Behind on Property Taxes in Dallas-Fort Worth? Your Options Before Tax Sale (2026)

If you're behind on property taxes in Dallas-Fort Worth, you're facing a crisis hitting DFW homeowners harder than almost anywhere else in the country. Dallas County property taxes have increased 32.7% since 2019 — the third-highest jump in any major U.S. county. The average DFW homeowner now pays $6,000-$8,000 per year in property taxes.

The penalties for falling behind are brutal. Texas adds penalties and interest starting February 1, and within five months your $6,000 tax bill can swell to nearly $8,500. After that, attorney collection fees pile on another 15-20%. Eventually, the county files a lawsuit and your property is sold at auction on the courthouse steps.

This guide explains the penalty timeline, the differences between Dallas and Tarrant counties, how to protest your assessment, and every option available to you — including selling your home to pay off the debt and keep your remaining equity.

DFW's Property Tax Crisis by the Numbers

Dallas-Fort Worth homeowners are being squeezed by property taxes like few other metros in America. Here's what the data shows:

• 32.7% increase from 2019-2024: Dallas County property taxes have risen by nearly a third in five years, ranking 3rd highest nationally among major counties
• $6,000-$8,000 per year: The average annual property tax bill for a DFW homeowner, depending on the municipality and school district
• Only 24% file protests: Despite average savings of $1,000+ for successful protests, roughly three-quarters of Dallas County homeowners never challenge their assessment
• #1 financial pain point: Property tax is the single biggest financial burden reported by DFW homeowners, outpacing mortgage costs, insurance, and utility bills

Texas has no state income tax, which means local governments rely heavily on property taxes to fund schools, roads, police, and fire departments. That funding model puts an outsized burden directly on homeowners — especially in rapidly appreciating metros like DFW.

Governor Abbott's 2026 Proposal

Governor Abbott has proposed eliminating school property taxes for Texas homeowners — shifting the funding to state revenue sources. Since school district taxes account for 40-55% of total bills, this would be significant. However, the proposal faces major legislative hurdles and is not law as of this writing. Do not factor this into your current financial planning.

How Fast Penalties Add Up in Texas

Texas property taxes are due on January 31. After that, penalties and interest begin accumulating on February 1 — and they escalate quickly. Here is the exact schedule:

Notice the June jump: the penalty leaps from 9% to 12% because a tax attorney is assigned to your account. Then after July 1, an additional 15-20% in attorney collection fees is added on top of everything else. That's how a $6,000 tax bill becomes $8,496 in just five months — a 41.6% increase.

Dallas County vs. Tarrant County: Key Differences

The DFW metroplex spans multiple counties, but most homeowners fall under either Dallas County or Tarrant County. While both follow Texas state tax law, there are important operational differences.

Dallas County Tax Office

• Office: Dallas County Tax Office, John Ames (Tax Assessor/Collector)
• Payment plans: Available for delinquent taxes, typically 12-36 months
• Appraisal district: Dallas Central Appraisal District (DCAD)
• Protest deadline: May 15 or 30 days after notice of appraised value (whichever is later)
• Tax sale location: Dallas County courthouse, first Tuesday of the month
• Phone: (214) 653-7811

Tarrant County Tax Assessor-Collector

• Office: Tarrant County Tax Assessor-Collector, Wendy Burgess
• Payment plans: Available, typically 12-36 months; must contact office directly to negotiate terms
• Appraisal district: Tarrant Appraisal District (TAD)
• Protest deadline: May 15 or 30 days after notice of appraised value (whichever is later)
• Tax sale location: Tarrant County courthouse, first Tuesday of the month
• Phone: (817) 884-1100

Key Similarities

Despite operating independently, both counties follow the same Texas Property Tax Code:

• Same penalty and interest schedule (the table above applies to both)
• Same February 1 delinquency date
• Same tax sale process (first Tuesday of every month at the courthouse)
• Same homestead exemption eligibility
• Same 2-year redemption period for homestead properties

How Tax Foreclosure Works in Texas

Texas has one of the most aggressive property tax collection systems in the country. Unlike mortgage foreclosure, which requires months of notices and waiting periods, tax foreclosure can move quickly once the county takes action.

