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 and Disabled Persons Tax Deferral

If you are receiving the Over 65 or Disabled Persons homestead exemption, 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:

  1. 105 percent of the appraised value of the property for the preceding year; plus
  2. 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.