Texas Tax Lien Investing Guide

    Redeemable Tax Deed (Sheriff's Sale / Constable's Sale) Texas Tax Code, Title 1, Chapter 34; § 34.21; § 34.21(a); § 34.21(i); Chapter 33

    Homestead/Ag Redemption

    2 Years

    All Other Properties

    180 Days

    Year 1 Penalty

    25%

    Year 2 Penalty (homestead/ag)

    50%

    How Texas Tax Sales Work

    Texas holds monthly Sheriff's Sales (or Constable's Sales) on the first Tuesday of each month at county courthouses. The investor buys a deed — not a lien — at auction. But the former owner retains a right of redemption: homestead and agricultural properties have a 2-year window; all other properties have a 180-day window. The 25% penalty in year 1 applies to both property types; homestead/ag also carry a 50% penalty in year 2. Texas uses a judicial foreclosure process, meaning the deed issued is a deed-without-warranty.

    Two-Tier Redemption Structure

    Property TypeRedemption PeriodYear 1 PenaltyYear 2 Penalty
    Homestead & Agricultural (includes mineral interests)2 Years25%50%
    All Other (rental, commercial, industrial, vacant non-ag land)180 Days25%N/A

    Property type classification is determined at the time the tax lawsuit was filed — not at auction. A property that was a homestead when foreclosure proceedings began retains its 2-year redemption period even if the owner has since moved out. Always verify property classification in county records before bidding.

    Key Texas Rules

    RuleDetail
    Written Statement requiredMust certify no delinquent taxes in that county; ~$10 fee; valid 90 days; obtain separately for each county
    Day-of registrationSome counties require pre-registration 1 week in advance (e.g., Bexar County)
    Payment at auctionCashier's check, money order, or cash; some counties require 5–10% deposit with balance due within 24 hours
    Deed typeSheriff's Deed (deed-without-warranty) — no guarantee of clear title
    Deed deliveryTypically 3–5 weeks after auction
    Improvements during redemptionTexas Tax Code § 34.21(i) limits investor recovery for improvements — avoid significant improvements until redemption expires
    Penalty calculation baseTotal invested (auction price + deed recording fee + subsequent taxes paid) — not just the auction bid
    Quiet titleTypically required after redemption period expires to obtain insurable title

    Texas Counties We Cover

    Houston

    Largest county in Texas by population. High volume, diverse property types. Written Statement required. Platform: RealAuction.com.

    Dallas

    5% deposit of anticipated maximum bid required. Balance due within 24 hours. Deed delivered 3–5 weeks post-sale. Platform: auction.com.

    Fort Worth

    Active DFW metro market. High competition on desirable residential. Tarrant County Courthouse. Confirm current procedures with Tax Office.

    Bexar CountyIn-Person
    San Antonio

    Pre-registration required 1 week prior — day-of registration no longer accepted. Must re-register each auction. 200 N. Comal, San Antonio.

    McKinney / Plano

    Written Statement ($10, valid 90 days) required. Struck-off properties may be purchased through private process with county approval.

    Austin

    Austin's strong market drives competitive residential bidding. Confirm current format and registration with Travis County Tax Assessor-Collector office.

    What Liens Survive a Texas Tax Sale?

    Because Texas tax foreclosure is a judicial process, the final judgment typically extinguishes most liens named and served in the lawsuit. A quiet title action through Texas district courts is typically required after the redemption period expires to obtain insurable title.

    Typically Extinguished

    • Liens of parties named and served in the tax foreclosure lawsuit
    • Most mortgages properly served in the lawsuit
    • Most judgment liens of served parties

    May Survive

    • Liens of parties not named or not served in the lawsuit
    • Federal IRS tax liens (specific federal notice procedures required)
    • Environmental obligations
    • Interests not discovered in title search

    Counties We Cover in Texas

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