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Texas Property Tax Relief on the Appreciating Home Value

  
  
  

Texas homeowners may postpone paying the current property taxes due on the appreciating value of their homes by taking advantage of a payment option called “residence homestead tax deferral” and filing a tax deferral affidavit at the County Appraisal District where their property is located.

Property Tax Reliefproperty tax loans

This tax relief allows homeowners to pay the property taxes on 105 percent of the preceding year’s appraised value of their homestead, plus the taxes on any new improvements to the homestead. The remaining taxes are postponed, but not cancelled, with interest accruing at 8 percent per year.

Once the homeowner files the tax deferral affidavit with the appraisal district, no taxing unit can start or continue a lawsuit for the deferred taxes as long as that person owns and lives in the home. When the homeowner no longer owns and lives in the home, the deferred taxes and interest become due. If the taxes are not paid, taxing units can then sue to collect the deferred taxes and interest. Additional penalties are possible.

For complete details about deferring taxes on the appreciating value of your home, contact the Texas County Appraisal District in which the property is located.  While this can be a beneficial program for property owners with increasing property values, the program only provides relief for the portion of the property taxes attributed to the increased value above the 105 percent of the preceding year and not your entire tax bill. 

Consider a Property Tax Loan

If you are having trouble paying your property taxes you might also consider a property tax loan.  Property tax loans are available for most properties located in Texas and can provide property owners a flexible low cost repayment option, which can often be significantly cheaper than tax assessor penalties and interest.       

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