Many Texas seniors legally put off paying property taxes on their homes. When the owner passes away or moves out, that bill comes due. Here’s how the deferral works, how long heirs have, and the options for the house.
Short answer: In Texas, a homeowner who is 65 or older or disabled can file an affidavit and put off paying property taxes on their home for as long as they own it and live in it. The taxes don’t go away. They pile up with 5% interest a year, and a tax lien stays on the house. When the owner dies or moves out, the deferral ends (unless a qualifying surviving spouse still lives there). The taxing units then have to wait until 180 days after they send a delinquency notice before they can sue or sell the house for taxes. That window is your time to get a payoff number, sort out who has authority over the house, and decide whether to pay it, refinance, rent, list, or sell.
This catches a lot of families off guard. Mom or Dad never mentioned it, the house seemed paid off, and then a tax statement or a title search shows several years of unpaid taxes. With the 2026 tax bills arriving this fall, it’s a good time to understand how it works.
What a Property Tax Deferral Is
Texas lets certain homeowners delay paying property taxes on their homestead. To qualify, the person has to be 65 or older, disabled under the Tax Code’s definition, or qualified for the disabled veteran exemption, and the house has to be the home they own and live in. (Tax Code Sec. 33.06(a))
In Harris County, the owner files a Tax Deferral Affidavit (HCAD Form 33.06) with the Harris Central Appraisal District, signed in front of a notary. Once it’s on file, no taxing unit can sue to collect those taxes or sell the house at a tax sale while the owner still lives there. (HCAD tax deferral page)
A deferral postpones the taxes. It doesn’t forgive them. During the deferral:
- The tax lien stays on the house.
- Interest keeps running at 5% a year.
- No new delinquency penalties are added, but any penalties and interest owed before the affidavit was filed still count.
(Tax Code Sec. 33.06(d)) After a few years, the balance can be much bigger than one year’s tax bill. If you’ve never dealt with a tax lien before, our guide on how a tax lien works covers the basics.
When the Deferral Ends
The deferral is tied to the person who filed it. It ends when that person no longer owns and lives in the house as their homestead. That can happen when they pass away, sell, or move into assisted living or in with family.
The surviving spouse exception
If the owner dies and the surviving spouse was 55 or older at the time of death, and the house was the spouse’s homestead too, the deferral keeps going for the spouse. It ends when the spouse no longer owns and lives there. (Tax Code Sec. 33.06(f))
The 180-day window
Once the deferral ends, the clock doesn’t start on the day of death. The law says a taxing unit can’t file suit or hold a tax sale until the 181st day after the tax collector delivers a notice of delinquency following the date the owner stopped owning and living there. (Tax Code Sec. 33.06(b)) HCAD puts it simply: the accrued taxes and interest are due within 180 days, and on the 181st day the full amount becomes delinquent and the taxing units can pursue foreclosure. (HCAD)
Don’t wait for that letter to act. Watch the mail at the house, or have it forwarded, so you know when the notice arrives.
What happens if it isn’t paid
If the balance is still unpaid after the window closes, the taxing units can file a delinquent tax suit and ask the court to order the house sold. Extra charges can show up at that point, including a collection penalty on top of the deferred balance and attorney’s fees of 15% in a tax suit. (Tax Code Sec. 33.06(d), Tax Code Sec. 33.48)
First Steps for Heirs
- Find out what’s owed. Look up the property on the Harris County Tax Office site, or the tax office for the county where the house is. You can also ask the collector for a tax certificate, which shows the delinquent taxes, penalties, and interest due. The fee is $10 or less. (Tax Code Sec. 31.08)
- Pay the current year’s bill if you can. The 2026 bills are due now and become delinquent if not paid before February 1, 2027. (Tax Code Sec. 31.02) Keeping the current year paid stops the balance from growing faster.
