Key Takeaways
- Tax rates nearly 3x the national average: Harris County effective tax rates exceed 2.5% — nearly triple the national average of 0.90%
- Housing costs have doubled: Monthly Houston housing costs rose from $545 to $1,146 over the past decade
- Penalties compound brutally: Texas tax penalties reach 41.6% within 5 months of delinquency; additional attorney fees pile on after July 1
- HCAD appraisals are often wrong: Harris County Appraisal District mass appraisals are inaccurate for 40%+ of properties — protest and save $1,000+
- Selling preserves equity: Selling through a marketplace preserves equity better than waiting for tax foreclosure
Houston homeowners are being crushed by some of the highest property taxes in the country. Harris County's effective tax rate exceeds 2.5% — nearly three times the national average of 0.90%. On the median Houston home valued at $322,000, that translates to roughly $8,050 per year in property taxes alone. That is $671 every month before you pay a dime toward your mortgage, insurance, or maintenance.
If you are struggling to keep up, you are not alone. Monthly housing costs for Houston homeowners have doubled over the past decade, climbing from $545 in 2014 to $1,146 in 2024. Harris County was hit with a 25% property tax hike that pushed thousands of homeowners to the breaking point. And Texas has no state income tax — which sounds great until you realize the state compensates with some of the highest property taxes in the nation.
This guide breaks down the numbers, explains how penalties escalate, shows you how to protest your HCAD assessment, and walks through every option available when you cannot afford to stay — including selling your home to protect what equity you have left.
Houston's Property Tax Crisis by the Numbers
Houston's property tax burden is staggering by any national standard. Here is what homeowners are dealing with in 2026:
- Effective tax rate above 2.5%: Harris County's combined effective property tax rate consistently exceeds 2.5%, placing it among the highest in the nation — nearly three times the national average of 0.90%
- $8,050 per year on the median home: With a median home value of $322,000, the average Houston homeowner pays approximately $8,050 annually in property taxes — that is $671 per month just in taxes
- Housing costs doubled in a decade: Total monthly housing costs for Houston homeowners climbed from $545 in 2014 to $1,146 in 2024, driven primarily by property tax and insurance increases
- 25% tax hike in Harris County: Harris County property taxes surged 25% in recent years, outpacing wage growth and forcing many longtime homeowners to reconsider whether they can afford to stay
Texas has no state income tax. That might sound like a financial advantage, but it is not for homeowners. The state compensates by placing an outsized burden on property owners to fund schools, roads, police, fire departments, and local infrastructure. Texas consistently ranks among the top five states nationally for property tax burden, and Houston sits at the epicenter.
Governor Abbott's 2026 School Property Tax Proposal
Governor Abbott has proposed eliminating school property taxes entirely for Texas homeowners, shifting funding to state-level revenue sources. Since school district taxes typically account for 40-55% of total property tax bills, this would represent major relief for Houston homeowners — potentially reducing bills by $3,200-$4,400 per year. However, the proposal faces significant legislative hurdles and is not law as of this writing. Do not factor this into your current financial planning or delay action based on this proposal.
Harris County vs. Fort Bend vs. Montgomery: Tax Rate Breakdown
The greater Houston metro spans multiple counties, each with different effective tax rates. Where your property sits matters enormously. Here is how the major Houston-area counties compare:
| County | Effective Rate | Median Home Value | Annual Tax |
|---|---|---|---|
| Harris County | 2.50%+ | $322,000 | $8,050+ |
| Fort Bend County | ~1.95% | $345,000 | $6,728 |
| Montgomery County | 1.83% | $310,000 | $5,673 |
| Brazoria County | ~1.53% | $275,000 | $4,208 |
| Galveston County | Varies widely | $265,000 | $4,900-$6,600 |
Harris County carries the heaviest burden by a significant margin. Fort Bend County (Sugar Land area) comes in under 2%, offering meaningful savings despite higher home values. Montgomery County (The Woodlands) sits at 1.83%. Brazoria County south of Houston is the most affordable at roughly 1.53%. Galveston County varies widely due to coastal premium factors and special flood district assessments.
