A tax lien is a legal claim against your property when you fail to pay property taxes. It gives the government a secured interest in your real estateāmeaning they have a right to collect before you can sell or refinance with clear title.
Tax liens are serious. They attach to the property (not to you personally), accrue penalties and interest, and can eventually lead to the government selling your property to recover the debt.
The lien remains until the tax debt is paid in full, including all accumulated penalties and interest.
Tax liens are the county's insurance policyāthey ensure property taxes eventually get paid, even if it means selling your home. This is why property taxes take priority over almost all other debts, including mortgages.
Avoiding a tax lien is straightforward: pay your taxes on time. If you're struggling:
ā¢ Contact your county about payment plans
ā¢ Seniors and disabled homeowners may qualify for tax deferral
ā¢ Lowering your assessed value through an appeal reduces what you owe
Prevention is easier than cure. Reducing your tax burden now helps you avoid problems later.
A homeowner falls behind on property taxes:
Year 1: Fails to pay $8,000 property tax bill by January 31 deadline
February 1: Taxes become delinquent; penalties begin (6% in Texas)
July 1: Additional penalty added (12% total in Texas)
Tax lien filed: County records a lien against the property
The homeowner now owes $8,000 + $960 penalty + interest. They cannot sell the home or refinance until the lien is cleared. If still unpaid, the property may be sold at a tax sale.
It varies by state and county. In Texas, property taxes become delinquent February 1 (after January 31 deadline), and liens attach automatically. The process moves faster than many homeowners expect.
Technically yes, but the lien must be satisfied at closing. The unpaid taxes, penalties, and interest are paid from sale proceeds before you receive anything. Buyers won't accept a property with an unresolved lien.
Pay the full amount owed, including all penalties and interest. Once paid, the county releases the lien. Get documentation confirming the release for your records.