Overdue property taxes? Texas property tax loans can help you get back on track

For the vast majority of Texas property owners, whether we are talking about residential or commercial properties, paying taxes can be a major stress factor – and that’s because Texas has one of the highest tax rates in the US. On average, property owners have to pay 1.69% of its assessed value in taxes, which is well above the national 1.07% average. That can add up to quite a lot, so it doesn’t come as a surprise that many Texas businesses and residents struggle to pay the taxes in time. But, while having overdue property taxes may seem inevitable, it will not help your finances in the long run because the fees will add up and put you in a tight spot. Instead, if you’re worried about your tax situation, a specialized Texas property tax loan may be a better idea.

The danger of overdue property taxes

It’s been a difficult year for the state of Texas, as homeowners and business owners alike struggled to cope with economic uncertainty. Unemployment, budget cuts, reduced paychecks, these are all issues that have affected people’s finances, and having to pay a hefty tax on residential property can feel like yet another difficult responsibility.

When money is tight, delaying payment of the Texas property tax may seem like a simple way out, at least for a few months. However, this can lead to more problems than solutions. The due date for the property tax is January 31 but, if you still can’t pay the tax by that time, your local authorities will charge you a 6% late fee. Plus, for every month of delayed payment, the state will charge an additional 1%.

If you still haven’t paid the tax by July, the base fee grows from 6% to 12%. And it doesn’t end here. If the court decides to pursue legal action to recover the property taxes for you, then you may be charged the attorney fees. When we do the math, you’ll have to pay nearly double if you delay paying the tax for just six months, which can be financially crippling and even put you at risk of bankruptcy. This is where Texas property tax loans can help.

How can a property loan help?

Although delaying payment on the Texas property tax may seem like a good short-term solution, things can quickly spiral out of control. Unless you know for sure that you can pay the overdue tax in the following months, the best course of action is to fulfill your tax obligations by taking out a loan. Texas property tax loans were created especially for business owners and homeowners who need financial assistance so that you don’t have to worry about state fees and penalties. And, because no two businesses or homeowners are the same, the plans are personalized, and you can pay the loan back in low monthly instalments. This way, you have more control over your finances and avoid getting stuck in a catch-22 situation where you can’t pay the tax because of overdue fees.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes