How Texas property tax sales work
In Texas, tax-delinquent property is sold after a taxing unit forecloses its tax lien in court (or seizes the property under a tax warrant). The sheriff or constable sells it at public auction on the first Tuesday of the month, and the former owner can still redeem it for 2 years if it was a homestead, ag land or a mineral interest, or 180 days for other property.
How does a property end up at a Texas tax sale?
Unpaid property taxes create a lien. To turn that lien into a sale, the taxing unit (or the attorneys it hires) usually files a lawsuit and gets a judgment of foreclosure. The court then issues an order of sale. The Tax Code also allows a sale after property is seized under a tax warrant. Either way, the sale is run by "the officer charged with selling the property", which in practice is the sheriff or a constable.
When and where are the auctions?
Under Tax Code Section 34.01, tax sales follow the rules for sales under execution: at the county courthouse, or another public place near it designated by the commissioners court, between 10 a.m. and 4 p.m. on the first Tuesday of the month. If the first Tuesday is January 1 or July 4, the sale moves to the first Wednesday.
A commissioners court can also authorize online auctions. An online auction may open at any time but must close at 4 p.m. on the sale day. Whether a particular county sells in person or online is a local choice, so check with the county's tax office or the officer conducting the sale.
What is the minimum bid?
For property sold after a tax lien foreclosure, the officer needs a bid at least equal to the lesser of the total amount due under the judgment (taxes, penalties, interest, court costs and sale costs) or the value the court adjudged. If no bid reaches that amount, the property is "struck off" to the taxing unit that requested the sale.
What happens to struck-off property?
Under Section 34.05, a taxing unit that bought property at a tax sale can resell it later, either at a public sale run like an execution sale (or an online auction where authorized), or at a private sale. A private sale generally cannot be for less than the lesser of the market value in the judgment or the total amount of the judgments. These resales are a separate source of deals that some investors watch.
How does redemption work?
Buying at a Texas tax sale does not end the former owner's rights right away. Section 34.21 gives the owner a right to buy the property back:
| Property type | Redemption period | Premium paid to the buyer |
|---|---|---|
| Residence homestead, land designated for agricultural use, mineral interest | 2 years from the date the buyer's deed is filed | 25% in year one, 50% in year two |
| All other property | 180 days from the date the buyer's deed is filed | Up to 25% |
On top of the premium, the owner repays the bid amount, the deed recording fee, and taxes, penalties, interest and costs the buyer paid. For an investor, that means the money can come back with a premium, or the property can be kept after the period ends. Plan for both outcomes.
What to check before you bid
- Read the judgment and the sale notice for the exact property and the liens being foreclosed.
- Find out whether the property was a homestead or ag land, since that sets a 2-year redemption period.
- Ask a title company before the sale whether it will insure title after a tax sale and on what conditions.
- Drive by the property. Many tax-sale properties are occupied or need work, and you cannot inspect inside before bidding.
- Budget for holding costs during the redemption period and run the numbers with the fix and flip calculator.
Frequently asked questions
Does Texas sell tax lien certificates?
No. Texas sells the property itself (a tax deed sale) after a court judgment or tax warrant, subject to the former owner's right of redemption. It does not sell tax lien certificates the way some other states do.
When are Texas tax sales held?
On the first Tuesday of the month between 10 a.m. and 4 p.m., or the first Wednesday when the first Tuesday falls on January 1 or July 4. A county's commissioners court can authorize online auctions, which must end at 4 p.m. on that day.
How long is the redemption period after a Texas tax sale?
Two years from the date the purchaser's deed is filed for record if the property was a residence homestead, land designated for agricultural use, or a mineral interest. For other property it is 180 days.
What does the former owner pay to redeem?
When redeeming from a private buyer, the owner pays the amount the buyer bid, the deed recording fee, taxes, penalties, interest and costs the buyer paid, plus a redemption premium: 25% in the first year or 50% in the second year for homesteads, ag land and mineral interests, and no more than 25% for other property.
Sources
Related
How the Texas foreclosure process works
The Texas nonjudicial foreclosure process for investors: the 20-day notice to cure on homesteads, 21-day notice of sale, first-Tuesday courthouse auctions and what buyers should check.
How Texas sheriff and constable sales work
Texas sheriff and constable sales explained: what gets sold (execution and tax foreclosure sales), the first-Tuesday schedule, online auctions and a pre-bid checklist.
Fix and flip calculator
Estimate fix-and-flip profit, cash needed and ROI from purchase price, rehab budget, holding costs, loan terms and ARV, with a worked example.
Property tax calculator for Texas and Oklahoma
Estimate yearly property tax in Texas (rates per $100, $140,000 school homestead exemption) or Oklahoma (assessment ratio, $1,000 homestead exemption, millage).
County resources
Official links for the largest TX and OK counties