What Is a Property Tax Deferral in Texas?
If you’re a Texas homeowner trying to manage rising property tax bills, especially while living on a fixed income, a property tax deferment may offer a path forward. But what is a tax deferral, and who qualifies? Many Texans hear the term “tax deferment” and assume it means their taxes are forgiven—but in reality, it simply means postponing payment under specific legal protections.
In this guide, we’ll explain how property tax deferral in Texas works, who qualifies, and what you need to know before applying.
What Is a Tax Deferment?
A tax deferment means delaying the payment of a tax debt to a later date, usually under special circumstances such as age, disability, or economic hardship. In the context of Texas property taxes, it allows qualified homeowners to pause payment of property tax bills without facing foreclosure or aggressive collections.
However, a deferral is not the same as forgiveness. Interest continues to accrue—typically at 8% annually—and the full deferred amount becomes due when the home is sold or changes ownership.
How Does Property Tax Deferment Work in Texas?
In Texas, certain homeowners—most commonly those aged 65 or older or who meet Social Security Administration disability requirements—may qualify for a property tax deferral on their homestead residence.
Here’s how it works:
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You file an affidavit with your local tax assessor’s office to defer property tax payments.
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As long as you own and live in the home, you’re protected from enforcement actions like foreclosure for those taxes.
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The tax amount (plus interest) becomes due within 180 days after you sell the home, move out, or pass away.
It’s a way to gain financial breathing room—particularly for seniors or homeowners with disabilities—without risking the loss of the home.
Who Qualifies for a Property Tax Deferral in Texas?
You may be eligible for a property tax deferral if you fall into one of the following categories:
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You are 65 years or older
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You are disabled as defined by the Social Security Administration
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You are a disabled veteran or the surviving spouse or child (under 18) of a disabled veteran
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You are the unmarried surviving spouse or child of a U.S. service member killed in the line of duty
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You’ve experienced a property value increase of more than 5% (with certain limitations)
If you’re applying under disability status, the SSA requires a medically determinable mental or physical impairment that prevents substantial gainful activity and is expected to last at least 12 months or result in death.
For homeowners applying under the 5% property appraisal increase rule, it’s important to note that deferrals apply only to the increased portion—particularly when no significant home improvements were made.
How to Apply for Property Tax Deferral
Applying for property tax def status in Texas involves submitting one or more of the following documents to your county tax assessor-collector’s office:
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Application for Homestead Exemptions
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Affidavit for Over-65 or Disabled Tax Deferral
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Disability Verification Statement (from a doctor or SSA)
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Appraisal Increase Deferral Affidavit (if applicable)
Your county tax office may have slight variations in forms or procedures, so it’s best to contact them directly or visit their website to confirm current requirements.
What Happens If You Can’t Repay Deferred Property Taxes?
In most cases, deferred taxes are paid off through the sale of the home. This happens when you move, sell the property, or pass it to someone else. However, there are situations where the value of the home may not cover the deferred balance.
If you inherit a home with property tax deferral, or you’re facing the end of a deferral period without the means to pay in full, you still have options. At Home Tax Solutions, we help homeowners:
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Refinance or repay deferred tax balances
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Transition from deferral to a payment plan or tax loan
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Navigate legal timelines and avoid foreclosure risk
Even if you’re nearing the 180-day repayment window, we can help you explore alternative financing options to protect your property.
Is Property Tax Deferment the Right Choice?
While property tax deferment can be a helpful tool for homeowners in certain situations, it’s not for everyone. Some key considerations include:
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Interest continues to accrue at 8% annually
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You may not qualify if the home isn’t your primary residence
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Deferred taxes must eventually be repaid
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You’ll still need to apply for the appropriate homestead exemption first
If you’re unsure whether a tax deferral is your best option—or you’ve been denied—our team can help you review other solutions, including property tax loans that offer immediate payoff and flexible repayment.
Need Help with Property Tax Deferment in Texas?
At Home Tax Solutions, we assist Texas homeowners in understanding their options, completing necessary paperwork, and avoiding costly mistakes when applying for deferral or choosing an alternative path.
Whether you qualify for a deferral or need help repaying deferred taxes, we’re here to guide you. With five offices across the state and a team that knows the Texas tax system inside and out, we’ll help you make the most informed decision possible.
Have questions? Fill out our short online form or give us a call. We’re here to help you stay in your home and achieve long-term peace of mind.
