How do I start tax sale investing in Texas?

Learn the system first: Texas sells redeemable tax deeds under Texas Tax Code Chapter 33 (Delinquency) and Chapter 34 (Tax Sales and Redemption), esp. §§34.01, 34.21. Register with the county or its auction platform before the sale, post any required deposit, research each parcel in the property appraiser and clerk records, and set your max number before bidding.

Texas Tax Sale Investing Guide — Buy the deed — but the owner gets a window

Investing guides / Texas

Texas tax sale investing: buy the deed — but the owner gets a window

Quick answerTexas sells redeemable tax deeds for unpaid property taxes. Lien buyers can earn 25% redemption premium in year 1, 50% in year 2 — flat premium on the aggregate (bid + deed fee + taxes/penalties/interest/costs paid by buyer), not annual interest. Year-2 50% rate applies only to homestead, agricultural, and mineral property; other property is capped at 25% (Tex. Tax Code §34.21). Redemption: 2 years from the date the purchaser's deed is filed for record for residence homestead, agricultural land, and mineral interests; 180 days from deed recording for all other property (§34.21) Sales: Sheriff/constable sales on the first Tuesday of every month Governing law: Texas Tax Code Chapter 33 (Delinquency) and Chapter 34 (Tax Sales and Redemption), esp. §§34.01, 34.21.

How it works in Texas

In Texas you buy a redeemable deed: you take the property at the sale, but the former owner can redeem it during the statutory window by paying you the statutory penalty.

Interest / penalty: 25% redemption premium in year 1, 50% in year 2 — flat premium on the aggregate (bid + deed fee + taxes/penalties/interest/costs paid by buyer), not annual interest. Year-2 50% rate applies only to homestead, agricultural, and mineral property; other property is capped at 25% (Tex. Tax Code §34.21)

Redemption: 2 years from the date the purchaser's deed is filed for record for residence homestead, agricultural land, and mineral interests; 180 days from deed recording for all other property (§34.21)

When sales happen: Sheriff/constable sales on the first Tuesday of every month

Where sales run: Mostly in-person on courthouse steps; a growing minority online via RealAuction, GovEase, MVBA Online Auction, and Linebarger Goggan (LGBS) county portals — platform is county-specific

Governing law: Texas Tax Code Chapter 33 (Delinquency) and Chapter 34 (Tax Sales and Redemption), esp. §§34.01, 34.21

The investor's edge

Your edge is penalty math: model both outcomes — redemption (you earn the penalty) and keeping the property (you earn the equity) — and only bid where both outcomes work.

Buyer receives a sheriff's/constable's deed immediately but title is subject to redemption; the 25% premium is owed even if redeemed on day 1, making quick redemptions highly profitable. Premium bidding — excess over minimum bid does not change the premium percentage.

Never check Texas county lists by hand again

LienToDeed watches the published lists and texts you the moment new Texas properties are listed — scored, with your max number. Free calendar and laws for every state.

Get Texas alerts

Full legal reference: Texas tax sale laws. Verified 2026-10-30 against the sources on that page. Educational only, not investment advice.