Take a look at Castro County, Texas Tax Deed Sales

Castro County sits on the High Plains of west Texas and is best known for its farming, cattle feed yards and small‑town hospitality. The county seat is Dimmitt, a Panhandle town where folks still greet each other by name at the courthouse and where property tax sales happen on the courthouse steps. If you are interested in bidding on tax‑foreclosed property in Castro County, understanding the law and local procedures will help you make sound decisions. This guide explains when and where sales occur, registration requirements, redemption rules and why this rural county appeals to tax deed investors.

Overview of Tax Deed Investing in Castro County

Texas has a tax deed system. If property taxes aren’t paid, the county can auction the property. The buyer gets a deed, but the owner can reclaim it for a time. In Castro County, auctions occur on the first Tuesday of each month from 10 a.m. to 4 p.m. Notices are posted at the courthouse and online. Connie Gilbreath runs tax collections and bidder registration at 100 East Bedford Street, Room 100, Dimmitt, TX 79027. Call 806-647-5336 or email [email protected]. To bid, you must not owe back taxes and need to register first.

Important Tax Sale Details

Unique Features and Potential Returns

Castro County, home to approximately 7,100 residents, is known for its tranquil rural atmosphere and strong agricultural focus. Despite a decline in population since 2010, the county offers abundant open land for tax-deed properties, attracting investors with the potential for high returns.

Agriculture is vital to the local economy, with over 70 percent of land used for farming. Key crops include corn and cotton, while the dairy industry significantly contributes to Texas’s economy. The average household income is about $63,000, with 14 percent of residents living in poverty.

Local history includes a memorable 1891 showdown for the county seat and a humorous rabbit escapade. In April 2023, an explosion at a dairy farm drew media attention.

Attractions include the historic Castro County Courthouse and nearby Palo Duro Canyon for outdoor enthusiasts. Improved roadways enhance connectivity, and agriculture remains the county’s economic backbone, with farmers generating substantial revenue.

Why Castro County Appeals to Tax Deed Investors

Economic and Real Estate Factors

Castro County’s economy is based on commodities that remain essential—food crops, cotton and beef—so land retains long‑term value. Irrigation from the Ogallala Aquifer allows high yields even during droughts. As population growth stagnates (the county’s population declined from 8,125 in 2010 to 7,107 in 2025), property prices remain relatively low compared with urban Texas markets. Investors can acquire farmland, rental homes or undeveloped tracts at tax sales with the opportunity to lease them for farming or ranching. The presence of major highways ensures access to markets and transportation for agricultural products.

High Returns with Manageable Risk

Texas’s redemption penalties—25 % for most properties and up to 50 % for homesteads—translate to potential annualized returns far above bank CDs or bonds. Because the penalty is a flat percentage rather than an interest rate, the return is known in advance. If the owner redeems within 180 days, a $20,000 purchase yields a $5,000 return. If the property is not redeemed, the investor gains ownership and can sell or lease it. Buyers assume risk because the deed carries no warranties and unknown liens may exist, but careful due diligence can minimize those risks.

Open to All Investors

Texas law does not restrict foreign or out‑of‑state participation. Anyone who is at least 18 years old and not delinquent on Texas taxes may bid. This openness attracts investors from across the United States and abroad seeking geographic diversification.

Understanding the Tax Sale Process

How the Auction Works

1. Notice and research. Properties scheduled for sale are listed in the Castro County News, posted at the courthouse and online. Each listing includes a legal description, the assessed value, and the amount of taxes owed.
   
2. Register to bid. Prospective buyers must register with the tax assessor‑collector, show identification and certify that they owe no delinquent Texas taxes. Registration usually opens weeks before the sale and closes when the auction begins.
   
3. Attend the sale. On the first Tuesday at 10 a.m., the sheriff or constable reads each property’s description and announces the minimum bid. Bidders call out offers; the property goes to the highest bidder. Payment (cash, cashier’s check or money order) is due immediately.
   
4. After the sale. The buyer receives a constable’s deed. Homestead, agricultural and mineral properties may be redeemed within two years; other properties have a 180‑day redemption period. During redemption, the buyer cannot take possession, but after the period expires, the buyer may evict occupants and assume ownership.
   

Expected Returns on Castro County Tax Deeds

Returns depend on whether the property is redeemed. If it is, investors receive the statutory penalty of 25 % to 50 %. If not, they gain ownership and can sell or rent the property. Because farmland and ranch land in Castro County often generates income, many investors hold properties for lease rather than hoping for redemption.

Importance of Due Diligence

Do your homework. Research the property’s location, zoning, water rights and access roads. Visit the property if possible or view satellite imagery. Perform a title search to identify existing liens—tax deeds in Texas are sold subject to recorded restrictions, IRS liens and HOA dues. Failing to conduct due diligence can lead to costly surprises, such as easements that limit farm use or environmental issues. Hiring a local attorney or title company can help you evaluate risk.

Conclusions

Castro County is a small area with good chances for investing in farmland. They hold tax deed auctions on the first Tuesday of each month at the courthouse. You need to sign up ahead of time and pay right away if you win.

Successful bidders can earn a 25% to 50% penalty if the previous owner redeems their property, or they can own farmland, ranches, or country homes. The local farming economy helps keep land values steady. 

Always do your research and have a plan before bidding. For info on sales, contact Tax Assessor-Collector Connie Gilbreath or check the county’s announcements.

Pro Tips for Castro County Tax Deed Auctions

• Arrive early. Registration lines can be long. Arriving an hour before the sale ensures you complete paperwork and can ask questions.
  
• Bring certified funds. Bidders must pay immediately; personal checks are not accepted.
  
• Set a limit. Don’t get caught up in bidding wars. Calculate your maximum bid based on the property’s value, potential rent and redemption penalty.
  
• Factor in redemption. If you want the property, consider the likelihood that the owner will redeem. Properties with homestead exemptions have a two‑year redemption period and higher chance of redemption.
  
• Watch for resales. Sellers may offer unsold properties later as “resales” at lower minimum bids.. Check the county’s resale notices for bargains.
  

Frequently Asked Questions (FAQs)

When are Castro County tax sales held?
Sales occur on the first Tuesday of the month between 10 a.m. and 4 p.m. when there are tax foreclosures.

Do I need to register?
Yes. You must register with the tax assessor‑collector and sign a statement confirming you owe no delinquent taxes.

How long is the redemption period?
You can redeem homestead, agricultural, and mineral properties within two years, while you can redeem other properties within 180 days

Where can I find upcoming sale lists?
Castro County posts foreclosure notices on its webpage, on the courthouse bulletin board, and in the local newspaper

Can foreign investors participate?
Yes. Texas tax deed sales are open to anyone 18 or older who is not delinquent on Texas taxes.

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?

Looking at Castro County for your next investment? Our Auction Calendar has what you need. Browse tax-sale listings, read through our free resources to gain clarity, and Book a call with our expert team when you’re ready to talk strategy or get personalized help.

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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