Who Pays Property Taxes During Probate in Texas?

Disclaimer: I am a real estate professional, not an attorney or tax advisor. The information below is for educational purposes. For specific legal advice regarding your situation, please consult a qualified Texas probate attorney.

Introduction: Death, Taxes, and Texas Probate

Losing a loved one is hard enough without having to worry about the mail piling up on the kitchen counter. But here in Texas, the tax man is unfortunately one of the few visitors who doesn’t respect a grieving period. If you are handling an estate right now, you might be staring at a tax bill and wondering whose bank account that money needs to come from.

It is a common misconception that property taxes “pause” while a house is tied up in court. They don’t. In fact, if you are reading this on or after February 1st, the clock has already ticked over into penalty territory for the previous tax year.

The short answer to “who pays” is usually simple: the estate is responsible. However, depending on whether there is cash in the bank or just a house full of memories, the reality can get complicated. Let’s break down exactly how this works so you can protect the property and your own wallet.

The General Rule: The Estate Pays First

When someone passes away, their assets and their debts essentially become a temporary business entity known as “the estate.” As the executor (if there was a will) or administrator (if there wasn’t), your job is to manage that business. This includes keeping the lights on and the taxes paid.

In Texas, property taxes are considered a priority debt. This means that before you start distributing heirlooms or cash to beneficiaries, you have a fiduciary duty—a legal obligation—to make sure the property taxes are covered. You should be using funds directly from the deceased’s bank accounts or the estate’s newly opened account to pay these bills.

This is a critical distinction: generally speaking, you do not need to pull out your personal checkbook. If the estate has money, the estate pays the bill. You are simply the person signing the check on behalf of the estate.

When Do Heirs Become Responsible?

So, when does the burden shift from the estate to the individual heirs? That usually happens the moment the title is legally transferred. Once the probate judge signs off on the distribution and the deed is recorded in your name, those tax bills become your personal responsibility moving forward.

There is a tricky “gray area” for families dealing with intestacy—that is, when someone dies without a will. In these cases, you might be dealing with an affidavit of heirship rather than a formal executor. If you are living in the home or effectively taking it over as “heir property” before the legal paperwork is fully finalized, the county tax assessor will eventually look to you to keep the account current.

The other major exception is if the estate is “insolvent,” meaning it owns the house but has zero cash in the bank. If there is no money to write that tax check, the heirs often have to step in voluntarily and pay out-of-pocket to prevent the county from foreclosing. If you do this, keep careful records; you may be entitled to reimbursement from the estate later if the house is sold.

Deadlines and Penalties: What Happens if You Don’t Pay?

If you are reading this today—February 2, 2026—and the taxes for 2025 haven’t been paid yet, you need to act fast. The standard deadline in Texas is January 31.

As of February 1, the account is technically delinquent. Texas law hits you immediately with a 7% increase on the total bill (a 6% penalty plus 1% interest). That isn’t a small fine; on a typical tax bill, that can effectively be hundreds of dollars added overnight. The penalties ramp up every month the bill sits unpaid.

The real danger zone approaches on July 1st. If the taxes remain unpaid by then, the county usually hands the debt over to collection attorneys. This instantly tacks on an additional penalty of roughly 20% to cover legal fees. That can turn a manageable $5,000 tax bill into a $6,500+ crisis very quickly. While opening probate can sometimes force the taxing units to file a claim before they can foreclose, it doesn’t necessarily stop the interest and penalties from stacking up in the background.

Navigating Homestead Exemptions During Probate

One of the biggest shocks for heirs is seeing the tax bill jump significantly the year after a parent passes away. This happens because the Homestead Exemption—which caps how much the taxable value can rise and lowers school taxes—does not automatically stick to the house forever. It is tied to the person, not the property.

Generally, the exemption expires at the end of the year in which the owner died. If you inherit the home and plan to live there, you must re-apply for the exemption in your own name. You cannot simply ride on your parents’ exemption indefinitely.

However, there is good news for “heir property” owners—those who inherited a house alongside siblings or other relatives. Thanks to Senate Bill 1943, which passed a few years ago, you can now qualify for the full 100% homestead exemption on your primary residence even if you only own a partial share of the house (e.g., 25%), provided you are the one living there and paying the taxes. Before this law, heirs were often stuck paying higher taxes because they couldn’t show clear title to the whole property.

The Trap of the ‘Over-65’ Tax Deferral

If your parent was over 65 or disabled, they might have utilized a “tax deferral” affidavit. This allows seniors to stop paying property taxes without losing their home. It sounds great, but it is effectively a loan from the county that comes due when they pass away.

When the homeowner dies, that deferral ends. The estate is now on the hook for all the back taxes plus accrued interest (usually at 8% per year). This can be a massive shock if you weren’t expecting it.

Heirs typically have a grace period—often 180 days—to settle this debt before the taxing units start foreclosure proceedings. If you are planning on selling an inherited home, the title company will require this entire deferred amount to be paid off at closing from the proceeds.

What If the Estate Has No Money?

We see this scenario often: the family inherits a beautiful home that is paid off, but the deceased left no cash savings to pay the property taxes or the insurance. You are “house-rich but cash-poor.”

If you are the executor, you have a few options, but none are painless:

• Sell the Home: This is the most common route. You list the property, and the taxes are paid at closing from the buyer’s funds.
• Heir Contribution: If the family wants to keep the house, the heirs can chip in cash relative to their ownership share. If there are three siblings, each puts in a third of the tax bill.
• Property Tax Loans: There are private lenders who will pay the taxes for you in exchange for a lien on the property. Be very careful here; the interest rates and fees can be high. This should usually be a last resort.

If you simply ignore the taxes, the county can eventually sue to foreclose. The property could be “struck off” (sold at auction), meaning the heirs lose the asset entirely.

Frequently Asked Questions