Deferred Property Taxes in Texas: What You Need to Know

Deferred property taxes in Texas can be a lifesaver for homeowners and businesses facing financial difficulties.

You can defer your property taxes in Texas if you're experiencing financial hardship, such as a job loss or a medical emergency.

To qualify, you'll need to provide proof of financial hardship, which can include a letter from your employer, a doctor's note, or a bank statement showing reduced income.

The deadline to apply for deferral is usually in May of each year, so be sure to mark your calendar and act quickly.

In Texas, property tax deferment is a program that allows homeowners to postpone repaying their property taxes as long as they continue to reside in their home.

You can qualify for this program if you're over the age of 65 or meet the Social Security Administration's definition of disabled.

Homeowners who receive the Homestead Exemption can significantly reduce the portion of their home's appraised value that's subjected to property taxes.

To be eligible for a property tax deferment, you typically need to have applied for the Homestead Exemption first.

Any assessed penalties and fees on overdue property taxes will remain in effect, and an 8% per year interest rate will be assessed on the deferred amount.

You won't have to repay the deferred taxes until you sell your home or are no longer the homeowner.

To be eligible for deferred property taxes in Texas, you must own and occupy a residence homestead, which is a property not exceeding 20 acres. Homeowners must also be 65 years of age or older, or be a disabled or disabled veteran.

You'll need to check with your mortgage company to ensure the deferral doesn't violate the terms of your deed of trust. This is especially important if you have a mortgage on your home.

To qualify for property tax deferral, you must meet one of the following criteria: be at least 65 years old, own and occupy the property as your primary residence (homestead), or submit a request to delay your property tax payments to the local county office that evaluates property values.

Here are the key eligibility requirements:

You'll need to provide documentation, such as a Disability determination letter from the Social Security Administration or a Physician's Statement Verifying Eligibility for Disability Exemption, to support your application.

To apply for a property tax deferral in Texas, you'll need to gather the necessary documents and forms. You can typically find these forms at your county tax assessor collector's office.

You'll need to complete one or more of the following forms, including the Application for Homestead Exemptions, which is required by most county tax offices before filing for deferral. Other forms you may need include the Affidavit of Disability, Over-65 and Disabled Tax Deferral Affidavit, Tax Deferral Affidavit for Appreciating Residence Homestead Value, and Appraisal Increase Deferral Affidavit.

To start the process, you can visit your county tax assessor collector's office or check their website for the necessary forms. Make sure to review the eligibility requirements before applying, as you'll need to meet certain criteria to qualify for a deferral.

Here's a list of the required documentation you'll need to submit with your deferral application:

You can also obtain a deferral by filing a deferral affidavit with your county Central Appraisal District, which may offer forms and directions online.

To qualify for a residence homestead exemption in Texas, you must own and occupy the property as your principal residence. The owner must submit an affidavit to claim the exemption.

The deadline to file an application for an exemption is April 30, but you may file a late application up to two years after the delinquency date, which is normally February 1. This means you have a bit of wiggle room if you miss the initial deadline.

To apply for the exemption, you'll need to provide certain documents, including an Application for Residence Homestead Exemption (Form 50-114), Residence Homestead Exemption Affidavits, and a driver's license or personal ID certificate that matches the address on the property.

Here are some key documents you'll need to apply for a residence homestead exemption:

You may apply to the appraisal district the year you become age 65 or qualify for disability, and if your application is approved, you'll receive the exemption for the entire year in which you become age 65 or disabled and for subsequent years as long as you own a qualified residence homestead.

In Texas, the deferred property tax process is governed by specific rules.

Property owners can defer their taxes for up to 3 years if they are 65 or older or are disabled.

To qualify for deferral, you must have owned the property for at least 12 months.

Deferral payments are due on January 1st of the year following the deferral period, unless you sell the property or pass away.

Note that deferral does not eliminate the tax liability, but rather postpones it until later.

Interest on deferred taxes is a crucial aspect to consider. The state of Texas sets the interest rate, typically around 5% annually.

This interest is relatively low compared to other types of loans, but it's still important to factor it into the total amount owed. The interest accrues while the property taxes are deferred.

The accumulated interest becomes due when the property is sold or transferred, or the homeowner passes away. At this point, the total amount owed must be paid in full.

The deferral period ends when the person who qualified for the deferral no longer owns or occupies the property. This can happen if the house is sold or inherited.

You'll need to pay the deferred taxes and accrued interest in full on or before the 181st day after the property is no longer owned or occupied. If you don't, taxing units can proceed with collection actions, including foreclosure.

The entire amount becomes due on the 181st day, so it's essential to plan ahead and make arrangements to pay the taxes. If you have an outstanding mortgage, check with your mortgage company to ensure the deferral doesn't violate the terms of the deed of trust.

Deferred property taxes are due to be paid within 180 days after a house is sold or changes ownership. If you're left with a deferred property tax bill and can't pay it in full, you may need to seek assistance from a property tax lender.

In some cases, the sale price of the home can cover the deferred taxes. However, if you're inheriting a home with deferred taxes or want to avoid deferment altogether, it's best to consult with a professional who can guide you through the process.