Property Tax Deferrals for Homeowners

PTC 33.06 – Deferred Collection of Taxes on Residence Homestead

Texas Law permits a homeowner who qualifies for the Age 65 or Older, Disabled Persons or Disabled Veterans exemption to defer payment of property taxes owed on the person’s residence homestead while it is owned and occupied by the homeowner that qualifies for the Tax Deferral.

  • It is important to note that this deferral only postpones your taxes and does not cancel them.
  • Unpaid property taxes will continue to accrue interest at a rate of 5% during the deferral period.
  • The deferral ends when the person who applied to the deferral ceases to occupy the home as the person’s residence homestead.
  • If the person who applied dies, the deferral passes to the person’s surviving spouse if the spouse is 55 or older, owns the residence, and was living in it at the time of death.
  • Once the deferral has ended all accrued taxes, penalty, and interest must be paid within 180 days.
  • On the 181st day, the entire amount becomes delinquent and the taxing units may pursue collection activities, including foreclosure.
  • Properties subject to a mortgage need to be cautious when applying for a tax deferral. The mortgage company may be able to foreclose if the deferral violates the terms of the deed of trust.
  • The deed of trust may permit the mortgage company to foreclose if all taxes are not paid timely.
  • Eligible homeowners in Fort Bend County may obtain a deferral by filing a deferral affidavit with the Fort Bend Central Appraisal District.

Related Documents:
Tax Deferral Affidavit for Age 65 or Older or Disabled Homeowner / Form 50-126


PTC 33.065 – Deferred Collection of Taxes on Appreciating Residence Homestead

Texas Law permits a homeowner who qualifies for the Residence Homestead exemption to defer or postpone payment on a portion of the increase of current property taxes on the person’s residence homestead while it is owned and occupied by the homeowner that qualifies for the Tax Deferral.

A property owner who qualifies for the tax deferral can take advantage of this law if the value of their residence homestead increased by more than 5% from the preceding year, excluding any new improvements.

The amount of taxes able to be deferred depends on how great the increase in value was.

For example, if the prior year’s appraised value was $100,000 and the current year’s appraised value is $110,000. This change in value from prior to current year value represents a 10% increase. The law allows you to defer paying property taxes on any amount of increase over 5%. A 5% increase would have resulted in a value of $105,000. Therefore, the law allows you to pay taxes as if the home’s value was $105,000 and to defer paying taxes on the remaining $5,000 of value. If the home’s value increased by 5% or less, the law doesn’t apply to you.

  • It is important to note that this deferral only postpones your taxes and does not cancel them.
  • Unpaid property taxes will accrue interest at a rate of 8% per year during the deferral period.
  • The deferral period ends on the date the homeowner that qualified for the tax deferral no longer owns or occupies the property as their residence homestead.
  • On the date the deferral ends the property will begin to accrue standard penalties and interest under Texas Tax Code, section 33.01.
  • An additional penalty to defer the costs of collecting a delinquent tax may be imposed on the 90th day after the deferral period ends.
  • Properties subject to a mortgage need to be cautious when applying for a tax deferral.
  • The mortgage company may be able to foreclose if the deferral violates the terms of the deed of trust.
  • The deed of trust may permit the mortgage company to foreclose if all taxes are not paid timely.
  • Eligible homeowners in Fort Bend County may obtain a deferral by filing a deferral affidavit with the Fort Bend Central Appraisal District.

Related Documents:
Tax Deferral Affidavit for Appreciating Residence Homestead Value / Form 50-274

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Est. 1982

The Fort Bend Central Appraisal District is a political subdivision of the State of Texas established in 1982 for the purpose of discovering and appraising property for ad valorem tax purposes for each taxing unit within the boundaries of the district.

The district has approximately 376,000 accounts to appraise each year with a total market value of approximately $107 billion.

FBCAD Serves Approx. 215 Taxing Units.