El Paso Property Tax Payment Plans & Deferral Options
Struggling to pay your property taxes? Discover all the payment plans, deferral programs, and relief options available to El Paso homeowners before facing tax foreclosure.
Property taxes in El Paso County are among the highest in Texas, with combined rates often exceeding 2.5% of your home's assessed value. For many homeowners, this translates to annual tax bills of $5,000, $8,000, or even more—a significant financial burden that can quickly become overwhelming when unexpected hardships arise.
The good news is that Texas law provides several options for homeowners who are struggling to pay their property taxes. From installment payment plans to complete tax deferrals for qualifying individuals, understanding these programs can mean the difference between keeping your home and facing tax foreclosure proceedings.
This comprehensive guide will walk you through every payment plan and deferral option available to El Paso property owners, helping you find the right solution for your specific situation.
Understanding Property Tax Delinquency in Texas
In Texas, property taxes are due on January 31st of each year. If you fail to pay by this deadline, your taxes become delinquent on February 1st, and penalties and interest begin to accrue immediately. Understanding this timeline is crucial because the costs add up quickly:
Penalty and Interest Schedule
| Month | Penalty | Interest | Total Added |
|---|---|---|---|
| February | 6% | 1% | 7% |
| March | 7% | 2% | 9% |
| April | 8% | 3% | 11% |
| May | 9% | 4% | 13% |
| June | 10% | 5% | 15% |
| July+ | 12% | 6%+ (1%/mo) | 18%+ plus attorney fees |
After July 1st, an additional 20% collection fee is typically added when the account is turned over to a delinquent tax attorney. This means a $6,000 tax bill could quickly balloon to over $8,500 if left unpaid for just six months. For homeowners already struggling with overwhelming property tax debt, these additional costs can feel insurmountable.
Property Tax Payment Plan Options
Texas Tax Code Section 33.02 allows taxing units to enter into payment agreements with property owners who owe delinquent taxes. Here are the primary payment plan options available to El Paso homeowners:
1. Standard Installment Agreement
The most common option for delinquent taxpayers is a standard installment agreement with the El Paso County Tax Office. These agreements allow you to pay off your tax debt over time while preventing foreclosure proceedings.
Key Features:
- Payment terms typically range from 12 to 36 months
- Down payment of 10-25% usually required
- Interest continues to accrue at 1% per month
- Stops foreclosure proceedings while in good standing
- Available for both current and prior year taxes
To qualify, you must demonstrate an inability to pay the full amount and agree to keep current on future tax payments. Missing a payment can result in default and resumption of collection activities.
2. Over-65 or Disabled Homeowner Installment Plan
Texas law provides special protections for homeowners who are 65 years or older, or who are disabled. Under Tax Code Section 33.02, these individuals have an automatic right to enter into a payment plan for delinquent taxes on their homestead.
Special Benefits:
- Taxing units must offer a payment plan (not discretionary)
- Minimum of 24 equal monthly installments
- Can extend up to 36 months in some cases
- No down payment required by law
- Foreclosure lawsuit cannot be filed while agreement is in effect
If you qualify for the over-65 or disabled homestead exemption, you should already be receiving significant property tax relief. However, if you've fallen behind, this installment plan provides an additional safety net.
3. Quarter Payment Option (Split Payment)
For homeowners who aren't yet delinquent but anticipate difficulty paying their full tax bill by January 31st, Texas offers a quarter payment option that allows you to split your current year taxes into four installments.
Payment Schedule:
- 1st Quarter: Due January 31st (25% of total)
- 2nd Quarter: Due March 31st (25% of total)
- 3rd Quarter: Due May 31st (25% of total)
- 4th Quarter: Due July 31st (25% of total)
This option is available to homeowners 65 or older, disabled individuals, disabled veterans, and those receiving certain agricultural exemptions. You must apply before February 1st to use this option.
