Selling an Inherited House in Texas: Probate, Taxes & Your Options (2026)

Inheriting a house in Texas comes with both opportunity and obligation. While Texas has some of the most heir-friendly laws in the country — no inheritance tax, multiple probate shortcuts — the process still involves legal requirements you can't skip.

Whether the property is in Houston, Dallas, San Antonio, or rural Texas, this guide walks you through every step: probate requirements, tax obligations, your selling options, and common challenges that trip up Texas heirs.

The good news: Texas strongly favors independent administration (meaning less court oversight), offers more ways to avoid full probate than most states, and has zero state-level taxes on inheritance or capital gains.

Step 1: Determine If Probate Is Required

In most cases involving real property, yes — probate is required before you can legally sell an inherited house in Texas. The probate court validates the will, appoints an executor, and authorizes the transfer of property to heirs.

But Texas offers more ways to simplify or avoid full probate than almost any other state.

When Probate IS Required

You'll typically need probate when:

• The deceased owned property solely in their name
• There's a will naming beneficiaries for real property
• The deceased died intestate (no will) and owned real estate
• The estate has outstanding debts that need to be resolved

5 Ways to Avoid or Simplify Probate in Texas

Texas offers several powerful alternatives to full probate:

1. Transfer-on-Death Deed (TODD): If the deceased filed a TODD before death, the property transfers directly to the named beneficiary — no probate needed at all. The beneficiary simply files the death certificate and an affidavit with the county clerk.
2. Living Trust: Property held in a revocable living trust passes directly to beneficiaries outside of probate. The successor trustee distributes assets according to the trust terms.
3. Small Estate Affidavit: Under Texas Estates Code Chapter 205, if the estate is valued at $75,000 or less (excluding homestead and exempt property), heirs can file a Small Estate Affidavit with the court. No will is needed. The court approves the affidavit, and it can be used to transfer property.
4. Muniment of Title: If there's a valid will and no outstanding debts (other than secured debts on real property), Muniment of Title is the fastest court probate option. You simply file the will with the court, and a judge issues an order that transfers title directly. No executor appointment, no administration, no inventory. Many Texas attorneys call this the "best-kept secret" in Texas probate.
5. Affidavit of Heirship: When someone dies without a will, two disinterested witnesses (people who knew the deceased but don't inherit) sign a sworn affidavit identifying the heirs. The affidavit is filed with the county clerk's office. While not technically a court proceeding, it's widely accepted by title companies after it's been on record for at least five years — though many will accept it sooner.

Independent vs. Dependent Administration

When full probate is necessary, Texas strongly favors independent administration. This is a major advantage for heirs:

• Independent administration: The executor acts without constant court supervision. They can sell property, pay debts, and distribute assets without getting a judge's approval for each action. Most wills in Texas specify independent administration.
• Dependent administration: The executor must get court approval for almost every action — selling property, paying bills, distributing assets. This is slower, more expensive, and only used when the will requires it or there's no will and heirs can't agree on independent administration.

Step 2: Understand Texas Inheritance & Property Laws

Texas has unique property laws that directly affect how inherited property is handled, especially for married couples and intestate estates.

Community Property Implications

Texas is a community property state. This means property acquired during marriage is generally owned 50/50 by both spouses. When one spouse dies:

• The surviving spouse already owns their half of community property — that half doesn't go through probate
• Only the deceased spouse's half is subject to the will or intestate succession
• Separate property (owned before marriage or received as gift/inheritance) follows different rules

Intestate Succession in Texas (No Will)

If the deceased didn't leave a will, Texas intestate succession law determines who inherits. The rules differ based on whether the property is community or separate:

Community Property:

• If all children are also the surviving spouse's children: spouse inherits all community property
• If any children are NOT the surviving spouse's children: spouse keeps their 1/2, the deceased's 1/2 goes to the children

Separate Property:

• Personal property: spouse gets 1/3, children get 2/3
• Real property: spouse gets a life estate in 1/3 of the real property, children get the rest (plus full ownership after the life estate ends)
• No children: spouse gets all personal property, 1/2 real property; parents/siblings split the other 1/2

Multiple Heirs and Disagreements

When multiple heirs inherit a property, every co-owner has an undivided interest in the whole property. This creates a common problem: one heir wants to sell, another wants to keep it.

