Penalties and Interest
Important: Please read all information below, regarding delinquent taxes as these rates are not applicable to every situation.
Each year, in September, the governing bodies of the local taxing units decide what services they will provide and how much money they will need. They adopt the unit budget and set the tax rate for the year that will provide the needed revenue.
Taxing units also have the authority to allow partial exemptions. These exemptions reduce the taxable value of qualifying properties. Homestead, Over Sixty-Five, and Disability exemptions are partial exemptions which can be granted on your principal place of residence. They can only be claimed on one piece of property in the state of Texas.
Taxes are calculated by subtracting the value of any exemptions, and the cap value if applicable, from the homestead value of the property and then adding any productivity or non-qualifying value. This result, the taxable value, is then multiplied by the tax rate per $100. The answer is then divided by 100 to arrive at the tax amount for the taxing unit. This process is repeated for each taxing unit.
Delinquent Tax Collection Rates
The following schedule provides penalty and interest rates for use in calculating the total amount of penalty and interest due on delinquent tax bills. The rates in this schedule do not apply to taxes paid in quarter payments, or to delinquent taxes in years where a successful rollback election was held. Value or exemption changes by the appraisal district may postpone the delinquency date.
Taxes not paid by January 31 will increase as follows:
If tax is paid in (MONTH) add: PENALTY + INTEREST = TOTAL PERCENTAGE (listed below)
February = 7%
March = 9%
April = 11%
May = 13%
June = 15%
July = 18%
Accounts not paid in full by June 30 of the year in which they become delinquent are referred to the delinquent tax attorneys for collection and incur an additional penalty equal to 20% of the total taxes, penalties and interest due. Any payment on the quarter payment plan that is not paid before the delinquency date for the installment accrues full penalty of 12% immediately, and begins to accrue interest at the rate of 1% per month until paid. Similarly, if the second half payment is not paid by June 30, the payment is delinquent. A 12% penalty is assessed on the unpaid tax as well as interest at the rate of 1% per month until paid.