If you own property in Harris County and are struggling with taxes, it is worth understanding just how much more you are paying compared to neighboring counties. A $322,000 home in Harris County costs you $2,377 more per year in taxes than the same-value home would in Brazoria County. Over five years, that is nearly $12,000.
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 with alarming speed. Here is the exact schedule applied to a Houston homeowner's $8,050 tax bill:
| Month | Penalty | Interest | Total Added | $8,050 Bill Becomes |
|---|---|---|---|---|
| February | 6% | 1% | 7% | $8,614 |
| March | 7% | 2% | 9% | $8,775 |
| April | 8% | 3% | 11% | $8,936 |
| May | 9% | 4% | 13% | $9,097 |
| June | 12% | 5% | 17% | $9,419 |
| July 1+ | 12% | 5%+ | 17% + attorney fees | $11,393+ |
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 is how an $8,050 tax bill becomes $11,393 in just five months — a 41.6% increase.
Tax foreclosure sales in Harris County occur the first Tuesday of every month at the courthouse. Once a judgment is entered, your home is auctioned to the highest bidder. The minimum bid covers only the tax debt — meaning you can lose a $322,000 home for a $15,000 tax bill and walk away with nothing.
Your $8,050 Houston property tax bill becomes $11,393 in just 5 months — a 41.6% increase from penalties and interest alone. After July 1, attorney collection fees of 15-20% pile on top. Every single month you wait costs you hundreds of dollars. If you are going to act — whether that means protesting, applying for a payment plan, or selling — act now. The penalty clock does not pause for indecision.
How to Protest Your HCAD Property Tax Assessment
The Harris County Appraisal District (HCAD) uses mass appraisal methods to value over 1.8 million properties. The problem? Those mass appraisals are inaccurate for more than 40% of properties. HCAD frequently overvalues homes by lumping together neighborhoods, ignoring property condition, and relying on outdated data.
Protesting your HCAD assessment is one of the most effective tools you have. Average savings exceed $1,000 per year for successful protests — and even if you plan to sell, a lower appraisal reduces your tax burden in the interim.
Protest Deadline
You must file your protest by May 15 or 30 days after your notice of appraised value — whichever is later. Mark your calendar. Missing this deadline means you are locked into HCAD's number for the entire year.
The Two-Step Protest Process
- Informal hearing: You meet with an HCAD appraiser to present your evidence and try to reach a negotiated value. Most protests are resolved at this stage — appraisers have authority to reduce values and are often willing to compromise when presented with solid data.
- Appraisal Review Board (ARB): If the informal hearing does not produce an acceptable result, your case goes before the ARB — a panel of citizens who review the evidence and make a binding decision. You present your case, HCAD presents theirs, and the board decides.
Tips to Win Your HCAD Protest
- Gather comparable sales data: Find 3-5 recent sales of similar homes in your neighborhood that sold for less than your assessed value. This is the single most persuasive piece of evidence.
- Document property condition: Take photos of any damage, deferred maintenance, foundation cracks, outdated electrical or plumbing, roof issues, or cosmetic problems that reduce your home's market value
- Get an independent appraisal: Costs $300-$500 but carries significant weight at both informal hearings and ARB proceedings. If a licensed appraiser says your home is worth less than HCAD claims, that is hard to argue against.
- Check for errors in HCAD records: Verify your property's square footage, bedroom/bathroom count, lot size, year built, and condition rating. HCAD records frequently contain errors that inflate your assessed value.
- Consider a protest service: Companies like Ownwell and O'Connor & Associates will protest on your behalf for a contingency fee — you only pay if they save you money. O'Connor handles over 200,000 protests per year in Harris County alone.
A successful protest lowers your tax bill immediately — saving you money on current-year taxes and reducing any delinquent amount you owe. Even if selling is your end goal, protesting first can save you $1,000+ that goes directly into your pocket at closing.
500+ Houston investors compete for your property — don't settle for one lowball offer when you can get competing bids.