Property Tax Deferral Programs
Unlike payment plans that require regular monthly payments, tax deferral programs allow qualifying homeowners to postpone paying property taxes entirely until a later date—typically when the home is sold or the owner passes away. These programs can provide significant relief for those on fixed incomes.
Over-65 Homestead Tax Deferral
Texas Tax Code Section 33.06 allows homeowners who are 65 years or older to defer (postpone) paying property taxes on their homestead indefinitely. This is one of the most powerful protections available to senior homeowners.
How It Works:
- File an affidavit with the El Paso Central Appraisal District (EPCAD)
- Once filed, all taxing units must honor the deferral
- Taxes continue to accrue with 8% annual interest
- No foreclosure can occur while deferral is in effect
- Deferred taxes become due when property is sold or owner no longer qualifies
Important: While the deferral prevents foreclosure, the deferred taxes plus interest create a lien on your property. This can significantly reduce the equity available to you or your heirs when the home is eventually sold.
Disabled Homeowner Tax Deferral
The same deferral option available to seniors is also available to homeowners who are disabled, regardless of age. This includes individuals receiving disability benefits from Social Security or those who meet the definition of disabled under Texas law.
Eligibility Requirements:
- Must own and occupy the property as your homestead
- Must be unable to engage in substantial gainful activity due to physical or mental impairment
- Condition must be expected to last at least 12 months or result in death
- Documentation from physician or Social Security may be required
Disabled Veteran Tax Deferral
Disabled veterans have access to the same deferral options, plus additional exemptions that can significantly reduce or even eliminate their property tax burden. For military families in the Fort Bliss area, understanding these benefits is essential.
Veteran-Specific Benefits:
- 100% disabled veterans may qualify for complete property tax exemption
- Partial exemptions available based on disability rating (10%-90%)
- Surviving spouses may continue to receive exemption benefits
- Can be combined with deferral for maximum protection
How to Apply for Payment Plans and Deferrals
The application process varies depending on which program you're applying for. Here's a step-by-step guide for each option:
For Standard Payment Plans:
- 1Contact the El Paso County Tax Office
Call (915) 546-2109 or visit their office at 500 E. San Antonio Ave, Suite 103
- 2Provide Required Documentation
Bring proof of identity, property ownership, and financial hardship documentation
- 3Negotiate Terms
Work with the tax office to establish payment amount and schedule
- 4Sign the Agreement
Review and sign the formal payment agreement
- 5Make Your Down Payment
Pay the required down payment to activate the agreement
For Tax Deferrals (Over-65 or Disabled):
- 1Obtain the Deferral Affidavit Form
Download from EPCAD website or pick up at their office at 5801 Trowbridge Dr.
- 2Complete the Affidavit
Fill out all required information and have it notarized
- 3Provide Supporting Documentation
Include proof of age (driver's license, birth certificate) or disability documentation
- 4File with EPCAD
Submit the completed affidavit to the appraisal district
- 5Receive Confirmation
EPCAD will notify all taxing units of your deferral status
Weighing Your Options: Pros and Cons
Each option has advantages and disadvantages. Understanding these can help you make the best decision for your situation:
Payment Plans
Advantages
- Stops foreclosure proceedings
- Spreads payments over manageable timeframe
- Debt is fully paid off at end of term
- No long-term lien on property
Disadvantages
- Requires regular monthly payments
- Interest continues to accrue
- Default can restart foreclosure
- Down payment often required
Tax Deferrals
Advantages
- No monthly payments required
- Complete foreclosure protection
- Preserves cash flow for other needs
- Can remain in home indefinitely
Disadvantages
- 8% annual interest accumulates
- Creates growing lien on property
- Reduces equity for heirs
- Full amount due when property sells
When Selling Your Home Makes More Sense
While payment plans and deferrals can provide temporary relief, they're not always the best long-term solution. In some situations, selling your property may be the smarter financial decision. Consider selling if:
Multiple Years of Back Taxes
If you owe several years of delinquent taxes, the accumulated penalties and interest may exceed what you can realistically pay off.
