Texas Tax Sale Redemption Payoff Calculator

If the former owner redeems, they repay what you put in — your winning bid, the deed recording fee, and any taxes you paid after the sale — plus a redemption premium of 25% or 50% on that total. Texas is a penalty state, so the premium is flat: it is the same whether they redeem in month one or month five. Enter your numbers below to see the exact payoff.

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Typically around $50 — use your actual receipt.

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Leave at 0 if you have not paid a tax bill yet.

Most properties have a 6-month redemption period. Homestead, agricultural, and mineral properties have 2 years.

Used only for the annualized figure.

Owner pays you

$12,562.50

Your profit (25% premium)

$2,512.50

Annualized return

60%

How that number is built

  • Your winning bid$10,000.00
  • Deed recording fee$50.00
  • Taxes you paid after the sale$0.00
  • Redemption premium (25% of $10,050.00)$2,512.50
  • Total the owner pays to redeem$12,562.50

Estimate only. The premium is flat — it does not pro-rate, so it is the same whether the owner redeems in month one or month five. This tool calculates the payoff, not the deadline: confirm your exact redemption date with the county tax office before you count on it.

Where the Texas deals actually are

LienSuite tracks 402,737 tax-delinquent properties across 62 Texas counties. These are the counties with the most delinquent records right now — the pool the next redeemable-deed sale comes out of.

Counts are aggregated from county tax-office and appraisal-district sources and refreshed as each county roll is re-ingested. Delinquency data is a moving target — treat these as current floors, not frozen totals.

A worked example

You win a commercial parcel for $10,000 and pay a $50 deed recording fee. You have not paid a tax bill yet. Five months later the former owner redeems.

  • Your money in: $10,050
  • 25% redemption premium on $10,050: $2,512.50
  • Total you receive: $12,562.50 — a $2,512.50 profit
  • Annualized at five months: roughly 60%

The same parcel with a homestead exemption sits in the 2-year window instead. Redeemed in year two, the premium is 50% — $5,025 on the same $10,050.

Questions investors ask

What is the Texas redemption premium, 25% or 50%?

Texas is a penalty state, not an interest state. The redemption price includes a 25% penalty for a redemption inside the 6-month window, or 25% in year one and 50% in year two for property with a 2-year window.

How long is the redemption period on a Texas tax sale?

Most properties have a 6-month redemption period. Homestead, agricultural, and mineral properties have 2 years. Confirm your exact date with the county tax office before you rely on it — see the redemption period lookup for all 50 states.

Does the penalty shrink if the owner redeems early?

No. A penalty is a flat percentage owed the moment the owner redeems — it does not pro-rate, so a 25% Texas penalty is the same whether they redeem in month 1 or month 5. That is why an early redemption produces a very high annualized return.

What happens if nobody redeems?

You keep the property instead of the premium. Many owners never redeem, which is why the payoff figure is a comparison tool rather than a promise — model both outcomes before you bid.

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