Get Competing Cash Offers for My Houston PropertyThe True Cost of Owning a Houston Home in 2026
Property taxes are devastating on their own, but they are only part of the picture. To understand why so many Houston homeowners are reaching the breaking point, you need to stack the full annual cost of ownership:
| Expense | Annual Cost |
|---|---|
| Property taxes (Harris County) | $8,050 |
| Homeowners insurance (Texas avg) | $6,610 |
| Maintenance and repairs | $3,000 - $5,000 |
| Total (before mortgage) | $17,660 - $19,660 |
That is $1,472 to $1,638 per month in non-mortgage costs — before a single dollar goes toward principal or interest on your loan. Texas homeowners insurance averages $6,610 per year, the highest in the nation, driven by hurricane, hail, and flood exposure. Combine that with Harris County's punishing tax rates and standard home maintenance, and many Houston homeowners are spending more on taxes and insurance than on their actual mortgage payment.
For homeowners on fixed incomes, retirees, or those whose wages have not kept pace with these increases, the math simply stops working. When your non-mortgage housing costs exceed $19,000 per year — and climbing — it is worth asking whether staying in the home still makes financial sense.
Your Options When Property Taxes Become Unaffordable
If Houston property taxes are straining your finances — whether you are already behind or you can see it coming — here are your five options, from least to most drastic:
Option 1: Protest Your HCAD Appraisal
As detailed in the protest section above, HCAD mass appraisals are inaccurate for over 40% of properties. Filing a protest costs nothing and average savings exceed $1,000 per year. Even if you are already behind, a successful protest reduces your current-year bill and makes future years more manageable. File by May 15 or use a service like Ownwell or O'Connor to handle it for you on contingency.
Option 2: Apply for Every Exemption You Qualify For
Many Houston homeowners miss out on exemptions that could save them thousands:
- Homestead exemption: Reduces your taxable value by at least $100,000 for school district taxes (as of 2024 legislative changes). You must apply — it is not automatic. If you have not filed, you are overpaying.
- Over-65 exemption: Additional exemption amount plus a school district tax ceiling — your school taxes are frozen at the level when you turned 65 or obtained the exemption, regardless of future value increases
- Disability exemption: Similar benefits to the over-65 exemption for homeowners with qualifying disabilities
- Disabled veteran exemption: Partial or full exemption based on VA disability rating. Veterans rated 100% disabled pay zero property tax on their homestead.
Option 3: Set Up a Payment Plan with Harris County
Harris County offers payment plans for delinquent taxes, typically spanning 12 to 36 months. This keeps your property off the tax sale list while you catch up. Contact the Harris County Tax Office to apply.
- 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 single payment and you lose the agreement; you must also stay current on all new tax bills
- Best for: Homeowners who can commit to consistent monthly payments and want to stay in the home long-term
Option 4: Tax Deferral for Seniors and Disabled Homeowners
If you are 65 or older or have a qualifying disability, Texas law allows you to defer property tax collection on your homestead. The taxes still accrue (with interest), but the county cannot foreclose while the deferral is active. This is a partial solution — it delays the problem rather than solving it — but it provides breathing room for qualifying homeowners.
Option 5: Sell Through a Marketplace and Escape the Burden
For homeowners who are significantly behind, cannot realistically catch up, or simply cannot afford the total cost of ownership in Harris County, selling is often the smartest financial decision. A marketplace sale preserves far more equity than waiting for tax foreclosure.
- Back taxes, penalties, and interest are paid from sale proceeds at closing — no upfront cost to you
- Competing offers from multiple investors drive the price up, unlike a single "we buy houses" lowball
- Close in 7-14 days — stopping the penalty clock before it costs you more
- No commissions, no repairs, no showings, no uncertainty
- You walk away with your remaining equity in hand
Waiting for the county to foreclose is the worst possible outcome. At a tax foreclosure auction, your home sells for the tax debt alone — often pennies on the dollar of its true value. A $322,000 home can be auctioned for a $15,000 tax bill, and you receive nothing. Selling proactively protects the equity you have built.
When Selling Makes More Financial Sense Than Staying
Let's run the actual numbers for a Houston homeowner facing delinquent taxes. This is not hypothetical — it is the math thousands of Harris County homeowners are doing right now.
