Texas Property Tax Deferral: What to Do When It Ends
A property tax deferral is a useful tool available to qualifying Texans that can be used to defer or delay when they have to pay their property taxes to the government. But there are circumstances in which taxpayers who once qualified will no longer be able to defer their taxes. Here we look into what a tax deferral is, who can get one, and what happens when you no longer qualify for a deferral. We will also discuss what you can do when the deferred tax and accrued interest are due for payment.
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 owed will still accrue interest, 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. It’s important to understand that interest will continue to accumulate, and when the deferral period ends, the total property taxes become due. While deferrals provide property tax relief, they are not permanent solutions. AFIC helps homeowners transition smoothly once deferrals expire, offering fast, no-credit-check property tax loan options that avoid penalties and interest and keep accounts in good standing.
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 also extends to surviving spouses under certain conditions. If the original qualifying individual passes away, the deferral passes to the person’s surviving spouse, provided the spouse is 55 or older, owns the property, and resided 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 subject to a mortgage should review their deed of trust and confirm with their mortgage company, as some agreements may restrict or complicate deferral eligibility.
At AFIC, we guide clients through alternatives when deferrals are no longer available or applicable, especially when property tax obligations become due. Our loan services offer peace of mind through predictable, manageable monthly payments—without credit checks or upfront costs.
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.
- If the owner passes away,however the deferral can transfer to the surviving spouse if they are 55 or older, own the residence, and lived there at the time of death.
- In some cases, when people with a mortgage switch lenders, they have found, while they qualify for the deferral under the law, the new lender, nevertheless, requires the superior claim against the property, the property taxes to be paid, l and the property owner finds themselves owing thousands in back taxes.
After your deferral ends, you must pay all outstanding taxes and interest within 180 days. Immediately after the deadline, if there is still a due balance, the amount owed will be classified as delinquent property tax and taxing authorities may take further steps such as penalties and foreclosure.
What Are My Options After the Deferral Ends?
Because you have been deferring your property taxes, potentially for years, you or your estate can end up with a tax bill of thousands of dollars. However, if you no longer qualify due to your home’s sale, you may be able to pay the taxes with the proceeds of the sale. In such a case, it is important you have a valid will that is probated so your heirs don’t have fractured ownership of your home, preventing borrowing against it or selling it.
But if you find yourself unable to pay the outstanding taxes, utilizing a property tax loan can help you get this debt under control and save you thousands in interest and penalties. Property tax loans provide the following benefits to homeowners:
- Affordable monthly payment plans
- Flexible repayment terms
- Avoid foreclosure
- Stops the accumulation of penalties and fees
- Relief and peace of mind
About AFIC
Founded in 1946, American Finance & Investment Co., Inc. (AFIC) started by serving the financial needs of El Paso and has since grown to become one of the top property tax lenders in the state of Texas, with a complaint-free track record for 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 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 Texas property tax deferrals or our property tax loans, please contact our experienced team at AFIC today.
