Deferral of Taxes - Homestead Property Only
(Modified in part from Taxpayer’s Rights, Remedies & Responsibilities
as published by the Texas Comptroller of Public Accounts.)
When you allow your property taxes to become delinquent, the Tax Assessor-Collector’s
Office may file a delinquent tax lawsuit against you and attach a tax lien to your property,
allowing them to foreclose on the lien and seize your property. The property would be auctioned
for sale and the proceeds used to pay the delinquent taxes. Under certain circumstances,
you may abate a delinquent tax lawsuit by filing a tax deferral affidavit. The deferral is for all
delinquent property taxes for the taxing entities that tax your home.
You may file a tax deferral if the following applies to you:
Over-65 Tax Deferral
If you are a homeowner age 65 or older, you may defer or postpone paying any delinquent
property taxes on your home for as long as you own and live in it. To postpone your tax
payments, you must file a tax deferral affidavit with the Appraisal District.
This tax deferral only postpones paying your taxes. It does not cancel them. Interest is added
at the rate of 8 percent per year. Once you no longer own your home or live in it, past taxes
and interest become due. Any penalty and interest that was due on the tax bill for the home
before the tax deferral will remain on the property and also become due when the tax deferral
ends
Deferred Collection of Taxes on Appreciating Residence Homestead
If you are a homeowner, you may postpone paying the delinquent property taxes imposed
on that portion of the appraised value of the property you own and occupy as your residence
homestead that exceeds:
- 105 percent of the appraised value of the property for the preceding year; plus
- the appraised value of any new improvements made to the property. New improvements
mean any additions made to the property that increase its appraised value. The term does
not include ordinary maintenance of an existing structure or the grounds or another feature
of the property.
For example, the appraised value of your residence homestead was $50,000 in the preceding
tax year, and the appraised value increased to $65,000 this year. Included in this increase
was $5,000 attributable to additional living area that was added to the residence. You may
defer paying the taxes on any increase exceeding 105 percent of the appraised value in the
preceding tax year ($50,000 X 105% = $52,500) plus the appraised value of the new
improvements ($5,000). Therefore, you may postpone paying the taxes on any increase
in the appraised value exceeding $57,500, being $7,500 ($65,000 - $57,500 = $7,500).
To obtain a deferral you must file a tax deferral affidavit with the Appraisal District. You cannot
obtain a deferral if you allow that portion of your taxes that do not qualify for the deferral to become
delinquent.
This deferral only postpones paying a portion of your taxes, and interest is added at the rate
of 8 percent per year to the unpaid balance. Once you no longer own your home or live in it,
past taxes and interest become due.