Penalties and Interest for Texas Past Due Property Taxes
If you are one of the many Texas property owners that received a delinquent property tax notice, you were probably shocked when you opened your notice and discovered the applied penalties. With bank savings rates hovering below 1%, you might wonder how tax assessors justify charging penalties of up to 48% in the first year. While you might think it is a conspiracy to funnel great income to the taxing units, it’s really nothing more than the tax assessors following the tax code. Texas Tax Code Section 33.01 and 33.07 establish the penalty and interest rates on delinquent real property taxes. The chart below lists the penalties, interest, and collection costs for Dallas County.
| Month | Penalty & Interest | Amount Due Based on $10,000 |
|---|---|---|
| February | 7% | $10,700 |
| March | 9% | $10,900 |
| April | 11% | $11,100 |
| May | 13% | $11,300 |
| June | 15% | $11,500 |
| July | 18% + 20% attorney fee | $14,160 |
| August | 19% + 20% attorney fee | $14,280 |
| September | 20% + 20% attorney fee | $14,400 |
| October | 21% + 20% attorney fee | $14,520 |
| November | 22% + 20% attorney fee | $14,640 |
| December | 23% + 20% attorney fee | $14,760 |
A few other things to note about paying property taxes and the related delinquency costs:
- Failure to receive a tax statement does not relieve the property owner of the tax, penalty or interest liability.
- The Tax Assessor/Collector does not have legal authority to forgive or waive any penalty or interest charges.
- Payments by mail are credited according to the U.S. Postmark (not meters). Those bearing postmarks past deadlines will incur full penalty and interest charges.
Consider a Property Tax Loan
If you cannot pay your property taxes, I recommend addressing the issue now. The longer you delay the more expensive it will become for you, with increasing penalties and interest. Despite the challenging economic environment, property tax loans are readily available with easy qualifications. If you’d like a no obligation consultation, please call one of our licensed loan officers at 877-776-7391.
