deal calls for it, and each deal has its own lenders, financials and offers.
What mistakes should you avoid?
- Ignoring notices. They get more serious, and the fees grow.
- Paying a “tax relief” company up front. Be careful with anyone who asks for money before doing anything.
- Changing the land use without checking rollback tax.
- Waiting for a better market while the penalties run.
- Signing with anyone who will not put the offer in writing.
How can we help?
If the taxes are the problem, selling can be the cleanest fix. Request your offer, book a call or read how it works.
Cash is simple. Some land needs more than that.
We buy for cash when that works. When a deal needs it, we get creative: owner-financed purchases, notes, partnerships and development.
Cash offer
A written offer within 24 hours. Closing typically takes 7 to 30 days, or on the date you choose. No commissions or fees.
Owner financing and notes
Want a down payment and payments over time? We can buy your land on owner-financed terms, and we can talk about buying an owner-financed note you hold.
Partnerships and entitlement
Land with development potential? We partner with landowners, buy entitled land and take properties through entitlement.
There is no one-size-fits-all land deal. Each one can have its own lenders, financials and offers, so contact us for details.
Tell us how you want to be paid How owner financing works → Investor? Register for deals →
Common questions
When are Texas property taxes due?
Property taxes are due by January 31 for the prior year. They become delinquent on February 1, when penalties and interest start.
What happens if I do not pay on time?
Penalties start at 6 percent in February and rise each month, and interest adds 1 percent per month. After July 1 a collection attorney fee of up to 20 percent can be added, and the taxing units can sue to foreclose their lien.
Can I lower the tax bill on my land?
Sometimes. You can protest the appraised value, usually by May 15 or 30 days after the notice. Land used for farming, ranching, timber or wildlife management may qualify for a special valuation that taxes it on productive value instead of market value.
Can I set up a payment plan?
Some tax offices allow payment agreements, and the rules differ by situation. Ask the tax assessor-collector for your county before the account goes to a collection attorney.
Is selling the land better than losing it to a tax sale?
Usually yes. In a sale you control the price, the taxes are paid from the proceeds and you keep the difference. In a tax sale you lose control, and the land can sell for less than it is worth.
How fast can I sell to pay the taxes?
We send a written offer within 24 hours of a complete request. Closing is typically 7 to 30 days with clean title, or on the date you choose.
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