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Behind On Property Taxes? You Have More Options Than You Think.

Texas tax penalties climb to a 12% cap by July, interest keeps adding 1% every month with no cap, and attorney collection can add up to 20% on top. Eventually the taxing units can sue and force a sale. But you still have real choices. You can set up a payment plan or a senior or disabled deferral, or you can sell with the back taxes paid out of your proceeds at closing. I'm James Konvalinka, a licensed Texas real estate agent, and I'll walk you through each one with real numbers.

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Real homes we've renovated & sold Completed exterior of the McGregor renovation in South Austin
90+ real-estate transactions Active Austin investors Licensed Texas agent #831102 MODUS Real Estate

Your Real Options

Three Ways This Goes. Doing Nothing Is One of Them.

1

Work With the Tax Office

County tax offices offer installment payment plans. For your homestead, Texas law generally requires them to offer one if you ask, though eligibility rules apply. For example, you usually can't get a new plan within 24 months of a prior one. And if you're 65 or older, disabled, or a qualifying disabled veteran, Texas law lets you defer collection on your homestead while you live there. You get the deferral by filing an affidavit with your county appraisal district, and the tax office can point you there. Interest still accrues on a deferral, but the pressure stops. For plenty of homeowners this is the right answer, and it starts with one phone call to the tax office, not to me.

2

Sell and Clear the Taxes at Closing

You don't need cash to pay the taxes first. The back taxes, penalties, and interest come out of your sale proceeds at closing, and you keep what's left after your mortgage and closing costs. I'll show you two real numbers side by side: what you'd net from a cash as-is sale, and what you'd net listing it on the open market. You pick. If a lawsuit has been filed or a sale date is already scheduled, timing is tight. Talk to a Texas attorney immediately.

3

Do Nothing

This is also a choice, and it's the expensive one. Penalties climb to a 12% cap, interest keeps adding 1% every month with no cap, collection attorneys can add up to 20% on top, and the taxing units can sue and sell the house at a tax sale. Nobody wins that version except the people collecting the penalties.

The Clock

The Clock Is Real. So Is Your Equity.

Here's how tax delinquency actually unfolds in Texas, and the facts that still give you leverage. This is general information, not legal or tax advice. For the exact figures on your account, call your county tax office, and talk to a Texas attorney before making legal decisions.

February 1: Officially Delinquent

Texas property taxes are due January 31. On February 1 the unpaid balance becomes delinquent, and penalties and interest start immediately.

Every Month It Gets Worse

Penalties climb to a 12% cap by July, interest keeps adding 1% every month with no cap, and attorney collection can add up to 20% on top. The balance only moves in one direction, which is why waiting is the one strategy that never works.

Around July 1: Attorneys Take Over

Most taxing units hand delinquent accounts to collection attorneys, typically July 1, and an additional penalty of up to 20% can be added on top. A lawsuit can technically come any time after delinquency, and once collection attorneys are involved it becomes far more likely.

Your Equity Usually Dwarfs the Debt

In Travis and Williamson counties, back-tax bills are often a few thousand dollars against a house worth hundreds of thousands. A tax problem is almost never a whole-house problem.

Taxes Are Paid at Closing, Not From Your Pocket

In a typical sale with equity, the title company pays the taxing units directly out of your proceeds at closing. You don't come up with the cash up front.

Verify Me Before You Trust Me

Look up James Konvalinka on the TREC license lookup, license #831102, sponsored by MODUS Real Estate. If someone offering to help won't show you a license, that tells you something.

Real Projects

Real homes. Real work. No stock photos.

These are houses this team actually bought, renovated, and sold in Austin. It matters here for one reason: when someone tells you a house needs $60,000 of work, you want that coming from people who have paid that bill themselves.

Completed exterior of the McGregor renovation in South Austin

2609 McGregor · South Austin

Leveled, re-roofed, rewired, replumbed. Bought as-is, closed July 2026.

Finished McGregor kitchen with gray cabinetry and stone counters

McGregor · Kitchen

Taken back to the studs and rebuilt.

Finished open living room at the McGregor project

McGregor · Living room

Reworked layout, new flooring throughout.

Finished primary bathroom with walk-in shower and double vanity

McGregor · Primary bath

Walk-in shower and a double vanity.

Completed exterior and backyard of the Westbury project in Georgetown

515 Westbury · Georgetown

Targeted fixes, not a teardown. Closed March 2026.

Finished Westbury kitchen with large island and updated fixtures

Westbury · Kitchen

New lighting, hardware and cabinet work.

Staged Westbury living room with fireplace and open layout

Westbury · Living room

Paint, flooring and staging.

Completed exterior of the Croftwood project in South Austin

7729 Croftwood · South Austin

Flooring, cabinetry, tile, tankless heater. Closed 2026.

Staged Croftwood living room with modern finishes

Croftwood · Living room

Move-in ready at handover.

James Konvalinka of Sell Smart Austin at a home entrance
James Konvalinka
Founder · Realtor® · Active Investor

I'm James Konvalinka, a licensed real estate agent in Texas and Wisconsin and an active Austin investor. Before you take my word for anything, verify me on TREC, license #831102, sponsored by MODUS Real Estate. When we talk, I'll show you what your house is worth as-is and what it could bring listed, with the math on paper. And if your best move is a payment plan with the tax office instead of selling, I'll tell you that.

90+ Transactions · 15+ Home Renovations

James Konvalinka, Licensed Texas Sales Agent #831102, sponsored by MODUS Real Estate. Every conversation comes with full disclosure and no obligation.

Before You Reach Out

Straight answers to the usual questions.

Can I sell my house if I owe back taxes in Texas?
Yes. The back taxes, penalties, and interest are paid out of your sale proceeds at closing, and the title company sends that money straight to the taxing units. As long as the house is worth more than what's owed against it, the debt gets cleared and you keep what's left after your mortgage and closing costs.
Do I need cash to pay off the taxes before I can sell?
No, and this is the part most homeowners don't know. You pay nothing up front. The tax bill is settled at closing from the proceeds of the sale, the same way a mortgage payoff works.
I'm over 65 and behind on my property taxes. What are my options?
Texas Tax Code 33.06 lets homeowners who are 65 or older, disabled, or a qualifying disabled veteran defer property tax collection on their homestead. Collection is postponed while the deferral is active, though interest keeps accruing. You get it by filing a deferral affidavit with your county appraisal district (the tax office can point you there). Look into that before you talk to anyone about selling, including me.
How fast do penalties grow on delinquent property taxes in Texas?
Fast. Taxes become delinquent February 1, penalties climb to a 12% cap by July, and interest keeps adding 1% every month with no cap. When collection attorneys take over, typically around July 1, an additional penalty of up to 20% can be tacked on. That's why deciding something, even a simple payment plan, beats deciding nothing.
How much does it cost to sell a house with back taxes in Texas?
Talking to me costs nothing and comes with no obligation. If you take a cash as-is offer there are no commissions, and I'll show you every closing cost on paper before you sign anything. If you list with me, the commission comes out of proceeds at closing like any normal sale. And if your best move is a payment plan with the tax office, I'll tell you that for free too.

Start Here

One address. We take it from there.

Tell us where the property is and how to reach you. You don't need photos, a repair list, or your tax statements to start. James will go look at it and come back with a written number within 24 hours. No pressure and no obligation.

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