Property Needs Major Repairs
If your home needs expensive repairs you can't afford, selling as-is to a cash buyer may be your best option.
Home Is Too Large or Expensive
If your property taxes are unaffordable because your home is larger than you need, downsizing could provide financial relief.
Relocating or Inherited Property
If you've inherited a property you don't want or need to relocate, selling quickly can eliminate ongoing tax obligations.
Working with reputable cash home buyers in El Paso can help you sell quickly—often in as little as 7-14 days—and walk away with cash in hand after paying off your tax debt. This approach eliminates the stress of ongoing payments and gives you a fresh financial start.
If you're also struggling with mortgage payments, selling may be especially attractive. A cash sale can help you avoid both tax foreclosure and mortgage foreclosure while preserving whatever equity remains in your home.
Frequently Asked Questions
Can I get a payment plan if I'm already in foreclosure?
Yes, in most cases. Even if a tax foreclosure lawsuit has been filed, you may still be able to negotiate a payment plan with the taxing units or their attorney. However, you'll likely need to pay any legal fees that have accrued in addition to the taxes, penalties, and interest. The sooner you act, the more options you'll have.
What happens if I miss a payment on my installment agreement?
Missing a payment can result in default of your agreement. Typically, you'll receive a notice giving you a short period (often 10-30 days) to cure the default. If you don't catch up, the taxing unit can terminate the agreement and resume collection activities, including foreclosure. If you anticipate difficulty making a payment, contact the tax office immediately to discuss options.
Can I defer taxes on a rental property or second home?
No. Tax deferrals under Section 33.06 are only available for your primary homestead—the property where you live. Rental properties, vacation homes, and investment properties do not qualify. If you're having trouble with taxes on a rental property, a standard payment plan or selling the property may be your best options.
How long can I defer my property taxes?
If you qualify for the over-65 or disabled deferral, you can defer taxes indefinitely—as long as you continue to own and occupy the property as your homestead. The deferred taxes (plus 8% annual interest) become due when you sell the property, move out, or pass away. Your heirs will be responsible for paying the accumulated taxes from the estate.
Will a payment plan or deferral affect my credit score?
Property tax delinquencies are not typically reported to credit bureaus, so they don't directly affect your credit score. However, if a tax lien is filed against your property, it becomes a public record that could appear on background checks. Additionally, if you're trying to refinance or sell your home, the tax debt will need to be addressed.
Can I protest my property value while on a payment plan?
Absolutely. Being on a payment plan doesn't affect your right to protest your property's appraised value with EPCAD. In fact, successfully lowering your assessed value can reduce your future tax bills, making it easier to stay current. The protest deadline is typically May 15th or 30 days after you receive your appraisal notice.
What if I qualify for exemptions I haven't been receiving?
If you discover you qualify for exemptions you haven't been receiving (such as the homestead exemption, over-65 exemption, or disabled veteran exemption), apply immediately. In some cases, you may be able to receive retroactive exemptions for up to two years. This could significantly reduce your current tax debt and future obligations.
Can I sell my house if I have deferred taxes?
Yes, you can sell your home at any time, even with deferred taxes. However, all deferred taxes plus accumulated interest must be paid from the sale proceeds at closing. If you're considering selling, it's important to know exactly how much you owe so you can determine if you'll have equity remaining after paying off the tax debt.
Related Resources
Why Are Property Taxes So High in El Paso?
Understand the factors driving El Paso's high property tax rates and what you can do about it.
Texas Homestead Exemptions Guide
Learn about all the exemptions available to reduce your property tax burden.
How to Avoid Foreclosure
Comprehensive guide to preventing both tax and mortgage foreclosure in Texas.
How to Sell Your House Fast in El Paso
Options for selling quickly when you need to resolve tax debt or other financial issues.
Need Help With Property Tax Debt?
Whether you're looking for payment plan guidance or considering selling your property to resolve tax issues, we're here to help. Get a free, no-obligation consultation today.