How long is Texas tax-sale redemption?
Under Texas Tax Code §34.21, the window is generally 2 years for residence homestead or agricultural property and 180 days for other property. Confirm property classification and deed dates with the county.
Texas Tax Deed Sales: Redemption Period, Premiums & Bid Example
Texas tax-sale redemption depends on property type. Under Texas Tax Code §34.21, a residence homestead or agricultural property is generally redeemable for 2 years, while other property is generally redeemable for 180 days. Investors must price the statutory premium, holding time, and title uncertainty into the bid.
Redemption window
Generally 2 years for residence homestead or agricultural property, and 180 days for other property. Source: Texas Tax Code §34.21.
Next step
Texas tax deed process
- 1. Taxing unit obtains a judgment and the property is sold to satisfy delinquent taxes.
- 2. Purchaser receives a deed subject to any statutory redemption right.
- 3. Former owner may redeem by paying the statutory amount and premium during the window.
- 4. Investor models the holding period and premium risk before bidding.
Worked bid example
Assume ARV is $220,000, repairs are $45,000, closing and holding costs are $18,000, and you need a $35,000 margin. A basic ceiling is $122,000. If the property is redeemable for 2 years, discount further for taxes, insurance, and capital tied up during the redemption window.
FAQ
What premium does a Texas tax-sale purchaser receive if the owner redeems?
The statute sets redemption amounts and premiums that vary by property type and timing. Read §34.21 and confirm the county's calculation before relying on a return number.