In Texas, any heir can petition the court for a partition sale. The court will order the property sold and proceeds divided according to each heir's ownership share. While this is a legal option, it's expensive and adversarial — attorney fees, court costs, and a potentially lower sale price through a court-ordered sale.

Homestead Protections for Surviving Spouses

Texas provides strong homestead protections. A surviving spouse has the right to occupy the homestead for life, even if the will leaves the property to someone else. This means heirs may not be able to sell an inherited house if the surviving spouse is still living in it and asserts their homestead rights.

Step 3: Know Your Tax Obligations

Texas is one of the most tax-friendly states for inheriting property. But you still need to understand the federal obligations and property tax implications.

Texas Has NO Inheritance Tax, NO Estate Tax

This is the headline: Texas does not levy any state inheritance tax or state estate tax. Period. The state of Texas will not tax you for inheriting property, regardless of the value or your relationship to the deceased.

Federal Estate Tax (Probably Doesn't Apply)

The federal estate tax only kicks in if the total estate exceeds approximately $13.61 million (2024 threshold, adjusted annually for inflation). For married couples using portability, the effective exemption is roughly $27 million. The vast majority of Texas families will never owe federal estate tax.

Capital Gains Tax and the Stepped-Up Basis

Here's where most heirs actually face a tax question. When you sell an inherited property, you may owe federal capital gains tax — but the stepped-up basis rule works heavily in your favor.

When you inherit property, your cost basis "steps up" to the fair market value at the date of death. You only pay capital gains on appreciation that happens after you inherit.

Example:

• The deceased bought the house for $100,000
• At the date of death, the house is worth $350,000
• Your stepped-up basis is $350,000
• You sell for $360,000
• Your taxable capital gain is only $10,000 — not $260,000

Without the stepped-up basis, you'd owe capital gains on $260,000 of appreciation. This rule is one of the most powerful tax benefits available to heirs.

Property Tax While Holding

Texas has some of the highest property taxes in the United States, averaging about 1.60% of assessed value. On a $350,000 home, that's roughly $5,600 per year — or $467 per month — that someone must pay while the estate holds the property.

If the deceased had a homestead exemption, that exemption typically ends after their death (unless a surviving spouse qualifies). Without it, the property tax bill may increase significantly.

Step 4: Decide How to Sell

Once you have legal authority to sell (through probate, Muniment of Title, or another method), you need to choose how to sell. Each option has different tradeoffs.

Option 1: Traditional Listing Through an Agent

Best for: Properties in good condition when you have time and live nearby

• Potential price: Highest possible sale price
• Timeline: 3-6 months on average (longer in slower markets)
• Costs: 5-6% agent commission, plus repairs, staging, and closing costs
• Effort: High — repairs often needed on inherited homes, showings, negotiations

The challenge with inherited properties: most haven't been updated in years. Buyers on the MLS expect move-in ready homes, so you may need to invest $10,000-$50,000+ in repairs and updates before listing — money and effort many heirs don't have.

Option 2: Cash Buyer Marketplace (Propcash)

Best for: Speed + fair price through competition

• Potential price: 10-20% more than single-buyer offers thanks to competing bids
• Timeline: 7-14 days to close
• Costs: $0 — no commissions, no fees, no repairs
• Effort: Minimal — submit property details, review offers, pick the best one

Multiple investors compete for your property, which drives up offers. You sell as-is with zero repairs on neglected homes. This is especially valuable for inherited properties where heirs live out of state or need to split proceeds quickly.

Option 3: "We Buy Houses" Company

Best for: When you need to sell immediately and don't care about price

• Potential price: Typically 50-70% of market value (single lowball offer)
• Timeline: 7-14 days
• Costs: $0 upfront, but the low offer IS the cost
• Effort: Minimal

These companies make their money by buying low. When you're their only option, they know it — and price accordingly. No competition means no incentive to offer fair value.

Which Option Fits Your Situation?

Common Challenges with Texas Inherited Property

Inherited properties come with unique complications. Here are the issues Texas heirs face most often — and how to handle them.

Out-of-State Heirs

Many heirs don't live in Texas. Managing an inherited property from another state means coordinating remotely with attorneys, maintaining a vacant property, and potentially traveling for showings and closings. A cash sale eliminates most of this — the entire process can happen remotely, and you never have to visit the property.

