Anderson County, Texas Tax Sales: What Investors Should Know

When people in Anderson County don’t pay their taxes, the county needs that money. It goes toward schools, roads, and important services. Texas lets counties sell properties that owe back taxes through redeemable tax deed auctions.

In these auctions, the winner gets a share of the property. The original owner can still buy it back later. If they don’t pay by the deadline, the new owner keeps the property.

This article tells how Anderson County runs tax sales. It shares what investors should know about signing up and bidding. You will also learn why investors from all over come to this East Texas county. There are tables, charts, and fun facts to make everything clear.

What is tax lien/deed investing in Texas

Texas doesn’t sell tax lien certificates. Instead, they have a system called redeemable tax deeds. When you buy one, you pay the unpaid taxes and some extra fees. In return, you get a deed with the right to redeem it. The original owner can get their property back by paying you what you spent plus a big penalty. If they don’t pay by the end of a certain time, you can get a regular deed and take the property. Texas has set penalties between 25% and 50%. Because of this, if you do your homework on the property, you can earn good returns with less risk.

Important details (summary table)

Detail	Description
Tax sale type	Redeemable tax deed (no tax lien certificates)
Typical sale date	First Tuesday of each month (moved to Wednesday if on Jan 1 or July 4)
Auction time	10:00 a.m. CST on courthouse steps (sales must be between 10 a.m. – 4 p.m.)
Registration	Required: Bidders must pre-register with a valid photo ID
Redemption period	2 years (homestead/agricultural); 180 days (all other property)
Penalty (interest)	25% of purchase price in year one; 50% in year two
Bidding process	Oral public auction; bids must cover taxes, penalties, and costs; payment due immediately in cash/certified funds
Deposit	None; full payment due by 1:00 p.m. sale day
Redemption premium	Paid to purchaser as return on investment (25% or 50%)

Anderson County’s unique features for tax‑deed investing

Anderson County is in East Texas, sitting between two rivers. In 2023, about 58,000 people lived there. By 2025, it will increase to about 59,900. The county has peaceful farms and small towns. Palestine is the largest city. It has a charming old downtown, the Texas State Railroad, and a fun festival called Dogwood Trails each year.

Driving is easy, with U.S. Highways 287, 79, and 84 nearby. This makes it a good spot for buying or renting homes. In Texas, if you buy tax deeds at an auction, you can still make money if the owner gets their property back quickly. If they pay you back in a month after you win a deed, you can still earn 25% profit. Owners can reclaim their property within 180 days in Texas, which is faster than many other places.

Fun facts about Anderson County

The people in Anderson County come from different backgrounds. By 2025, a little more than half will be White, about 19% Hispanic or Latino, and around 18% Black. The local economy was about $2.85 billion in 2023. Jobs are found in transportation, real estate, and manufacturing.

The old courthouse, built in 1914, has a nice staircase and pretty stained glass. Tax deeds are sold at auctions on the first Tuesday of every month there. Popular attractions include the Texas Jail House museum, outdoor art called Art Tracks, and Davey Dogwood Park for fun outside.

Investors like the easy highway access and a small airport in Palestine. The economy is doing well with factories making glass and car parts. There are jobs in oil, timber, and farming as well. The median income is about $57,445, and houses here are cheaper than in big cities.

People enjoy fishing and boating on the Neches River. There are local festivals, music, and theaters for fun. Anderson County has a nice small-town vibe with lots of outdoor activities and history to discover.

Why Anderson County is ideal for tax‑deed investors

Anderson County uses Texas redeemable tax deeds. If someone pays off the taxes on a property, you earn a set amount called a statutory premium. If no one pays the taxes, you own the property. Then, you can sell it, rent it, or keep it for yourself. This mix of extra cash and the chance to make money from the property is why lots of investors look at East Texas counties like Anderson

What returns can you expect?

Texas has set rules for redeeming properties. For non-homestead properties, you can get 25 percent of the purchase price if you redeem within six months. For homestead or agricultural properties, you have two years to redeem. If you do it in the first year, you get 25 percent back. If you wait until the second year, you get 50 percent. Your final amount will still depend on how much you paid for the property and how much research you did

Auction process in Anderson County

• Who can bid: Any adult, including out‑of‑state and foreign investors.
• When and where: First Tuesday of the month at 10:00 a.m. Central Time on the courthouse steps unless a legal holiday shifts the sale.
• How bidding works: Oral bids start at the published minimum that covers taxes, interest, court costs, and fees. Highest bid wins.
• Payment: Cash or cashier’s check due the same day, typically by 1:00 p.m. Failure to pay can trigger penalties.
• Deed and redemption: Sheriff’s Deed is issued without warranty. The redemption clock starts when the deed is recorded.

Maximum upside

Your minimum amount is what you get if the owner pays back. Your maximum is how much you could earn if the owner doesn’t pay back. You can make money by buying the property for less than it’s worth, fixing it up, or changing its use. Before placing a bid, check for any city fees, homeowner association dues, or problems with the property’s condition.

