Allen Markel, REALTOR® · Texas Premier Realty

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Are property taxes paid in arrears in Harris County?

Answered by Allen Markel, REALTOR®, Texas Premier Realty ·

Short answer

Yes. Texas property tax is billed after the year ends: the bill for a calendar year goes out in October or November of that year, is due when received, and becomes delinquent after January 31 of the following year. At a closing, the seller's share for the days owned in the year is usually credited to the buyer. On a $320,000 home at the 2.25% median rate, closing on September 30 puts about $5,400 of the year's $7,213 tax on the seller.

What does arrears mean here?

Tax is assessed for the calendar year based on the January 1 value and rates adopted in the fall, and the bill is issued in October or November. It is due when received, and the bill becomes delinquent if unpaid after January 31 (Tax Code section 31.02). Whoever owns the home on the delinquency date is responsible to pay the whole year's bill, even if the home changed hands during the year. If the bill is late, penalty and interest apply beginning in February and grow each month, so verify the current schedule with the Harris County Tax Office. Mortgage servicers usually pay from an escrow account, so many owners never see the bill. The practical effect for a buyer is a bill that arrives after possession. A buyer who closes in March will receive the whole year's bill in October, so the seller's credit at closing is what covers the first three months, and the lender's escrow is set up to collect the rest over the following months. Missing the January 31 date is a common reason for penalty and interest, so confirm who pays the bill when a sale falls near year-end.

How does a closing handle it?

The contract (paragraph 13) prorates the year's tax between buyer and seller through the closing date, and the title company usually does the arithmetic from the current or prior year's bill. For a September 30 closing (273 days), the seller's share is 273/365 of the year. Using $7,213 as the annual tax, that is $5,395, shown as a credit to the buyer, who then pays the full bill in the fall. If the current year's rates are not yet set, the title company uses an estimate and the parties may agree to re-prorate later. A buyer's lender also collects a tax escrow at closing. Read the settlement statement lines, and ask the title company how it estimated the tax. Some homeowners pay the bill directly. The tax office accepts payment online, by mail and in person, and some owners qualify for installment options, which is a question to ask the office. Property tax is separate from the annual homeowner's association dues and the MUD district's own bills, if any; a home in a district may also receive a separate water bill, which is not a tax bill.

Amounts and rules change every year. For the most current and accurate answer, contact the county office directly: the Harris County Tax Assessor-Collector (hctax.net, 713-274-8000) for tax bills and payments.

Example: seller's share of the tax at closing (annual tax $7,213)
Closing dateDays owned by sellerSeller's shareBuyer's share
March 3190$1,779$5,434
June 30181$3,577$3,636
September 30273$5,395$1,818
December 15349$6,897$316
Sources: Arithmetic on the Harris County median tax ($320,000 x 2.254%); due dates per Texas Tax Code sec. 31.02; proration per paragraph 13 (Prorations) of the TREC One to Four Family Residential Contract, form 20-19. (data as of September 25, 2026)

Common follow-up questions

When are Harris County property taxes due?

When the bill is received, and delinquent after January 31.

Who pays the tax when a house sells mid-year?

The contract prorates it between seller and buyer at closing.

Are taxes in my mortgage payment?

If your lender collects escrow, the tax portion is included in your monthly payment.

Sources

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Answers describe transactions and public data. They are not legal, tax or financial advice.