Note: BCP Real Estate is not a law firm and its employees/owners are not acting as your attorneys. The information contained on this website is provided for educational and informational purposes only and should not be construed as legal advice on any subject matter.
One of the reasons inherited tax problems feel overwhelming is that the balance rarely sits still. A bill that looked manageable a few years ago can swell into something far larger, and a lot of heirs don’t understand why until they see how the charges stack up. Here’s the general picture under Texas law.
Property taxes in Texas are typically due by January 31 and become delinquent February 1. As soon as that happens, the charges begin. In the first month of delinquency, a penalty of six percent is added, plus one percent interest, and the penalty keeps climbing each month it stays unpaid. By July 1 of that year, the penalty generally reaches a total of twelve percent, while interest continues to accrue at one percent for every month the tax remains unpaid, year after year. That interest doesn’t stop; it keeps building for as long as the balance sits there.
On top of that, once the taxing authorities turn the account over to their attorneys for collection, an additional collection fee, commonly up to twenty percent, can be added to cover attorney and court costs. So between escalating penalties, ongoing monthly interest, and a collection fee, an inherited property’s delinquent balance can grow at a pace that catches families completely off guard.
This is exactly why waiting is the costliest approach. The longer an heir property sits with unpaid taxes and no one clearly in charge, the more the number compounds. Whatever you decide to do, addressing it sooner keeps the balance smaller. Heirs can ask the tax office about exemptions or payment options, clear the title and respond through an attorney, or sell an inherited share before the total climbs further. Selling your portion takes the growing obligation off your plate along with any lawsuit attached to it.
A couple of questions we hear a lot:
Does the interest ever stop adding up? Not on its own. Interest continues to accrue each month the tax goes unpaid, which is why a balance left alone for years can end up far larger than the original taxes.
If the balance has gotten huge, is the property even worth keeping? Sometimes the answer is no, and that’s worth facing honestly. A buyer who works with heir property can look at the numbers with you, and selling your share may make more sense than chasing a balance that keeps growing.
If you’re looking to remove yourself from a lawsuit and get paid for your interest, no cost to you, call or text us at (469) 708-8003 for an offer today.
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