How to Sell Land With Back Taxes in Texas
Texas landowners with delinquent property taxes can sell their property at any time before a tax foreclosure sale. Under Texas Tax Code §34.21, a tax lien attaches to the property on January 1 of each year, but the property owner retains title until a court-ordered sale occurs. Delinquent taxes accumulate penalties and interest, but selling the property allows you to clear all liens from the proceeds.
Statutory framework
- 1
Tax Lien (Tax Code §32.01)
A tax lien attaches to property on January 1 to secure payment of property taxes for that year. The lien is superior to most other liens.
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Delinquent Tax Suit (Tax Code §33.41)
The taxing unit may file suit to collect delinquent taxes. The suit seeks a court order to foreclose the tax lien and order sale of the property.
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Tax Sale (Tax Code §34.21)
If the court orders foreclosure, the property is sold at a public sale on the first Tuesday of the month. The owner has a right of redemption for up to 2 years after the sale.
View statute →
Compare your options
| Option | Timeline | Cost | Control |
|---|---|---|---|
| Direct sale to land buyer | 2-4 weeks | No commissions or fees | You choose when to close |
| List with real estate agent | 6-12+ months | 5-6% commission | Agent manages process |
| Set up payment plan with county | Varies (12-36 months) | Penalties + interest continue | Keep property |
| Let tax foreclosure proceed | Forced sale | Lose property | No control |
Why selling is often better than a Texas tax foreclosure
Texas has some of the highest property tax rates in the country, and penalties accumulate quickly — up to 12% plus a potential 20% attorney collection fee. A tax foreclosure sale at auction typically yields far less than fair market value. Selling directly before foreclosure lets you clear the lien and preserve your equity.
Frequently asked questions
- Can I sell Texas land with unpaid property taxes?
- Yes. You can sell at any time before a tax foreclosure sale occurs. Outstanding taxes and penalties are paid from the sale proceeds at closing.
- How long before Texas forecloses on land for unpaid taxes?
- Texas taxing units can file suit after taxes become delinquent (typically February 1 of the following year). The timeline varies by county, but the process from suit to sale generally takes 6 months to over a year.
- What penalties apply to delinquent Texas property taxes?
- Texas imposes a 6% penalty on February 1, increasing monthly to 12% by July 1. After July 1, an additional 20% collection penalty may apply if the account is referred to a delinquent tax attorney.
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