What Happens After I No Longer Qualify For A Property Tax Deferral In Texas
A property tax deferral is a useful tool available to qualifying Texans that allows them to delay paying their property taxes to the government. However, there are situations where taxpayers who once qualified will no longer be able to defer their taxes. When that happens, the deferred balance, including interest, becomes due, and there is a limited window to bring the account current before it becomes delinquent.
Here, we’ll look into what a tax deferral is, who can get one, and what happens when you no longer qualify. We’ll also discuss what you can do when the deferred tax and accrued interest are due.
If your deferred taxes are coming due and you’re unsure how to cover them, AFIC has options available that can help you avoid penalties and keep your account in good standing.
Understanding Property Tax Deferral in Texas
A property tax deferral in Texas allows eligible homeowners to defer paying property taxes on their homestead, delaying the due date without incurring standard delinquency penalties. However, this is not an exemption—property taxes are still owed, interest continues to accrue, and a tax lien remains on the property until repayment.
Under Texas law, a deferral is typically available to individuals 65 or older, those with a disability, certain veterans, and their surviving spouses. When you file a deferral affidavit with your local appraisal district, it places a temporary hold on the collection of property taxes, helping protect against actions like foreclosure or a tax sale during the deferral period.
Once the deferral period ends, the full balance, including accumulated interest, becomes due.
Who Is Eligible for a Property Tax Deferral?
A property owner who qualifies for a deferral under the Texas Property Tax Code must meet specific criteria. Generally, homeowners 65 or older, individuals with disabilities, and certain veterans may obtain a deferral if they occupy the property as their primary residence (residence homestead) and file the appropriate form with their central appraisal district.
Eligibility may also extend to surviving spouses under certain conditions. If the original qualifying individual passes away, the deferral can transfer to the person’s surviving spouse, provided they’re 55 or older, own the property, and lived there at the time of death. Additionally, personnel serving during a war or national emergency outside the state of Texas may also qualify for deferred tax treatment.
Homeowners with a mortgage should review their deed of trust and confirm with their mortgage company, as some agreements may restrict or complicate deferral eligibility.
When Will I No Longer Qualify for a Deferral?
There are different circumstances in which you will no longer qualify for a deferral:
- If you no longer occupy the home as your principal residence
- The qualifying owner passes away, and the surviving spouse does not meet the requirements to continue the deferral
- A change in mortgage or lender requirements results in taxes needing to be paid
- The property is sold
After your deferral ends, all outstanding property taxes and accrued interest must typically be paid within 180 days. If not paid within that timeframe, the balance becomes delinquent.
What Are My Options After the Deferral Ends?
Because property taxes may have been deferred for several years, the total amount due can be significant.
If the property is being sold, the outstanding taxes are often paid from the proceeds at closing. In cases involving an estate, it’s important that ownership is clearly established so the property can be sold or refinanced without delays.
If you are unable to pay the full balance, a property tax loan can help you bring the account current and avoid further penalties or collection actions. Property tax loans may offer:
- Affordable monthly payment plans
- Flexible repayment terms
- Avoidance of foreclosure
- Relief from escalating penalties and fees
- Peace of mind knowing the tax obligation has been resolved
Talk to AFIC About Your Property Tax Options
Founded in 1946, American Finance & Investment Co., Inc. (AFIC) began by serving the financial needs of El Paso and has grown into one of the leading property tax lenders in Texas, with a complaint-free track record spanning over 65 years with the Better Business Bureau.
We offer our clients an affordable, hassle-free way to ensure that your account with the local government tax office is paid in full, and will work out a manageable repayment plan for you.
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 property 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 one percent
- 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 Texas property tax deferrals or our property tax loans, please contact our experienced team at AFIC today.
Frequently Asked Questions
When a property tax deferral ends, all deferred taxes and accrued interest become due in full. Texas law generally provides property owners with a 180-day period to settle the outstanding balance before it is considered delinquent. Once delinquent, penalties and collection actions, including foreclosure, may begin.
Yes, in certain circumstances. Under Texas law, a deferral can transfer to a surviving spouse if they are 55 or older, own the property, and were living there at the time of the qualifying owner’s death. All conditions must be met for the deferral to continue.
Yes. AFIC offers property tax loans with no credit check and no money down. If your deferred taxes and accrued interest have become due and you are unable to pay the full balance, AFIC can pay the outstanding amount directly to the county tax office and work with you on a manageable repayment plan.
No. AFIC does not perform credit checks. Qualification is based on the property rather than your credit history, which allows homeowners with large deferred tax balances to explore their options regardless of their credit situation.
For qualifying properties, approvals can happen quickly, sometimes within 24 hours. Once approved, AFIC pays the outstanding taxes directly to the county tax office, helping stop additional penalties and interest from accruing and bringing your account back into good standing.
