Texas Tax Deed Sales: Redemption Rights, Premiums and Excess Proceeds

Last updated November 14, 2026. Citations come from the Texas statutes and official agency pages linked in Sources. Where we could not confirm something on an official page, we say so.

After a Texas tax sale, a former owner of a homestead can redeem the property on or before the second anniversary of the purchaser’s deed filing, but must pay a premium of 25 percent in the first year and 50 percent in the second. Other property has only 180 days, and the premium cannot exceed 25 percent. These rules come from Tax Code Chapter 34.

When and where tax sales happen

A sale (other than an online public auction) takes place between 10 a.m. and 4 p.m. on the first Tuesday of a month, or the first Wednesday if the first Tuesday is January 1 or July 4 (Sec. 34.01(r-1)).

Online public auctions can begin any time and must conclude at 4 p.m. on the first Tuesday (Sec. 34.01(r-2)). Sales occur at the county courthouse unless the commissioners court designates another nearby public place or online (Sec. 34.01(r)).

What the sale does

• If no sufficient bid is received, the officer bids the property off to the taxing unit for the lesser of the judgment amount or market value, and the unit’s title is subject only to the defendant’s right of redemption (Sec. 34.01(j) and (k)).
• A sale to someone other than a taxing unit extinguishes the liens for the taxes, penalties and interest in the judgment. It does not affect personal liability for amounts the proceeds did not cover (Sec. 34.01(q)).
• Tax-sale deeds are filed with the county clerk (Sec. 34.01(m)).

Your right of redemption

Homestead or agricultural-use property sold to a buyer other than a taxing unit: redeem on or before the second anniversary of the date the purchaser’s deed is filed for record. You pay the bid amount, the deed recording fee, taxes, penalties, interest and costs the purchaser paid, plus a premium of 25 percent of the total in year one or 50 percent in year two (Sec. 34.21(a)).

Other property: redeem not later than the 180th day after the deed is filed, with a premium that cannot exceed 25 percent (Sec. 34.21(e)). Homestead property bid off to a taxing unit has the two-year period too (Sec. 34.21(b) and (c)).

Redemption does not give the former owner use, possession or rents during the period, and the right cannot be transferred. Any instrument that purports to transfer it is void (Sec. 34.21(h) and (l)). You can request an itemization of costs, which the purchaser or collector must deliver within 10 days (Sec. 34.21(i)).

Resale, excess proceeds and challenges

• A taxing unit that bought the property can resell it at any time by public or private sale, subject to redemption, and the redemption period starts when the deed to the unit is filed (Sec. 34.05). An action attacking the validity of a resale must be brought within one year (Sec. 34.05(f)).
• The clerk holds excess sale proceeds for two years after the sale. A claim must be filed before the second anniversary. An attorney’s fee to obtain excess proceeds cannot exceed the lesser of 25 percent or $1,000, and non-attorneys cannot charge a fee (Secs. 34.03 and 34.04).
• To challenge a tax sale’s validity, you must deposit the taxes, penalties, interest and costs into the court registry or file an affidavit of inability to pay (Sec. 34.08).

We did not open Chapter 33 on the judgment suits that come first, or county practices. Selling the house before the sale date can pay the taxes and protect your equity. See the Texas property tax guide.

How to sell a house in Texas when a tax sale is possible

1. Ask the tax office for the amount due in the month you expect to close, including any penalty, interest and attorney fee if the account is delinquent.
2. Give that figure to the title company. Taxes are paid from the sale proceeds at closing, ahead of what you take home.
3. Compare offers on what you actually net after taxes, repairs, commissions and closing costs.
4. If time matters, ask for a written cash offer with a closing date you choose. We buy houses as-is, with no repairs and no agent commission. See how we buy houses in Texas.

Texas tax deed sales FAQ

How long do I have to redeem a homestead after a tax sale?

Until the second anniversary of the date the purchaser's deed is filed, with a 25 percent premium in year one and 50 percent in year two (Tax Code Sec. 34.21(a)).

How long for other property?

Not later than the 180th day after the deed is filed, with a premium of no more than 25 percent (Sec. 34.21(e)).

When are tax sales held?

The first Tuesday of the month between 10 a.m. and 4 p.m., or the first Wednesday if the first Tuesday is January 1 or July 4 (Sec. 34.01(r-1)).

Can I get money left over after a tax sale?

The clerk holds excess proceeds for two years, and a claim must be filed before the second anniversary of the sale (Sec. 34.03).

Sources

• Texas Property Tax Code, Chapter 34 (Sale of property)

This guide is general information, not legal or tax advice. Laws, forms and fees change, so confirm details with the official office or a Texas attorney or tax professional.