The Tax Foreclosure Process

1. Taxes become delinquent (February 1): Penalties and interest begin accruing immediately
2. Attorney assigned (typically July 1): A tax attorney is engaged to collect on behalf of the taxing units; 15-20% collection fee is added
3. Demand letters sent: You receive notices from the tax attorney demanding payment of the full delinquent amount
4. Lawsuit filed: The taxing units (county, school district, city, etc.) file a joint lawsuit to foreclose on your property for unpaid taxes
5. Judgment entered: If you don't respond or can't pay, the court enters a judgment against the property
6. Property sold at auction: Your home is sold on the courthouse steps, first Tuesday of the month, to the highest bidder

What Happens at the Tax Sale

The minimum bid at a Texas tax sale equals the total amount owed — all delinquent taxes, penalties, interest, attorney fees, and court costs. If the property sells for more than the minimum bid, the excess (called "surplus") goes to the former homeowner. But in many cases, properties sell at or near the minimum bid, meaning the homeowner receives nothing.

The 2-Year Redemption Period

For homestead properties (your primary residence), Texas law gives you a 2-year right of redemption after the tax sale. During this window, you can reclaim your property by paying the purchaser:

• Year 1: The purchase price + 25% premium + certain costs
• Year 2: The purchase price + 50% premium + certain costs

For non-homestead properties (rentals, vacant land, commercial), the redemption period is only 180 days.

How to Protest Your DFW Property Tax Assessment

One of the most effective ways to reduce your property tax burden — and prevent future delinquency — is to protest your tax assessment. Yet only 24% of Dallas County homeowners do it, despite average savings of over $1,000 for successful protests.

Protest Deadline

You must file your protest by May 15 or 30 days after your notice of appraised value — whichever is later. This applies to both Dallas Central Appraisal District (DCAD) and Tarrant Appraisal District (TAD).

The Protest Process

1. File a Notice of Protest: Submit to your appraisal district online, by mail, or in person. You do not need a reason beyond "value is too high."
2. Informal hearing: Meet with an appraiser to review your evidence and try to reach an agreement. Most protests are resolved at this stage.
3. Appraisal Review Board (ARB): If you can't agree, your case goes before the ARB — a panel that reviews the evidence and makes a binding decision.
4. District court or arbitration: If the ARB ruling is still too high, you can appeal to district court or binding arbitration (for properties valued under $5 million).

Tips to Win Your Protest

• Gather comparable sales: Find 3-5 recent sales of similar homes in your neighborhood that sold for less than your assessed value
• Document property condition: Photos of damage, deferred maintenance, foundation issues, outdated systems, or anything that reduces your home's value
• Get an independent appraisal: Costs $300-$500 but carries significant weight at informal and ARB hearings
• Check for errors: Verify your property's square footage, bedroom/bathroom count, lot size, and other details in the appraisal district records — errors are common
• Show up: Simply attending your hearing significantly increases your chances of a reduction

Your Options When You're Behind on Taxes

If you already owe delinquent property taxes in Dallas-Fort Worth, here are your five options — ranked from least to most drastic:

Option 1: Set Up a Payment Plan with the County

Both Dallas County and Tarrant County offer payment plans for delinquent taxes, typically spanning 12 to 36 months. This allows you to spread the balance over time while keeping your property off the tax sale list.

• Pros: Keep your home, spread payments over time, property removed from tax sale while in compliance
• Cons: Penalties and interest continue to accrue on the unpaid balance; miss a payment and you're back to square one
• Best for: Homeowners who can commit to monthly payments and want to stay in the home

Option 2: File a Protest to Lower Future Bills

Protesting won't eliminate taxes you already owe, but it can significantly reduce future bills. With average savings of $1,000+ per year, a successful protest makes it easier to stay current going forward. See the protest section above for details.

Option 3: Apply for Exemptions

Many DFW homeowners miss out on exemptions they qualify for:

• Homestead exemption: Reduces your taxable value by at least $100,000 for school district taxes (as of 2024 legislative changes). You must apply — it's not automatic.
• Over-65 exemption: Additional exemption plus a school district tax freeze at the level when you turned 65 or obtained the exemption
• Disability exemption: Similar to the over-65 exemption for homeowners with qualifying disabilities
• Disabled veteran exemption: Partial or full exemption based on VA disability rating; 100% disabled veterans pay zero property tax on their homestead

Option 4: Sell the Property and Pay Off the Debt

If you can't afford to catch up, selling your home through a cash buyer marketplace protects your equity. Back taxes are paid from the sale proceeds at closing — you walk away with the rest. See the detailed breakdown below.

