Texas Property Tax Loans 2026
Compare APR ranges, county penalty math, and licensed Texas property tax lenders. Free no-obligation quote, all 254 counties.
What Texas property tax delinquency actually costs
If you do nothing, Texas Tax Code §33 layers penalties and interest on your bill the day after the February 1 delinquency date:
- February: 6% penalty + 1% interest = 7% added to your balance.
- March – June: penalty rises 1 percentage point per month, interest adds another 1% per month.
- July 1: a 12% penalty + 6 months of interest + an attorney collection fee of up to 20% kicks in — bringing the total to roughly 41–47% on top of the original tax bill.
- After July: interest continues to accrue at 1% per month indefinitely until paid or until the county forecloses on the tax lien.
A licensed property tax loan replaces that compounding penalty schedule with a fixed APR (typically 8–25%) and a known repayment plan. The lender pays the county, halts further penalties, and you repay over 12–120 months. See full comparison →
Quick estimator: monthly cost of a Texas property tax loan
The Texas delinquency penalty is fixed by statute: 6% in February rising 1 percentage point per month, plus 1% interest per month, plus an attorney collection fee of up to 20% added on July 1. Most homeowners face roughly 41-47% in penalties + interest by August of the year after delinquency, before any further compounding.
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How property tax lenders work in Texas
Texas is one of the few US states where private lenders can step into the shoes of the county tax collector. Under Texas Tax Code §32.06, a delinquent taxpayer can authorise a licensed lender to pay the bill on their behalf; the existing statutory tax lien is then assigned to the lender, who is repaid on agreed terms. Because the loan is secured by that lien — not by the borrower's general credit — most lenders do not run a traditional credit pull and there is no application fee or home inspection. Repayment is set up like a regular instalment loan: fixed APR, fixed monthly payment, terms from 12 to 120 months.
All Texas property tax lenders must hold a licence from the Office of Consumer Credit Commissioner (OCCC) under Texas Finance Code Chapter 351. Authorised fees are limited by §351.0021, and the consumer-protection waiver prohibition in §351.0022 prevents borrowers from waiving statutory rights. You can verify any lender's licence in the OCCC's public ALECS database before signing anything.
Texas county property tax loan pages
Per-county pages with median bill, effective rate, and county-specific delinquency timeline:
Frequently asked
What is a Texas property tax loan?
A Texas property tax loan is a loan made by a licensed property tax lender (regulated under Texas Finance Code Chapter 351) that pays your delinquent or current property tax bill directly to the county. The lender takes an assignment of the existing tax lien and you repay the lender on a fixed schedule, typically 12 to 120 months.
What is the typical APR?
Across the largest licensed Texas property tax lenders publishing public-facing material, observed APRs range from 8% to 25%, depending on lender, loan term, property type and loan amount. The legal rate cap is referenced via Texas Tax Code §32.06.
Should I take a loan or pay the county penalty?
Use the calculator above with your specific tax-owed amount. As a rule, a property tax loan at a market APR over 5+ years costs significantly less than the ~47% Y1 penalty + 1% per month thereafter that the county adds. The exception is if you can pay the bill outright within the first 1-2 months of delinquency, in which case it is usually cheaper to pay the county directly.
Are seniors and disabled homeowners eligible?
Yes, but you should consider the §33.06 deferral first. Texas homeowners 65 or older, or with a qualifying disability, may defer property taxes through the county tax office at no cost; the deferral postpones collection until the property is sold, with statutory interest of 5% per year. This is almost always cheaper than any property tax loan.
Will a property tax loan affect my credit?
Most Texas property tax lenders do not run a credit check because the loan is secured by the existing statutory tax lien on the property. The loan is not typically reported to consumer credit bureaus during normal performance. However, default can lead to foreclosure on the lien, so the loan should be treated like a mortgage.
Can I pay off the loan early?
Most Texas property tax lenders allow early payoff without prepayment penalties. Check the lender's Truth-in-Lending disclosure and the loan agreement before signing.
How are these lenders regulated?
Texas property tax lenders are licensed by the OCCC under Texas Finance Code Chapter 351 and Title 7 Chapter 89 of the Texas Administrative Code. The OCCC maintains a public ALECS licensee database. Authorised charges are governed by §351.0021, and §351.0022 prohibits waiver of statutory consumer protections.
Important disclosures
PropertyTaxRates.org is an independent data publisher. We are not a lender, broker, law firm or tax preparer. Submissions made on this page are routed to third-party Texas property tax lenders licensed by the OCCC under Finance Code Chapter 351. We may receive a referral fee or revenue share if a partner lender funds your loan. There is no cost to you for the quote, and the lender will provide a full Truth-in-Lending Act disclosure with the final APR, fees and total cost before any agreement is signed. Property tax loans should be considered carefully against alternatives — particularly the §33.06 deferral for seniors and disabled homeowners, county-installment plans, or paying the county directly. Read our Privacy Policy and Disclaimer for details.