The Scenario
- Home value: $320,000
- Delinquent taxes + penalties: $12,000
- Annual holding cost (taxes + insurance + maintenance): $19,000+
Path A: Traditional Sale Through a Real Estate Agent
- List price: $320,000
- Time on market: 3-4 months
- Additional holding costs during wait (4 months): $6,333+
- Agent commission (6%): -$19,200
- Closing costs and concessions: -$3,000
- Delinquent taxes (growing during wait): -$13,500
- Net after 4 months: ~$278,000
- Risk: buyer financing falls through, repair demands, additional delays
Path B: Marketplace Sale to Competing Cash Buyers
- Offer range (80-87% of value): $255,000 - $280,000
- Time to close: 14 days
- Delinquent taxes paid from proceeds: -$12,000
- Commissions: $0
- Closing costs to you: $0
- Net in 14 days: $243,000 - $268,000
- Risk: essentially none — cash, no financing contingency
Closing the Gap
At first glance, the traditional route appears to yield more. But factor in the realities:
- 4 months of holding costs avoided: $6,333+ in taxes, insurance, and maintenance you do not pay
- No $19,200 commission: That is money straight out of your pocket on the traditional sale
- No penalty growth: Your $12,000 tax debt stops growing the moment you close — on the traditional path, it keeps climbing for 4+ months
- Certainty vs. risk: Cash closes. Agent-listed sales fall through 15-20% of the time due to financing, inspection, or appraisal issues. Every failed deal restarts the clock.
When you account for holding costs avoided, zero commissions, and elimination of risk, the net difference between the two paths narrows dramatically — and the marketplace path delivers that money in 14 days instead of 4+ months.
The process is straightforward: accept a cash offer, the title company orders a tax payoff from Harris County, delinquent taxes and any mortgage are paid from your proceeds at closing, and you receive the remaining balance. You do not need to come up with any cash upfront. The tax debt is resolved as part of the closing process.
Frequently Asked Questions
What happens if you don't pay property taxes in Harris 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, Harris County files a lawsuit and your property is sold at tax foreclosure auction on the first Tuesday of the month at the Harris County courthouse. You lose your property and potentially all your equity. A tax lien is placed on the property immediately upon delinquency, which clouds the title and prevents refinancing.
How do I protest my HCAD property tax appraisal?
File a Notice of Protest with the Harris County Appraisal District by May 15 or 30 days after your notice of appraised value, whichever is later. You will first attend an informal hearing with an HCAD appraiser where you present your evidence. If no agreement is reached, your case goes before the Appraisal Review Board (ARB). Gather comparable sales data from your neighborhood, photos of property condition issues, and consider getting an independent appraisal ($300-$500). You can also hire a protest service like Ownwell or O'Connor & Associates to handle it on contingency.
Can I set up a payment plan for delinquent Houston property taxes?
Yes. Harris County offers payment plans for delinquent property taxes, typically spanning 12 to 36 months. Contact the Harris County Tax Office to apply and negotiate terms. Keep in mind that penalties and interest continue to accrue on the unpaid balance during the payment plan. You must stay current on your plan payments and all new tax bills to remain in good standing — miss a payment and the agreement may be voided.
What is the property tax redemption period after foreclosure 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 a 25% premium in the first year or a 50% premium in the second year, along with certain costs. For non-homestead properties such as rentals, vacant land, or commercial properties, the redemption period is only 180 days. Redemption is expensive and uncertain — selling before foreclosure is almost always the better outcome.
Can I sell my house if I owe back taxes in Houston?
Yes. You can absolutely 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. You do not need to pay the taxes before selling. Many cash buyers in Houston 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 and stop the penalty clock.
See What Houston Investors Will Pay
- 500+ Houston investors compete — not one lowball offer
- Back taxes paid at closing — no upfront cost to you
- Close in 7-14 days — before penalties grow further
- No fees or commissions — keep more of your equity
- Zero obligation — see your offers and decide what's best
Every month you wait costs you hundreds in penalties. Find out what your Houston property is worth today.
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.