Open to all investors

Texas does not require residency. Many non‑Texas buyers work with local agents or attorneys for previews, bidding, recording, and post‑sale tasks. Foreign buyers should obtain a U.S. Taxpayer Identification Number and get tax advice on withholding and reporting.

Understanding the post‑sale period

After you record the deed, ensure you pay the property taxes. Do not make major improvements during the redemption window. If redemption happens, you are paid the premium and allowed costs. If redemption does not happen, proceed with title work and exit plans.

Importance of due diligence in Anderson County tax‑deed investing

What due diligence entails

Due diligence involves researching each property before bidding. Key steps include:

• Property inspection: Visit the property to assess the condition and neighborhood. Some parcels may be landlocked, derelict or occupied.
  
• Title search: Check for mortgages, liens, IRS tax liens or code enforcement fines. While the tax deed wipes out some liens, others (like municipal utility liens) may survive.
  
• Market analysis: Compare similar properties’ sale prices and rents. Determine if the purchase price plus any renovation costs will yield a profitable exit.
  
• Research zoning and restrictions: Verify land use restrictions, flood zones and whether the property is within city limits.
  
• Budget for taxes and insurance: Be prepared to pay property taxes during the redemption period and secure insurance to protect against damage or liability.
  

Risks of skipping due diligence

Bidding without research can have bad surprises. Properties could be unsafe or have serious issues. If you don’t pay for things like yard work, more problems can come up. You might find extra costs that cost you more money later. This can turn a good deal into a money loss. Always take time to check things out. It’s smart to get help from experts to guide you.

Buying over‑the‑counter (OTC) deeds in Anderson County

When properties fail to sell at auction, they may become available over the counter (OTC). As of this writing, Anderson County occasionally offers OTC deeds through its collections office. Investors can purchase these deeds without bidding, often for the minimum judgment amount. Benefits of OTC purchases include:

• No bidding competition: You pay the minimum price, though redemption periods and penalties still apply.
  
• Fixed penalty: The same 25 % or 50 % redemption premium applies, providing predictable returns.
  
• Selection time: Investors can review available properties at their leisure and choose those that fit their criteria.
  

For OTC opportunities, contact the Anderson County tax office directly.

Why Anderson County is a top choice for tax‑deed investors

Economic and tax advantages

Anderson County has a strong economy and low taxes. It’s cheaper to live here than in big Texas cities. This makes homes a good buy for people wanting to invest. The county is in a great spot between Houston and Dallas. This means more people need places to live and work. Texas limits how much property taxes can be. Plus, there is no state income tax, which helps investors keep more money

Real estate market overview

The median home value is about $154,600. Prices are lower than in cities. More people are moving here. Jobs in transport and warehousing are growing. Investors should check rental markets near job places like the Texas Department of Criminal Justice and healthcare in Palestine

Conclusion

Anderson County has tax deeds that can help investors make money. You can earn between 25% and 50%. Auctions happen on the first Tuesday of every month at 10:00 a.m. on the courthouse steps. If you win, you need to register, show your ID, and pay by 1:00 p.m. that day. You have 180 days to redeem non-homestead properties and 2 years for homesteads. If someone pays late, the buyer gets penalties. Anderson County offers affordable properties and nice places to visit, making it a good spot for investors. To succeed, do your homework. Check the property’s condition, its title, the neighborhood, and how much it’s worth. If you need help, ask a professional. With the right prep, buying these deeds can lead to good returns and chances to own property

Pro tips

• Register early: Contact the Anderson County tax office at 703 N. Mallard Street, Suite 104, Palestine, TX; phone (903) 723‑7423 or email [email protected]. Ask about registration deadlines and OTC opportunities.
  
• Bring certified funds: Acceptable forms include cash, cashier’s check or money order. Some counties require separate checks for each property.
  
• Check redemption calculations: The redemption penalty is based on the purchase price and may not include legal fees or subsequent taxes. Budget accordingly.
  
• Track future sales: Monitor local legal notices, the Anderson County website and websites such as Tax Sale Resources for upcoming sale lists.
  
• Stay ethical: Do not bid on property where you or your agents owe delinquent taxes—Texas law prohibits it.
  

FAQs about Anderson County tax deeds

Useful links

• Auction Calendar
• How to Profit from Texas’s Redeemable Deeds
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 
• Learn How to maximize profits at the Texas Tax Sales

Need a hand?

Navigating tax deed sales can be daunting, but you don’t have to do it alone. Our team has successfully invested in Texas tax deeds for over a decade. We offer free resources, due diligence checklists and one‑on‑one coaching. Book a call today to get started, or sign up for our newsletter to receive updates on upcoming auctions and exclusive deals. Check out our Auction Calendar to find your next property.

Sign up or log in to view the full content.

Free help available

Get a Tax Deed in the next 30 days

Need a hand on your first deal at up to 90% off? Book a free call and we’ll guide you step by step.

Auction
Calendar Book a free
call Free
resources

About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded