Key Takeaways
- Penalties start February 1: A delinquent Texas tax bill picks up a 6% penalty plus 1% interest immediately, the penalty climbs to 12% by July 1, and a collection penalty of up to 20% can be added on top (Texas Tax Code §§ 33.01, 33.07).
- Bexar County can sue at any time: Once taxes are delinquent, the taxing units can file suit to foreclose the tax lien (§ 33.41), and after judgment the house can be sold at the county's public tax sale on the first Tuesday of a month (§ 34.01).
- The redemption rule is expensive: A homestead can be redeemed within two years of a tax sale, but only by paying the purchaser's price plus a 25% premium in year one or 50% in year two (§ 34.21).
- You have real tools first: A BCAD protest by the May 15 deadline, the $140,000 school-district homestead exemption, installment agreements of 12 to 36 months, and a deferral for homeowners 65 or older can all shrink or pause the problem.
- Selling protects equity: A sale pays the tax lien out of your proceeds at closing, and a cash sale can close in as few as 7 days, before the penalty clock and the court process take more of what you own.
If you're behind on property taxes in San Antonio, the calendar is working against you. Bexar County's combined property tax rate runs near 2.27%, one of the heavier metro burdens in Texas (Ballard Property Tax Protest, 2026), and Texas law stacks penalties onto a late bill faster than almost any other kind of debt. A balance that goes delinquent on February 1 can grow by roughly 41.6% before August, once the statutory penalties, interest, and the maximum collection penalty are added (Texas Tax Code §§ 33.01, 33.07).
The good news is that Texas also gives homeowners more tools than most realize: appraisal protests, homestead exemptions, installment agreements, and deferrals for older and disabled owners. This guide walks through how the penalty schedule actually works, how a Bexar County tax foreclosure unfolds, what the two-year redemption rule does and does not do, and how selling the house, including selling your San Antonio house for cash, can settle the debt at closing and protect the equity you've built.
What Happens When You Fall Behind on Property Taxes in San Antonio
Falling behind on property taxes in San Antonio triggers an automatic, statutory chain of penalties, and eventually a lawsuit, because the county never has to wait for you. A tax lien attaches to every Texas property on January 1 of each year, before the bill is even calculated (Texas Tax Code § 32.01). Bills go out starting October 1, payment is due by January 31, and the balance becomes delinquent on February 1 (Texas Tax Code § 31.02).
The moment the bill is delinquent, it picks up a 6% penalty plus 1% interest. The penalty grows by one percentage point each month until it hits 12% on July 1, and interest keeps accruing at 1% per month with no cap (Texas Tax Code § 33.01). On top of that, most Texas taxing units, including those in Bexar County, add a collection penalty of up to 20% of the total owed when the account is referred to a law firm on July 1 (Texas Tax Code § 33.07).
Run the arithmetic and an unpaid bill can grow by roughly 41.6% between February 1 and July 1: 12% penalty, 6% interest, and a 20% collection penalty applied to the whole balance. On an $8,000 bill, that is roughly $3,300 in added charges in five months (an illustrative figure computed from the statutory percentages, not a quote for any specific account). No credit card, mortgage, or medical bill escalates on a schedule like this, which is why a delinquent tax bill deserves attention before almost any other debt.
The Penalty Schedule, Month by Month
Here is the statutory schedule that applies to a Texas property tax bill that goes delinquent on February 1 (Texas Tax Code §§ 33.01, 33.07). Bexar County follows it like clockwork:
| Month | Penalty | Interest | What Else Happens |
|---|---|---|---|
| February | 6% | 1% | Bill is officially delinquent; lien already in place. |
| March | 7% | 2% | Delinquency notices go out. |
| April | 8% | 3% | Installment agreement still available on request. |
| May | 9% | 4% | May 15 protest deadline for the current year's value. |
| June | 10% | 5% | Final month before the account is referred for collection. |
| July 1 and after | 12% | 6%, then +1%/month | Collection penalty of up to 20% added; lawsuit can follow at any time. |
Interest keeps compounding at 1% per month for as long as the balance is unpaid, even years later. Whatever you decide, protest, payment plan, deferral, or sale, deciding early is worth real money. Every month of waiting adds another 1% to the bill.
