Behind on Property Taxes in Dallas–Fort Worth? How to Avoid a Tax Sale

Property taxes are one of the biggest costs of owning a home in Texas, and in Dallas–Fort Worth, rising appraisals have pushed many bills up fast. If you've fallen behind, received a delinquent tax notice, or been told a tax lawsuit has been filed, it's easy to feel stuck. In Texas, unpaid property taxes can eventually lead to the county selling your home at a tax sale, even if your mortgage is paid off.

The good news is that Texas law offers several ways to lower your bill, spread out payments, or put collection on hold, especially for homeowners 65 and older and those with disabilities. This guide covers those options for homeowners in Dallas, Fort Worth, Arlington, Plano, Garland, Denton, and anywhere in Dallas, Tarrant, Collin, Denton, or Johnson County.

How Delinquent Property Taxes Grow in Texas

Texas property taxes are usually due by January 31 of the year after they're billed. Starting February 1, unpaid taxes are delinquent and penalties and interest begin to add up quickly:

• February 1: a 6% penalty plus 1% interest is added.
• Each following month: the penalty rises another 1% (up to 12%), and interest keeps adding 1% per month.
• July 1: the account can be turned over to a collection attorney, and an additional collection fee of up to 20% may be added.

The Texas Tax Foreclosure Timeline

1. Delinquency. Taxes go unpaid after January 31, and penalties and interest begin.
2. Collection. The tax office or its collection law firm sends notices and calls.
3. Tax lawsuit. The taxing units file suit in district court. Unlike most mortgage foreclosures, tax foreclosures go through the courts, and you'll be served with the lawsuit.
4. Judgment and sale. If the court rules for the taxing units, the property can be sold at a sheriff's or constable's sale, typically on the first Tuesday of the month.
5. Redemption period. Texas gives owners a limited right to buy the property back after a tax sale, generally 2 years for a homestead (or agricultural land) and 180 days for other property. You'll have to pay what the buyer paid, plus a premium of 25% to 50% and certain costs.

A tax lawsuit can take months or longer to reach a sale, but legal fees and court costs are added along the way. Don't ignore a lawsuit. Respond to it, and talk to a Texas attorney if you need help.

8 Ways to Deal With Property Taxes You Can't Pay

1. Make Sure You Have Every Exemption You Qualify For

The homestead exemption can take a big bite out of your bill and caps how much your home's taxable value can rise each year (10% for a homestead). If you're 65 or older or disabled, you may qualify for additional exemptions and a tax ceiling that freezes your school taxes. Disabled veterans may qualify for partial or full exemptions. Check your appraisal district account (Dallas CAD, Tarrant AD, Collin CAD, Denton CAD, or Johnson CAD). Missing exemptions are common, and you may be able to apply them retroactively.

2. Protest Your Appraisal

If the appraisal district has your home valued too high, you can protest it. The deadline is usually May 15, or 30 days after your notice of appraised value was delivered, whichever is later. Bring photos of needed repairs and comparable sales. Many homeowners get a reduction at the informal meeting.

3. Defer Your Taxes (65+, Disabled, or Disabled Veterans)

If you're 65 or older, disabled, or a qualifying disabled veteran, Texas lets you defer property taxes on your homestead for as long as you own and live in it. Once the deferral affidavit is filed, the taxing units generally can't foreclose, and instead of penalties, the deferred taxes build up at a reduced interest rate (currently 5% per year). The taxes come due after you no longer live in the home or it passes to your heirs. File the deferral affidavit with your appraisal district. It can be filed even after a tax lawsuit has started.

4. Pay in Installments

If you have a homestead exemption and you're 65 or older, disabled, or a disabled veteran, you can usually pay current taxes in four equal installments without penalty, as long as the first payment is made before the delinquency date and you notify the tax office.

5. Set Up a Payment Agreement on Delinquent Taxes

Most DFW county tax offices will set up an installment agreement on taxes that are already delinquent, often over 12 to 36 months. Call your county tax assessor-collector, or the collection firm named on your notice, and ask. Stay current on the agreement, because missing payments can restart collection.

6. Ask Your Mortgage Servicer About Escrow

If you have a mortgage, your lender may pay the delinquent taxes to protect its lien and then add them to your escrow account. Your monthly payment will go up, but it can spread the cost over 12 months or more. Ask your servicer about it before the tax office escalates.

7. Be Careful With Property Tax Loans

Texas allows licensed property tax lenders to pay your taxes in exchange for a lien on your home. They can stop collection quickly, but interest and fees can be high, and a tax lien can come ahead of your mortgage. Compare the full cost against a payment plan or deferral first.

8. Sell Before the Tax Sale

If the taxes, mortgage, and repairs add up to more than you can carry, selling lets you pay off the delinquent taxes at closing and keep your remaining equity, instead of losing the home at a tax sale. A direct cash sale can close in as little as 7–14 days, often before the next court date or sale date.

What to Watch Out For

• Don't ignore a tax lawsuit. If you don't respond, the court can enter a default judgment.
• Don't assume your mortgage covers it. If your loan isn't escrowed, or you've paid it off, the taxes are on you.
• Don't sign over your property to anyone offering to "take care of the taxes" until you understand the deal. Get the terms in writing.
• Don't miss the protest deadline. Once it passes, you're usually stuck with that year's value.

How Easy Sell DFW Can Help

We help DFW homeowners who are behind on property taxes every month, including owners of inherited homes, vacant houses, and paid-off properties. When you meet with one of our specialists, we'll:

• Look at what's owed and where you are in the collection or lawsuit process
• Talk through the options above, including the ones that let you keep your home
• Give you a no-obligation cash offer if selling makes sense, with the back taxes paid off at closing
• Buy as-is, cover the standard closing costs, and close on your timeline

There's no pressure. If an exemption, deferral, or payment plan solves your problem, we'll point you in that direction.

Frequently Asked Questions

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