Tax Sale vs. Foreclosure in Texas: What's the Difference?

Short answer: In Texas, a tax sale happens when property taxes go unpaid and a taxing unit gets a court order or warrant; an officer sells the property at public auction, usually for no less than the lesser of its market value or what is owed. A mortgage foreclosure happens when a loan secured by a deed of trust is in default; the lender's trustee sells it at public auction on the first Tuesday of a month after at least 21 days' notice. The biggest practical difference is redemption: after a tax sale the former owner can buy the property back, within two years for a homestead or agricultural land and within 180 days for other property, by paying the bid plus a premium. The deed-of-trust sale rules in Property Code Chapter 51 do not include a buy-back right like that one.

People often use "tax sale" and "foreclosure" as if they mean the same thing, and in Texas they look alike from the outside: both end with a public auction at the county courthouse. Underneath, they are two different processes with different rules. If you own Texas land or a house and are behind on taxes or a loan, knowing which one you face tells you how much time you have and what can still be undone.

This article is general information for Texas property owners. It is not legal advice. Talk to a Texas attorney about your situation.

What a tax sale is

A tax sale happens when property taxes go unpaid long enough that a taxing unit, such as the county or school district, gets a court order or a warrant to sell the property. Texas Tax Code Section 34.01 sets the rules. An officer conducts the sale, usually at the county courthouse, in the same manner as property sold under execution. A commissioners court can also allow public auctions with online bidding.

Three details matter to an owner:

• When. In-person sales run from 10 a.m. to 4 p.m. on the first Tuesday of a month, or the first Wednesday if that Tuesday is January 1 or July 4. Online auctions must close at 4 p.m. on the sale day.
• Notice. Written notice goes to each defendant or their attorney, and the sale is advertised. Where no qualifying newspaper exists, the officer posts notice in three public places, including the courthouse door, at least 20 days before the sale.
• Minimum bid. Generally, the property may not be sold for less than the lesser of the market value in the order or warrant, or the total taxes, penalties, interest, costs and other claims. If no one bids enough, the property can be bid off to a taxing unit.

To see what you owe and whether a suit has been filed, start with our guide on how to look up property taxes owed in Texas. For the steps that lead up to a sale, see the Texas property tax sale, step by step.

What a foreclosure is

A foreclosure, in the sense most Texans mean, is a lender selling property because a loan secured by a deed of trust is in default. When a loan is secured by a deed of trust with a power of sale, the trustee can sell without going to court. Texas Property Code Section 51.002 sets the rules:

• When and where. A public auction between 10 a.m. and 4 p.m. on the first Tuesday of a month, at the area of the county courthouse the commissioners court designates (or a nearby public place it designates).
• Notice of sale. At least 21 days before the sale, notice must be posted at the courthouse door, filed with the county clerk, and sent by certified mail to each debtor.
• Chance to cure, for a residence. Before the notice of sale, the servicer must send a debtor in default on a home-residence lien a certified notice giving at least 20 days to cure the default.

The biggest difference: getting the property back

After a tax sale, the former owner has a statutory right of redemption. Tax Code Section 34.21 says:

• For a residence homestead or land designated for agricultural use, the owner may redeem on or before the second anniversary of the date the purchaser's deed is recorded. The premium is 25 percent of the total in the first year and 50 percent in the second year.
• For other real property, the owner may redeem within 180 days after the deed is recorded, and the premium owed to a private purchaser may not exceed 25 percent.
• The total includes the purchaser's bid, the deed recording fee, and the taxes, penalties, interest and costs the purchaser paid. An owner can ask for a written itemization, which must be sent within 10 days.
• Redemption does not let the former owner keep possession or collect income from the property while the right exists.

The rules for a foreclosure sale under a deed of trust in Property Code Chapter 51 do not include a buy-back right like the one in Section 34.21. Other kinds of foreclosure, such as by a property owners' association, have their own rules, so ask a Texas attorney what applies after a sale. For a deed-of-trust foreclosure, that is why the weeks before a foreclosure sale matter so much: the 20-day cure period and the 21-day notice are the window.

Side by side

Your options before a sale date

Until the sale happens, the property is still yours to deal with. Common options are paying what is owed, asking about an installment agreement for taxes, working out a plan with the lender, or selling the property. If you sell, the taxes or loan are paid from the proceeds at closing, and anything left goes to you. Our guide on selling land with back taxes walks through how that works.

Whatever you choose, start early. A title company needs payoff figures from the tax office or the lender, and those take time. If you are dealing with a mortgage on a home, a HUD-approved housing counselor or a Texas attorney can tell you what applies to you.

If selling is the option you want to compare, you can ask us for a cash offer. It comes in writing, with no obligation, and you decide.

Common questions

What is the difference between a tax sale and a foreclosure in Texas?

A tax sale is for unpaid property taxes: a taxing unit gets a court order or warrant and an officer sells the property at auction. A foreclosure is for an unpaid loan secured by a deed of trust: the lender's trustee sells it at auction. The notice rules, the minimum bid and the owner's right to buy the property back are different.

When are tax sales and foreclosure sales held in Texas?

Both are generally held at the county courthouse between 10 a.m. and 4 p.m. on the first Tuesday of the month, or the first Wednesday if that Tuesday is January 1 or July 4. Counties can also allow online tax auctions that close at 4 p.m.

Can I get my property back after a Texas tax sale?

Often, yes. Tax Code Section 34.21 gives the former owner a right of redemption: up to two years for a residence homestead or land designated for agricultural use, and up to 180 days for other real property, by paying the purchaser's bid and costs plus a premium of up to 25 or 50 percent.

Can I get my house back after a Texas foreclosure sale?

The deed-of-trust sale rules in Property Code Chapter 51 do not include a buy-back right like the one for tax sales, so the time to act is before the sale. Talk to a Texas attorney or a HUD-approved housing counselor as early as possible.

Can I sell my property before a tax sale or foreclosure?

Usually, yes, until the sale happens. The taxes or the loan are paid off from the sale proceeds at closing. Start early, because a title company needs time to get payoff figures and close.

Sources

• Texas Tax Code, Section 34.01 (tax sale procedure)
• Texas Tax Code, Section 34.21 (right of redemption)
• Texas Property Code, Section 51.002 (sale of real property under a deed of trust)

Each source was opened and read on October 19, 2026. Rules and rates change: check the source for the current version.

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