How Does a Texas Tax Foreclosure Work?
A Texas tax foreclosure is a lawsuit: the taxing units sue to foreclose the tax lien, win a judgment, and have the house sold at the county's public tax sale. Unlike a mortgage foreclosure, there is no required waiting period before filing. A taxing unit may bring suit at any time once its taxes are delinquent (Texas Tax Code § 33.41). In practice, accounts often sit for months or years before suit is filed, but nothing in the law makes the county wait.
After the court signs a judgment, the clerk issues an order of sale and the property is scheduled for the county's public tax sale (Texas Tax Code § 34.01). Notice of the sale is given in the same manner as other Texas forced sales under Property Code § 51.002, and the sale itself is held on the first Tuesday of the month at the Bexar County location, the same day as Texas mortgage foreclosure sales (FindLaw, Tex. Prop. Code § 51.002). Here is the full arc:
| Stage | What Happens | Authority |
|---|---|---|
| January 1 | Tax lien attaches automatically to the property. | Tax Code § 32.01 |
| February 1 | Unpaid bill becomes delinquent; penalties and interest begin. | Tax Code §§ 31.02, 33.01 |
| July 1 | Account referred for collection; up to 20% penalty added. | Tax Code § 33.07 |
| Any time after delinquency | Taxing units file suit to foreclose the tax lien. | Tax Code § 33.41 |
| Judgment and order of sale | Court rules for the taxing units; sale date is set. | Tax Code § 34.01 |
| First Tuesday of the month | House sold at the county's public tax sale; deed goes to the winning purchaser. | Tax Code § 34.01; Prop. Code § 51.002 |
The critical point for a homeowner with equity: the sale is designed to satisfy the tax judgment, not to fetch what the house is worth. If the sale brings in more than the judgment, you can petition for the excess proceeds under Texas Tax Code § 34.04, but the process takes time, other lienholders are paid first, and recovering the full difference is far from certain. Relying on excess proceeds is not a plan. The only dependable way to capture the value above your tax debt is to sell the house yourself before the sale date.
The Two-Year Redemption Rule (Don't Count on It)
Texas gives a former owner the right to buy back a homestead within two years of a tax sale, but the price of that right makes it useless for most families. Under Texas Tax Code § 34.21, redeeming a homestead or agricultural property means paying the purchaser everything they paid, plus a 25% premium in the first year or a 50% premium in the second, plus certain costs the purchaser has covered since the sale (LegalClarity, 2025). For non-homestead property, such as a rental or inherited house you don't live in, the window shrinks to 180 days.
Think about what that means in practice. An owner who could not come up with the original tax bill now has to produce the full sale amount plus a quarter to half again more, within a deadline, while living somewhere else. Redemption exists mostly to give tax sale purchasers a predictable return, not to give owners a realistic second chance. The time to act is before the sale, when every option is still open, not after it, when only the most expensive one is left.
Lowering Your 2026 Bill: BCAD Protests and Exemptions
Before you decide the house is unaffordable, make sure you're paying the lowest legal amount, because many San Antonio owners are not. Two tools do most of the work: protesting the appraised value and claiming every exemption you qualify for.
Protest Your BCAD Appraisal by May 15
The Bexar Appraisal District (BCAD) values roughly the entire county by mass appraisal, and you have the right to challenge its number every year. File a Notice of Protest by May 15 or within 30 days after your notice of appraised value is delivered, whichever is later (Texas Tax Code § 41.44). Most protests begin with an informal meeting with an appraiser and, if that fails, go to the Appraisal Review Board for a binding decision.
The strongest evidence is simple: recent sales of comparable houses in your neighborhood, photos of foundation movement, roof age, flood history, or other condition problems, and errors in BCAD's records on square footage or room count. Appraisal pressure is real in redeveloping areas like Dignowity Hill, Government Hill, and the near West Side, where rising land values can push assessed values up faster than a longtime owner's income, so a protest is worth filing even if you may sell later. A lower value reduces both this year's bill and any delinquent balance still growing.
