Mills County, Texas Redeemable Tax Deed — The Essential Guide to Tax Sales

Introduction

Mills County is a small rural county in central Texas. The county seat is Goldthwaite, a town at the junction of U.S. Highways 84 and 183 and State Highway 16. The area is famous for its agricultural heritage and proudly calls itself the “Meat Goat Capital of America”. With just over 4,560 residents in 2024, Mills County combines a tight‑knit community with surprisingly active tax sale opportunities. This article explains how tax sales in Mills County work, why they offer attractive returns and what investors should know before bidding.

What Is a Redeemable Tax Deed Sale?

Texas does not sell tax lien certificates. Instead, counties auction redeemable tax deeds, a hybrid between a tax lien and a tax deed. When an owner fails to pay property taxes, the county forecloses on the property and sells it at public auction. The winning bidder receives a sheriff’s deed (a tax deed) and the right to take possession, but the prior owner retains a statutory right of redemption. Homestead and agricultural properties can be redeemed within two years. Other properties (vacant land, commercial lots, rental houses) have a six‑month redemption period. During the redemption period the investor earns a 25 % penalty on the amount paid if the owner redeems in the first year and 50 % if redeemed in the second year. If no redemption occurs, the investor’s tax deed becomes absolute, providing clear title after a quiet‑title suit.

Important Details

Detail	Information
Tax Sale Type	Redeemable tax deeds; no tax lien certificates.
Typical Sale Date	First Tuesday monthly at the courthouse; notices posted about three weeks before.
Time & Time Zone	Between 10 a.m. and 4 p.m. Central Time; starts at 10 a.m.
Registration	Register on-site on auction day; bring ID, funds, and proof you owe no back taxes.
Deposit	No deposit; pay in full by 5 p.m. at the appraisal office.
Redemption Period	Two years for homestead/agricultural; 180 days for other properties.
Interest/Return	25 % premium if redeemed within a year; 50 % in the second year; capped at 25 % on 180‑day redemptions.
Bidding Procedure	Sold to highest cash bidder; opening bid equals taxes, penalties, and costs.
Where to Find Notices	Posted on the Mills CAD website, in local newspapers, and at the courthouse.
Contact for Information	Mills Central Appraisal District, 901 Sixth St., Goldthwaite, TX 76844; phone 325‑648‑2253; email [email protected]

Fun Facts About Mills County

• Population and size: The county has about 4,456 residents and a population density of 6 people per square mile, making it one of Texas’ least‑crowded counties.
  
• County seat: Goldthwaite is the only incorporated town and houses the courthouse and county jail. The current courthouse (1913) replaced a wooden structure that burned in 1912.
  
• “Meat Goat Capital of America”: Mills County’s motto reflects its dominance in meat‑goat production. Historic records show the county once ranked among the top Texas counties for mohair and wool.
  
• Agricultural strength: According to Texas A&M AgriLife Extension, the county’s annual agricultural receipts total $27 – 29 million, with beef cattle accounting for 39 % of receipts, forage crops 19 %, sheep and goats 14 %, pecans 7 % and small grains 5 %.
  
• Historic transportation: Goldthwaite grew around the Gulf, Colorado and Santa Fe Railway; the town was named for railroad official Joe G. Goldthwaite who auctioned off the original town lots.
  

Attractions & Economic Highlights

• Regency Suspension Bridge: Located about 18 miles west of Goldthwaite, this 1939 suspension bridge spans the Colorado River between Mills and San Saba counties. It is one of only eight suspension bridges left in Texas and was built mostly by local hand labor. During World War II it served as a community gathering place and still draws visitors today.
  
• Legacy Plaza and the J. Waddy Bullion Gardens: In downtown Goldthwaite, Legacy Plaza includes the Texas Botanical Gardens and the county’s welcome center. The gardens, dedicated to J. Waddy Bullion, are open daily and offer educational programs for children and adults. The mission of Legacy Plaza is to provide an interactive learning experience that highlights the natural and cultural history of Central Texas.
  
• Mills County Historical Museum: The museum houses artifacts telling the story of Mills County, from early settlers to the era of wool and mohair. Visitors can see the original county jail (built 1888) and exhibits on ranching and rural life.
  
• Transportation: The county is served by U.S. Highways 84 and 183 and State Highway 16. The location offers easy access from Dallas–Fort Worth and Austin, yet remains firmly rural.
  
• Economy: Mills County’s economy remains anchored in beef cattle, sheep, goats and pecans. Small‑scale manufacturing and outdoor recreation (hunting and fishing) complement agriculture. The county’s low cost of living and steady agricultural base create opportunities for investors seeking property at affordable prices.
  
