Paying Your Property Taxes in Texas: What Are Your Options
Paying property taxes in Texas does have its challenges, and there are several solutions if you cannot pay all the due taxes before January 31st. When your property tax is above $3,500, consider getting a property tax loan. Let’s look at the county payment options that might be available.
Payment Plan Options from the County
County Payment Plans offer several options, but they are quite restrictive. Terms are between 12 and 36 months, there is an annual 12% statutory interest, and in most cases the property must be your homestead. If you miss any payments on a county plan, statutory penalties, and collection costs may be applied retroactively.
Can You Pay Your Property Taxes in Installments?
Property taxes can be paid in four equal installments under specific circumstances. A written notice of intent must be given with the first payment, or the property taxes become delinquent, incurring penalties and interest.
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Over-65/ Disabled/ Disabled Veteran Installment Plans Individuals aged 65 years or older, persons with disabilities, disabled veterans, or their unmarried surviving spouses who qualify for an exemption under Tax Code Section 11.22 can pay in installments. Also, partially disabled veterans with homes donated by charitable organizations and their unmarried surviving spouses.
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Installment Plans for Properties in Disaster or Emergency Areas Property tax installment payments following a disaster or emergency may be available. Certain businesses, homeowners, other residential property owners, and certain small businesses with property damaged due to a disaster or emergency can apply for this option.
What Other Payment Arrangements Can Be Made Through the County
Numerous other payment arrangements can be made through the county besides those discussed above. What are the payment options?
- Partial Payments Partial payments are allowed by several local governments, including Travis County. Making the partial payment does not affect the date the tax becomes delinquent; the remaining portion still incurs penalties and interest.
-Deferral Deferred or delayed property tax payments have an annual interest of 5%, while penalties and interest do not accrue as long as the property is deferred. The following persons can apply to defer payment on their residence homestead.
- persons aged 65 or older or disabled
- persons who qualify for a disabled veterans exemption under Tax Code Section 11.22.
-Split Payments In some counties, you can split your property tax payments by paying one half by November 30 and the other half by June 30 without incurring penalty and interest, if allowed by the taxing unit’s governing body.
-Partial Payments/ Informal Payment Arrangements Can you pay property taxes monthly? Counties often have payment arrangements other than the standard ones, as is the case with Bexar County. They have a ten-month payment plan where equal payments are due beginning in October until July.
- Work Contracts Rarely used, work contracts allow persons 65 or older to perform a service for the taxing unit, or qualified individuals provide teaching services in lieu of paying property taxes.
Can You Pay Delinquent Property Taxes in Installments?
Some property tax collectors will allow you to pay delinquent property taxes in installments on a residence homestead. The terms are strict, and if you fail to make the payments, you may not enter into another agreement for two years.
Do You Get A Discount for Paying Your Property Taxes Early?
If allowed by a taxing unit, discounts are available for early payments, called a 3-2-1 discount. For example, if your tax is paid in October or earlier, you get a 3% discount, a 2% discount if the tax is paid in November, and a 1% discount if it is paid in December.
Is it Better to Get a Property Tax Loan?
Are your balances low, and are you sure you can make the payments? A county agreement is your more cost-effective option. When you need property tax help, consider American Finance & Investment Company, Inc. (AFIC). Our property tax loan payments are, in most cases, very manageable, and you can defer payments for up to 36 months.
Get Help Paying Your Property Taxes
AFIC can provide you with an instant quote by completing the form on our homepage. For qualifying properties, we can help you pay off your delinquent taxes and offer you the following benefits:
- Quick and completely online process
- No money down
- No credit check
- Free 30-day rate match
- Match competitors and beat their rate by 1%
- Avoid high penalties and foreclosure
We pride ourselves on finding solutions to suit the unique needs of our clients. If you would like to discuss our property tax loans, please contact our experienced team at AFIC today.