Claim Every Exemption You Qualify For
- General homestead exemption: $140,000 of your house's value is exempt from school-district taxes, and $150,000 for homeowners 65 or older, reflecting the increase Texas voters approved in 2025 (SmartAsset, 2026). You must apply; it is not automatic.
- The 10% homestead cap: Once a homestead exemption is in place, the appraised value used for taxes cannot rise more than 10% per year plus new improvements, even if market value jumps more (Bexar Appraisal District).
- Over-65 and disability exemptions: Additional exemption amounts plus a school-tax ceiling that freezes the school portion of your bill.
- Disabled veteran exemption: Partial or total exemption depending on the VA disability rating, which matters in a military city like San Antonio.
Payment Plans, Deferrals, and Property Tax Loans
If the bill is already delinquent, Texas law still offers three ways to deal with it while keeping the house. Each has real trade-offs.
Installment Agreements With the Bexar County Tax Office
Texas law provides for installment agreements on delinquent residence-homestead taxes, generally running 12 to 36 months (Texas Tax Code § 33.02). An agreement in good standing keeps the account out of the tax sale pipeline while you catch up. Interest continues to accrue on the unpaid balance, you must also stay current on each new year's bill, and a default can void the agreement, so be honest with yourself about whether the monthly number fits your budget before you sign.
The Over-65 and Disability Deferral
Homeowners who are 65 or older, or who have a qualifying disability, can file a deferral affidavit that stops collection on their homestead, including a pending tax sale, for as long as they own and live in the house (Texas Tax Code § 33.06). The taxes do not disappear. They accrue with interest at 5% a year and come due after you sell, move away, or pass away. A deferral is genuine breathing room for an owner on a fixed income, but it shifts the bill onto the eventual sale or onto your heirs, which is worth discussing with family before you rely on it.
Property Tax Loans (Read the Terms Twice)
Texas allows private lenders to pay your tax bill and take over the county's lien, a transaction authorized by Texas Tax Code § 32.06. This stops the statutory penalty clock, but the lien and the foreclosure risk do not go away; they move to the lender, and the combined interest and fees can be substantial. If you are considering a tax loan, compare the total repayment cost against a payment plan with the county and against simply selling. For many owners with thin budgets, a loan only postpones the same decision at a higher price.
Selling a San Antonio House When You Owe Back Taxes
You can sell a San Antonio house with delinquent taxes, and the debt is settled out of your proceeds at closing rather than out of your pocket. The title company orders a certified payoff from the Bexar County Tax Assessor-Collector, pays the taxes, penalties, and interest from the sale funds, and records the release. If a tax suit has been filed, the case is resolved once the county is paid, and a scheduled tax sale is called off when the payoff funds clear. The one hard rule is timing: the closing must fund before the sale date.
Timing is also where the San Antonio market matters. Homes took a median 98 days to sell in March 2026, the longest of the major Texas metros, and a financed buyer typically needs another month or so to close (Redfin, March 2026). The Redfin median sale price for the city was $260,000 in March 2026, down 3.3% year over year (Redfin, March 2026), and Zillow's typical San Antonio home value was $256,363 in April 2026, down 3.9% (Zillow, April 2026). Zillow forecasts the metro down about another 2.6% over the year ahead (Zillow via ResiClub, March 2026). In a softening market with a long retail timeline, a delinquent balance keeps compounding at 1% per month the whole time you wait, and a deal that falls through restarts the clock.
That is why owners with a tax suit or sale date on the calendar often choose a cash sale. There is no financing contingency, no appraisal, and no lender underwriting, so a cash closing can happen in as few as 7 days from contract. Propcash is a direct cash homebuyer: we buy houses across Texas as-is, including houses with tax liens, and we handle Bexar County payoff logistics as part of closing. Our offers are based on local market data, and we'll show you how we got to our number. You can also get a cash offer with no fees or commissions charged to you, and no obligation to accept. If the mortgage is also behind, our guide to stopping foreclosure in Texas explains how the first-Tuesday clock works on that side.
The urgency here belongs to the tax calendar, not to our offer. Propcash offers don't expire in 24 hours, and we don't chase you with calls. Get your number, show it to your attorney or your family, and move when you're ready. If listing with an agent would clearly serve you better and you have the time, we'll tell you that too.