• Community: Events such as the Goldthwaite Market Day, seasonal festivals and 4‑H youth programs reinforce community ties. The quiet rural lifestyle, low traffic and friendly neighbors appeal to those seeking a slower pace.
  

Why Mills County Is Ideal for Tax Deed Investors

Mills County’s tax deeds offer high returns with relatively low risk. Because Texas law requires a 25 % minimum redemption premium, investors may earn more in six months than many investments yield in a year. The two‑year redemption period on homesteads provides steady passive income. Land values remain modest thanks to the county’s small population and agricultural focus, so initial bids are often affordable. The location along major highways ensures demand from retirees and weekend ranchers. Investors willing to perform due diligence can secure properties with strong upside potential.

Auction Process for Tax Deed Sales

Mills County tax sales are conducted in‑person at the north door of the county courthouse. Auctions occur on the first Tuesday of each month between 10 a.m. and 4 p.m. Central Time. A county representative reads each property description and announces the minimum bid, which equals the judgment amount for delinquent taxes, penalties, interest and court costs. Bidders raise bids until the highest offer is accepted. The winning bidder must pay the full amount in cash or certified funds by 5 p.m. the same day at the Mills Central Appraisal District. If the bidder fails to pay, the property may be reoffered to the next highest bidder.

How the Auction Works

1. Arrive early and register on‑site. Bring government‑issued ID and be prepared to sign an affidavit affirming you owe no delinquent taxes. Some investors also bring a letter from the tax assessor‑collector showing they are current on taxes.
   
2. Review the bid sheet. The appraisal district posts a list of properties and minimum bids three weeks before the sale. Study the list, drive by properties and confirm their condition before bidding.
   
3. Bid competitively. The auctioneer announces each property. Bidding usually starts at the minimum and proceeds in increments set by the auctioneer. If you win, your bid becomes the purchase price.
   
4. Pay immediately. Winning bidders must pay by 5 p.m. the day of the sale at the appraisal district office. Acceptable forms include cash, cashier’s check or money order. Personal checks and financing are generally not accepted.
   

Receive your deed. After payment, the constable or sheriff issues a tax deed. The deed conveys all title and interest of the previous owner subject to the statutory redemption period. Record the deed promptly to start the redemption clock.

Maximum Potential Returns and Expected Returns

Texas tax deeds provide some of the highest statutory returns in the country. Under the Right of Redemption statute, owners redeeming homestead or agricultural property within the first year must pay the investor 25 % of the amount bid plus reimbursement for taxes and costs. If redemption occurs in the second year, the premium increases to 50 %. Non‑homestead property can be redeemed within 180 days with a 25 % premium. Because the premium is calculated on the full bid amount, investors can achieve annualized yields of 25 % to over 50 % depending on the timing of redemption. If no redemption occurs, investors obtain fee simple title and can sell or rent the property. Actual returns depend on bid price, property value and whether the owner redeems; conservative investors bid only on properties worth well above the judgment amount to ensure equity.

Open to All Investors / Foreign Investor Participation

Texas law does not restrict bidders to residents or U.S. citizens. Any adult with the funds to pay may bid at Mills County tax sales. International investors must provide proper identification and, in some cases, may need a U.S. tax identification number to complete closing. Because there is no pre‑registration in Mills County, foreign buyers may participate by simply appearing at the sale. Online auctions—rare in this county—require registration on the auction platform with verification of identity. International investors should consult tax advisors about U.S. tax obligations and ensure they can wire funds promptly. The openness of Texas tax sales creates opportunities for global investors seeking stable returns.

What Due Diligence Entails

Due diligence is critical for successful tax deed investing. Property inspection should be the first step: drive by each property to verify its existence, access and condition. Check whether structures are occupied and if there are visible hazards. Next, perform a title search to identify liens that might survive the tax sale. Some liens—such as municipal utility liens or IRS liens—may remain attached to the property after the sale. Review local land‑use rules and restrictions and check for environmental issues. Confirm whether the property is subject to a homeowners’ association with covenants, conditions and restrictions. Finally, budget for closing costs, recording fees and potential legal expenses for a quiet title action.

Risks of Skipping Due Diligence

Skipping due diligence can lead to costly surprises. Investors may win a parcel that is landlocked, contains an unsafe structure or is encumbered by liens that were not extinguished by the tax sale. You might discover that the property sits in a floodplain or lacks utilities. Occupied properties require eviction proceedings, which add time and cost. In Texas, quiet title lawsuits are often needed to insure or sell a tax‑deed property; failing to budget for legal work can erode returns. Knowledgeable investors reduce these risks by thoroughly researching each parcel and consulting local professionals.