Option 5: Do Nothing (Worst Option)

Doing nothing is the most expensive choice you can make. Penalties and interest compound every month. Attorney fees get added. Eventually your property is sold at the courthouse steps for just the tax debt — and you lose all your equity. A $320,000 home can be sold for a $20,000 tax debt. Don't let this happen.

Selling Your Home to Pay Off Tax Debt

For many DFW homeowners who are significantly behind on property taxes, selling is the smartest financial decision. It stops the penalty clock, pays off the debt, and lets you walk away with your remaining equity.

How the Math Works: Marketplace Sale

Property Details:

• Home value: $320,000
• Existing mortgage: $140,000
• Delinquent taxes + penalties: $18,000

Marketplace Cash Sale (competing offers, 80-89% of value):

• Cash offer range: $255,000 - $285,000
• Pay off mortgage: -$140,000
• Pay off tax debt: -$18,000
• You keep: $97,000 - $127,000
• Closing costs to you: $0 (no commissions, no fees)
• Timeline: 7-14 days

How the Math Works: Traditional Sale

Same property, listed with a real estate agent:

• List price: $320,000
• Wait time: 3-4 months (more penalties accruing the entire time)
• Additional penalties during wait: ~$2,000-$4,000
• Agent commission (6%): -$19,200
• Closing costs: -$3,000
• Potential repairs/concessions: -$5,000-$10,000
• Pay off mortgage: -$140,000
• Pay off tax debt + new penalties: -$20,000-$22,000
• You keep: $121,800 - $132,800
• Timeline: 3-4 months (if the deal doesn't fall through)

The traditional route may yield slightly more in the best case — but you're gambling on months of additional penalties, a buyer whose financing could fall through, and repair demands. The marketplace route gives you certainty, speed, and no out-of-pocket costs.

When Selling Makes the Most Sense

• You owe multiple years of back taxes and can't realistically catch up
• Penalties are compounding faster than you can pay
• You've received attorney demand letters or a tax foreclosure lawsuit
• Your property is already listed for tax sale
• You'd rather walk away with $100,000+ in equity than risk losing it all at auction

Frequently Asked Questions

What happens if you don't pay property taxes in Dallas County?

Penalties and interest begin accruing on February 1 — starting at 7% and reaching 41.6% by July. After July 1, a tax attorney is assigned and collection fees of 15-20% are added. Eventually, the county files a lawsuit and your property is sold at tax foreclosure auction on the first Tuesday of the month at the Dallas County courthouse. You lose your property and potentially all your equity.

How long before Texas can foreclose for unpaid property taxes?

There is no fixed minimum waiting period. Texas law allows taxing units to file a tax foreclosure lawsuit as soon as taxes become delinquent on February 1. In practice, most counties begin filing lawsuits after July 1 when attorney collection fees are added. The entire process from delinquency to foreclosure sale can take as little as 6-12 months, depending on the county and court schedule.

Can I set up a payment plan for delinquent property taxes in DFW?

Yes. Both Dallas County and Tarrant County offer payment plans for delinquent property taxes, typically spanning 12 to 36 months. Contact your county tax office to apply. Keep in mind that penalties and interest continue to accrue on the unpaid balance during the payment plan, and you must stay current on your plan and all new tax bills to remain in good standing.

What is the property tax redemption period in Texas?

For homestead properties (your primary residence), Texas provides a 2-year redemption period after the tax foreclosure sale. During this period, you can reclaim your property by paying the purchase price plus 25% in the first year or 50% in the second year, along with certain costs. For non-homestead properties, the redemption period is only 180 days.

Can I sell my house if I owe back taxes in Dallas-Fort Worth?

Yes. You can sell your home even with delinquent property taxes. The back taxes, penalties, and interest are paid from the sale proceeds at closing through the title company. Many cash buyers in DFW specifically work with tax-delinquent properties and can close in 7-14 days. Selling before tax sale is the most effective way to protect your equity.

Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Property tax laws, penalties, and procedures vary by county and may change. Consult with a Texas real estate attorney, tax professional, or your county tax office for advice specific to your situation. Texas property tax law is governed by the Texas Property Tax Code.