Behind on Property Taxes in Dallas County? Here's What Happens Next

The Dallas County Tax Delinquency Timeline

January 31: Taxes are due. February 1: Taxes become delinquent. A 6% penalty plus 1% interest is added immediately. July 1: An additional 20% attorney collection fee is added, bringing the total penalty to roughly 27-47% of the original bill depending on timing. The penalties continue to compound each month taxes remain unpaid.

When Can Dallas County Seize Your Property?

Texas law allows the taxing authority to file a tax lien lawsuit after taxes have been delinquent for at least 180 days. In practice, Dallas County typically waits 1-2 years before filing suit. Once a judgment is obtained, the property can be sold at a tax foreclosure auction. This process can take 2-4 years total, but the penalties accumulate throughout.

Your Options When Taxes Are Delinquent

You have several options: pay the taxes in full and eliminate the lien; set up a payment plan with the Dallas County Tax Office (available to some homeowners); apply for a deferral if you are 65+ or disabled; sell the property and pay the taxes at closing from the proceeds.

How a Cash Sale Resolves Delinquent Taxes

When you sell the property, the title company calculates the total amount owed — including all penalties, interest, and attorney fees — and pays it directly from the sale proceeds at closing. You don't pay anything upfront. Whatever is left after taxes, any mortgage balance, and the purchase price is your cash at closing.

What If the Taxes Are More Than the Property Is Worth?

This is rare but possible, particularly on properties that have declined in value or been neglected. In this situation, options are more limited. A short sale or negotiation with the tax authority may be possible. An attorney who specializes in Texas tax law can advise on the specific options available.