Buying Over‑the‑Counter (OTC) Deeds in Mills County

Unsold tax deeds (called “struck‑off” or “trust property”) may be purchased directly from the county or its law firm after the auction. To buy over the counter, obtain the list of struck‑off properties from the appraisal district or from the county’s tax attorney. Submit a written bid—often equal to or greater than the judgment amount—and wait for approval from the taxing entities. Once approved, pay the purchase price and receive a sheriff’s deed. The same redemption periods and premium rules apply, and buyers still need to record the deed and quiet the title.

Benefits of OTC Purchases

Over‑the‑counter purchases avoid competitive bidding, allowing investors to buy at the judgment amount. The redemption premium (25 % – 50 %) remains the same, so returns are predictable. Investors also have more time to research properties before making an offer. However, desirable properties rarely remain unsold, so the inventory may consist of less‑marketable lots.

Why Mills County Is a Top Choice for Tax Investors

Economic and Tax Advantages

Mills County’s economy relies on multiple forms of agriculture, with beef cattle, forage crops, sheep, goats and pecans generating most of its $27 – 29 million in annual agricultural receipts. Such stability shields the area from cycles of rapid growth and decline. Property values are modest, and Texas has no state income tax, making real estate ownership attractive. Investors benefit from a 25 %–50 % statutory return on redeemed deeds and the ability to acquire acreage at low prices.

Real Estate Market Overview

Housing in Mills County is affordable compared with Texas metropolitan areas. With a population under 5,000 and many large ranches, there is plentiful land and little development pressure. Low population density (6 people per square mile) means there are often unoccupied parcels at tax sales. Investors interested in recreational property, hunting tracts or retirement homes can find bargains. Because the county seat lies at the junction of several highways, access to Dallas–Fort Worth or Austin is convenient, encouraging demand for weekend ranches.

Conclusion

Mills County, Texas offers investors a unique opportunity to purchase redeemable tax deeds that combine the security of a deed with the high returns of a tax lien. Auctions occur on the first Tuesday of each month at the county courthouse. Bidders should arrive early, register on‑site and bring cash or certified funds. The redemption period—six months for most properties and two years for homesteads—provides a strong statutory return of 25 % to 50 %. Success requires thorough due diligence: inspect properties, search titles and budget for quiet title actions. With careful preparation, Mills County tax sales can deliver above‑average yields and the satisfaction of owning a piece of rural Texas. For current sale dates and bid lists, monitor the Mills Central Appraisal District website and sign up for its notices. Remember to consult professional advisors and to respect all laws and regulations when investing.

Pro Tips

• Preview properties early. Drive by each parcel on the sale list and take photos. Note access, terrain and visible structures. A quick visit can prevent costly mistakes.
  
• Bring exact payment. Have your funds ready as cash, money order or cashier’s check; you must pay by 5 p.m. on auction day.
  
• Check for unrecorded liens. Some liens survive tax sales. Search the county clerk’s records and utility accounts for outstanding balances.
  
• Understand redemption rights. Expect that owners may redeem. Budget accordingly and keep your capital tied up until the redemption period ends.
  
• Plan for quiet title. Hire an attorney to file a quiet‑title action once the redemption period expires. This step is essential for obtaining title insurance and reselling the property.
  

Frequently Asked Questions

What happens if someone is living on the property I purchase? Tax deeds convey legal title but not immediate possession. If the property is occupied, you must follow Texas eviction laws, which may involve serving notice and filing for forcible detainer. Some investors offer cash for keys to encourage occupants to leave amicably.

Do I need to pay for renovations during the redemption period? Any improvements you make before the redemption period expires may not be reimbursed if the owner redeems. Texas law allows reimbursement of “costs” spent for preserving or safeguarding the property but does not guarantee recovery of renovation expenses. Most investors wait until the redemption period ends before making major repairs.

Can I get financing for a tax‑deed purchase? Traditional lenders rarely finance tax‑deed purchases because sale terms require immediate payment. Investors usually use cash, lines of credit or private funding. After the redemption period and quiet title, you may refinance the property with conventional financing.

How do I clear the title after the redemption period? A tax deed does not automatically guarantee marketable title. You typically need to file a quiet‑title action in district court. An attorney will serve notices to former owners and lien holders and obtain a judgment confirming your ownership. Once the court enters judgment, title insurers will usually insure the property.What if I want to sell during the redemption period? You can sell your interest at any time, but buyers must accept the property subject to the remaining redemption rights. Some investors sell tax‑deed interests at a discount, while others wait until the redemption period expires to fetch a higher price.

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

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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