Deferred Maintenance and Neglected Homes

Inherited homes often haven't been maintained for years, especially if the deceased was elderly or ill. Roof issues, outdated systems, foundation problems, and cosmetic deterioration are common. Traditional buyers expect move-in ready — but cash buyers purchase as-is, so deferred maintenance doesn't have to be your problem.

Hoarder Properties

Extreme clutter or hoarding situations make traditional sales nearly impossible. Professional cleanouts can cost $5,000-$25,000+. Cash buyers take the property as-is, contents and all, saving you the expense and emotional difficulty of a cleanout.

Title Complications

Inherited properties frequently have title issues: unreleased liens from decades ago, unknown heirs with potential claims, breaks in the chain of title, or easement disputes. A title search will reveal these issues, and most can be resolved — but they add time and legal expense. Experienced cash buyers deal with title issues regularly and often have solutions your average retail buyer wouldn't accept.

Property Tax Delinquency

Texas is particularly aggressive with property tax enforcement. The state allows tax lien sales, and taxing authorities can initiate foreclosure proceedings on delinquent properties. If property taxes haven't been paid, address this immediately. Delinquent taxes accrue penalties and interest quickly in Texas — up to 47% in penalties and interest can accumulate on overdue amounts. Selling the property and paying delinquent taxes from proceeds is often the best solution.

Multiple Heirs Who Disagree

This is the most common challenge. One sibling wants to keep the house, another wants to sell, and a third wants to rent it out. When heirs can't agree, options are limited:

• Negotiate a buyout: One heir purchases the others' shares at fair market value
• Agree on a sale method: Getting competing cash offers gives everyone objective data to work with
• Petition for partition: Any heir can force a court-ordered sale, but this is expensive and adversarial

How Long Does the Whole Process Take?

The total timeline from inheritance to sale depends on your probate path and selling method.

Total timeline with a traditional agent: 6-24+ months (mostly probate + listing time)

Total timeline with a cash marketplace: 3-6 months (mostly probate; selling takes just days)

If you qualify for Muniment of Title, you could go from inheritance to cash in hand in as little as 6-10 weeks.

Frequently Asked Questions

Do I have to pay inheritance tax on a house in Texas?

No. Texas has no state inheritance tax or estate tax. You may owe federal estate tax only if the total estate exceeds approximately $13.61 million. You may owe federal capital gains tax if the property appreciates after you inherit it, but the stepped-up basis rule protects you from gains that occurred during the deceased's lifetime.

Can I sell an inherited house in Texas without probate?

In some cases, yes. If the property was held in a trust or had a Transfer-on-Death Deed, probate isn't needed. For smaller estates under $75K, a Small Estate Affidavit may work. An Affidavit of Heirship (for intestate estates) or Muniment of Title (with a valid will and no debts) can also simplify the process significantly.

How long does probate take in Texas?

Independent administration (most common in Texas) typically takes 3-6 months. Dependent administration takes 6-18 months. Texas strongly favors independent administration, which allows the executor to act without constant court supervision.

Can I sell an inherited house as-is in Texas?

Yes. Cash buyers regularly purchase inherited properties in any condition. You're still required to complete the Seller's Disclosure Notice under Texas Property Code 5.008, but many inherited property sales qualify for exemptions (estate/probate sales). You don't have to make any repairs.

What if there are multiple heirs who disagree about selling?

Any heir can petition the court for a partition sale, which forces the sale of the property. The proceeds are then divided according to each heir's ownership share. It's usually better to agree on a sale privately to avoid legal costs and court delays.

Next Steps: Sell Your Inherited Texas Home

Selling an inherited house in Texas doesn't have to be a drawn-out ordeal. Here's how to move forward:

1. Determine your probate path: Can you use Muniment of Title, Affidavit of Heirship, or Small Estate Affidavit? Consult a Texas probate attorney to find the fastest route.
2. Get an appraisal at date of death: This establishes your stepped-up basis and protects you at tax time.
3. Align with co-heirs: If applicable, discuss selling options before emotions escalate.
4. Understand your holding costs: Texas property taxes are among the nation's highest — every month you hold costs money.
5. Get competing cash offers: Know what the market will pay today so you can make an informed decision.

Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Probate laws, tax rules, and real estate regulations vary by situation. Consult with a Texas probate attorney, tax professional, or real estate attorney for advice specific to your circumstances.