- Check for a mortgage or reverse mortgage. Most deeds of trust require taxes to be kept current, so a lender may have its own deadlines. (HCAD news release)
- Figure out who has authority to act. If the house is still in your parent’s name, you’ll likely need probate or an heirship process before you can sell or refinance. Our guide on how long probate takes in Houston explains the usual paths.
- Secure the house and keep it insured. A vacant house still needs utilities, lawn care, and regular checks.
If You Plan to Move In
If you’re 65 or older or disabled and the inherited house becomes your homestead, you may be able to file your own deferral. Texas treats an heir property owner who qualifies the home as their homestead as the sole owner for this purpose. (Tax Code Sec. 33.06(h)) The old balance doesn’t disappear, though, so talk with the appraisal district and the tax office about what that means for the prior years.
If you don’t qualify for a deferral but the house becomes your homestead, ask the tax office about an installment agreement. For a qualifying homestead, those plans run at least 12 months and no more than 36. (Tax Code Sec. 33.02)
Keep, Rent, List, or Sell?
Once you know the payoff and who has authority, the choice usually comes down to cash, time, and condition.
Pay it off and keep the house if the family has the funds and wants to keep it, or someone plans to live there.
Rent it out if the house is in good shape and the rent covers taxes, insurance, and upkeep. You’ll still need to clear or plan for the deferred balance.
List it with a Realtor if the house shows well and you have time. The deferred taxes and interest are paid at closing, and the title company typically takes them out of the seller’s proceeds. (HCAD Q&A) In many cases this brings the highest price.
Sell it as-is if the house needs work, you live out of town, the family can’t agree on repairs, or the 180-day window is getting close. You’ll usually give up some price for speed and certainty, so compare offers. Our guide on selling a house with delinquent property taxes walks through how that works.
Hypothetical example: Say your mother lived in her Katy home until she passed away last spring. She had filed a tax deferral years ago, and you’re named executor in her will. After probate gives you authority, you request a tax certificate and learn several years of taxes plus 5% interest are owed. You’re in Austin, the house needs a roof and updates, and your brother wants his share soon. You could pay the taxes, fix it up, and list it, or sell it as-is and let the title company pay the taxes from the proceeds. Pricing both paths side by side shows which one leaves the family more money after costs and time.
Frequently Asked Questions
Do heirs have to pay a parent’s deferred property taxes?
The taxes are tied to the house through the tax lien. If no qualifying spouse continues the deferral, HCAD says the deferred amount becomes a liability of the estate or the next owner. (HCAD Q&A) In practice, it gets paid off when the house is sold or refinanced, or by whoever keeps it.
How long do we have after Mom or Dad passes?
The taxing units can’t sue or hold a tax sale until the 181st day after the tax collector delivers a delinquency notice following the date the owner stopped owning and living in the home. (Tax Code Sec. 33.06(b)) The date of death alone doesn’t start that clock, so watch for the notice.
Can we sell the house before the taxes are paid?
Yes. The deferred taxes and interest are usually paid out of the sale proceeds at closing. You do need legal authority to sell first, which often means finishing probate or an heirship process.
Does the deferral cancel the interest?
No. Interest runs at 5% a year during the deferral. What the deferral stops is new delinquency penalties, lawsuits, and tax sales while the owner qualifies. (HCAD news release)
The Bottom Line
A property tax deferral helps seniors stay in their homes, but it leaves a balance behind. When the owner passes or moves out, heirs get a limited window after the tax office sends its notice. Get the payoff number early, keep the current bill paid if you can, sort out probate, and then compare keeping, renting, listing, and selling with real numbers.
If you’d like to see what an as-is offer looks like next to listing, you can request a free, no-obligation cash offer by calling Houston Capital Home Buyers at 713-581-9075 or visiting https://houstoncapitalhomebuyers.com/. We’ve bought 500+ houses around Houston, and if listing makes more sense for your family, we’ll tell you.
This article is general information about Texas property tax law as of November 2026. It isn’t legal, tax, or financial advice. Talk with a Texas probate or real estate attorney and your county tax office about your situation.
