Understanding El Paso Property Taxes When Selling Your Home

When you sell a home in El Paso, property taxes are prorated at closing - you pay taxes from January 1 through your closing date, and the buyer picks up the rest. Your homestead exemption ends on the day you sell. If you have an unpaid tax balance or a tax lien, it must be resolved before closing. Here's everything sellers need to know.

Texas property taxes are paid in arrears - the bill for the current year isn't due until January 31 of the following year. This creates a proration calculation that happens at every real estate closing in El Paso.

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How Property Tax Proration Works at Closing

Because Texas taxes are paid in arrears, neither the buyer nor seller has actually paid the current year's taxes at the time of most closings.

What happens:

1. The title company calculates the number of days in the calendar year you owned the home (January 1 through closing day)
2. That proportion of the estimated annual tax bill becomes a seller credit to the buyer
3. The credit appears on your closing statement as a deduction from your net proceeds
4. The buyer then pays the full year's bill when it comes due

Example: If you close on July 15, you've owned the home 196 of 365 days (53.7%). On a $6,000 annual tax bill, your proration credit to the buyer is approximately $3,220.

Estimated vs. actual: The proration is based on the prior year's tax bill, adjusted for any known rate changes. If EPCAD increases the assessed value after closing, the buyer - not the seller - is responsible for the difference.

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What Happens to Your Homestead Exemption When You Sell

Your homestead exemption terminates on the day you sell. The buyer must apply for their own exemption after closing - they cannot inherit yours.

What this means for your taxes:

• Your Texas homestead exemption removes $100,000 from your home's taxable value for school district purposes
• When you sell, that exemption disappears from the tax roll effective January 1 of the following year
• The new owner pays full tax on the property until they file their own exemption

For sellers: The homestead exemption you enjoyed does not directly affect your closing costs or proration calculation - the title company uses the full assessed value in its calculations anyway.

Timing tip: If you're also buying a new home in Texas, file for homestead exemption on your new primary residence between January 1 and April 30 of the year after you move in.

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Tax Liens: What Sellers Must Know

All Texas property taxes are first-priority liens - they attach to the land itself, not to the owner. If you have delinquent property taxes from any year, that lien must be paid off at or before closing.

The title company will:

1. Order a tax certificate from EPCAD and all taxing authorities
2. Identify any unpaid balances (including penalties and interest, which can be significant on delinquent taxes)
3. Pay them from your sale proceeds at closing

If you have a delinquent tax account: Contact EPCAD early in the listing process to understand your balance. Penalties on delinquent taxes in Texas start at 6% in February and can reach 12% by July, plus attorney fees if the account has gone to collection.

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The Appraisal Protest: Don't Miss the Deadline If You're Selling

If you have a pending appraisal protest with the El Paso County Appraisal Review Board (ARB) when you sell, the outcome of that protest still applies to your tax bill for that year - even after closing.

Practical implication: If you've successfully protested your 2026 appraised value and close before the protest is resolved, your tax proration at closing will be based on the pre-protest value. If the protest later reduces your value, you (or the buyer) may be entitled to a refund.

For most sellers: This is a small detail. But if you have a significant protest pending, flag it for your title company.

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Seller's Disclosure and Taxes

Texas requires sellers to disclose known material issues, but property tax amounts are addressed separately - through the proration mechanism at closing, not the disclosure notice. However, if your home is subject to any special assessments, rollback taxes (common with agricultural exemptions), or tax increment financing obligations, these must be disclosed and resolved.

Rollback taxes: If your property has had an agricultural (ag) exemption and you're selling for development or residential use, you may owe rollback taxes going back up to 5 years. This is primarily relevant for large acreage in the Upper Valley or outlying areas - not typical subdivisions.

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How Property Tax Proration Affects Your Net Proceeds

On a $280,000 sale closing on July 15 with an estimated annual tax bill of $6,426 (see our full property tax guide):

Item	Calculation	Amount
Days seller owned in 2026	196 / 365 = 53.7%	-
Seller tax proration credit to buyer	$6,426 x 53.7%	-$3,451

This $3,451 comes out of your proceeds at closing - on top of commissions and other closing costs. When calculating your net, make sure your estimate includes this proration.

Closing in the first half of the year means a larger proration credit to the buyer (you've owned longer, you credit more). Closing in November or December means a smaller credit (the buyer will owe most of the year).

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Frequently Asked Questions

Who pays property taxes when selling a house in Texas?

Property taxes are prorated at closing. The seller pays (through a credit to the buyer) the portion of the annual tax bill corresponding to the days they owned the property in that calendar year. Neither party "pays" the tax at closing in a traditional sense - the buyer receives a credit and later pays the full bill.

What happens to my over-65 tax freeze when I sell?

The over-65 property tax freeze (which prevents school district taxes from increasing on your homestead) terminates when you sell. The new owner does not inherit the freeze. If the new owner is also over 65, they must apply for their own over-65 exemption and freeze after closing.

Can I sell my home if I have delinquent property taxes?

Yes, but the delinquent taxes (including penalties and interest) must be paid at closing from your proceeds. You cannot transfer a delinquent tax lien to the buyer. The title company will handle this as part of the closing process.

Does the buyer get to keep my homestead exemption?

No. Homestead exemptions are personal - they apply to the owner-occupant. When you sell, your exemption ends. The buyer must apply for their own exemption (Form 50-114) with EPCAD between January 1 and April 30 of the following year.

How do I know my current property tax balance before listing?

Search your account at epcad.org using your property address or account number. You'll see your current assessed value, any exemptions, and whether your account shows a balance due. For delinquent accounts that have gone to a collection attorney, call EPCAD directly - those accounts may have additional fees not visible online.

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Source: El Paso Central Appraisal District (EPCAD). Tax rates based on 2025 data - verify current rates at epcad.org.

John David Peña | License #0733512 | Peña El Paso Realty Group | Brokered by Home Pros Real Estate Group | Broker License #9009766

Related Articles:

• Everything You Need to Know About El Paso Property Taxes
• How Much Does It Cost to Sell a House in El Paso?
• What Happens at Closing When Selling in El Paso?