Frequently Asked Questions
What happens if you don't pay property taxes in Bexar County?
Your unpaid balance picks up a 6% penalty plus 1% interest on February 1, and the penalty climbs each month until it reaches 12% on July 1, when a collection penalty of up to 20% can be added (Texas Tax Code §§ 33.01, 33.07). The taxing units can then file a lawsuit to foreclose the tax lien, and after a judgment the house can be sold at the county's public tax sale on the first Tuesday of a month. The sale price is tied to the tax debt, not the market value of the house, so waiting puts your equity at risk.
How long can you be behind on property taxes in San Antonio before you lose your house?
There is no fixed grace period. A taxing unit can file suit to foreclose its tax lien at any time once taxes are delinquent (Texas Tax Code § 33.41), and the path from delinquency to a completed tax sale often takes months to a few years depending on the county's docket. Once a judgment is entered and a sale date is set, the process moves quickly, so treat any citation or lawsuit notice as urgent.
How do I protest my BCAD appraisal?
File a Notice of Protest with the Bexar Appraisal District by May 15 or within 30 days after your notice of appraised value is delivered, whichever is later (Texas Tax Code § 41.44). Most protests start with an informal meeting with an appraiser and, if no agreement is reached, move to a hearing before the Appraisal Review Board. Comparable sales, photos of condition problems, and errors in BCAD's records are the strongest evidence.
Can I set up a payment plan for delinquent San Antonio property taxes?
Yes. Texas law directs collectors to offer installment agreements on residence homesteads, generally running 12 to 36 months (Texas Tax Code § 33.02). Interest continues to accrue while you pay, and a default can void the agreement, so the plan only works if the monthly amount genuinely fits your budget alongside each new year's bill.
Can I get my house back after a Texas tax sale?
If the property was your homestead, you have two years from the date the purchaser's deed is recorded to redeem it, but you must pay the amount the purchaser paid plus a 25% premium in the first year or 50% in the second, along with certain costs (Texas Tax Code § 34.21). Non-homestead property gets only 180 days. Most owners who could not pay the original bill cannot fund a redemption, so it rarely saves the house in practice.
Can I sell my San Antonio house if I owe back taxes?
Yes. The title company orders a payoff from the Bexar County Tax Assessor-Collector, the back taxes, penalties, and interest are paid out of your proceeds at closing, and you keep the remaining equity. A cash sale can close in as few as 7 days, which matters when a tax suit or sale date is already on the calendar. The closing has to fund before the scheduled sale date to stop the tax sale.
Can I defer my property taxes if I am 65 or older?
Yes. Homeowners who are 65 or older or who have a qualifying disability can file a deferral affidavit that halts collection, including a pending tax sale, for as long as they own and occupy the homestead (Texas Tax Code § 33.06). The taxes do not go away: they accrue with interest at 5% a year and come due after you sell, move, or pass away, which can leave a large bill for your heirs.
The Bottom Line
Texas property tax collection is fast, mechanical, and indifferent to good intentions. If the bill is merely high, protest the value and claim your exemptions. If it's delinquent, get on an installment agreement or, if you qualify, file a deferral before the July 1 collection penalty lands. If the debt has outgrown the budget, selling before a tax sale is the path that keeps your equity in your hands instead of the court registry. Propcash is not a law firm and does not provide legal or tax advice, but if a cash sale is on your shortlist, we'll make you an offer based on your local market data, show you the reasoning, and let you take your time with it.
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Let's chatData Sources: Texas Tax Code §§ 31.02, 32.01, 32.06, 33.01, 33.02, 33.06, 33.07, 33.41, 34.01, 34.04, 34.21, 41.44; Texas Property Code § 51.002; Bexar Appraisal District; Bexar County Tax Assessor-Collector; Ballard Property Tax Protest (2026); Redfin San Antonio housing market data (March 2026); Zillow Home Value Index, San Antonio (April 2026); Zillow via ResiClub metro forecast (March 2026); SmartAsset Texas property tax guide (2026). Propcash is a direct cash homebuyer, not a law firm, and does not provide legal or tax advice. Homeowners facing a delinquent-tax lawsuit or a scheduled tax sale should consult a Texas-licensed real estate or tax attorney.