Texas · Tax Code §33.06Texas over-65 property tax deferral: what happens to deferred taxes when the home is sold

Under Texas Tax Code §33.06, a homeowner who is 65 or older, disabled, or qualified for the disabled veteran exemption can defer collection of property taxes on the home they own and occupy as a residence homestead, by filing an affidavit with the chief appraiser. While the deferral lasts, a taxing unit may not sue to collect or foreclose the tax lien – but the taxes aren't forgiven. The tax lien remains on the property and interest keeps accruing at 5% a year instead of the usual delinquency rate; interest and penalties that had already accrued before the affidavit are preserved. The deferral ends when the owner no longer owns and occupies the home as a residence homestead – for example, after selling it: collection can then resume on the 181st day after the collector delivers a delinquency notice. If the owner dies, the deferral continues for a surviving spouse who was 55 or older at the death and also lived there. For a sale, that means years of deferred taxes plus interest may be sitting as a lien on the seller's home, so ask the title company early for a tax certificate showing them.