Selling inherited house taxes in Texas can feel confusing when you’re already dealing with the emotional side of losing a loved one. For many families, inheriting a home is a mixed blessing — it represents memories, but also responsibilities like upkeep, insurance, and property taxes.
If you’re considering selling an inherited house in Texas, it’s important to understand how taxes work and how you can minimize what you owe when you sell. The good news? Texas is one of the most tax-friendly states for inherited property owners.
1. Do You Pay Taxes When You Inherit a House in Texas?
Here’s the first relief: Texas does not have an inheritance tax or estate tax.
That means inheriting the house itself won’t cost you anything in taxes.
However, if you decide to sell that house later, you might owe capital gains taxes — but only on the profit made from the sale. The key factor that determines how much you’ll owe is something called the step-up in basis, which the IRS allows to make things fair for heirs.
2. Understanding the Step-Up in Basis Rule
The step-up in basis adjusts the property’s value for tax purposes to reflect what it was worth when your loved one passed away — not what they originally paid for it.
For example:
- Suppose your parents bought their Fort Worth home for $120,000.
- At the time of inheritance, it’s valued at $300,000.
- If you sell it for $315,000, your taxable gain is just $15,000, not $195,000.
This rule dramatically reduces your taxable profit and often eliminates capital gains altogether if you sell the home soon after inheriting it.
3. Capital Gains Tax on Selling Inherited Property in Texas
Even though Texas has no state income tax, you may still owe federal capital gains tax if the home appreciates in value before you sell it.
Here’s how it works:
Taxable Gain = Sale Price – Stepped-Up Basis – Selling Expenses
If your gain is small, your tax bill will be minimal. And if you sell quickly — before the home appreciates much more — you might not owe anything at all.
Short-term vs. Long-term:
- Selling within a year: taxed as regular income (short-term).
- Selling after a year: taxed at a lower long-term capital gains rate (0%, 15%, or 20%).
4. What If the House Is Still in Probate?
In Texas, many inherited homes go through probate, which is the legal process of settling a deceased person’s estate. During probate, you can’t sell the home until the court gives approval — but once it does, you can sell it and distribute the proceeds to heirs.
Here’s how taxes typically apply in a probate house sale in Texas:
- The estate might owe federal estate tax only if the total value exceeds $13.61 million (as of 2024).
- Once ownership is transferred, heirs assume the stepped-up basis and can sell the house at fair market value with little or no taxable gain.
- Property taxes and maintenance costs remain the heirs’ responsibility during the probate process.
Probate can take months, which is why many heirs in Texas choose to work with a local cash home buyer who can purchase the property quickly and handle the paperwork.
5. How to Reduce or Avoid Taxes When Selling an Inherited Home
If you’re thinking about selling, here are a few proven strategies to keep your tax burden low:
✅ Sell the home soon after inheriting it.
The smaller the change in value, the less taxable gain you’ll have.
✅ Get an appraisal right away.
This sets a solid baseline for your stepped-up basis and protects you from IRS disputes later.
✅ Deduct selling costs.
Realtor fees, title charges, and closing costs can all reduce your taxable profit.
✅ Consider moving in.
If you live in the inherited home for at least two years before selling, you may qualify for the home sale tax exclusion — up to $250,000 ($500,000 for married couples).
✅ Sell to a direct home buyer.
Companies like TMC Property Solutions buy inherited homes as-is, letting you skip repairs, cleaning, and realtor fees while closing fast — often within two weeks.
6. The Hidden Costs of Holding Onto an Inherited House
While some families want to keep the property for sentimental reasons, holding onto an inherited house can become expensive. You’ll need to cover:
- Annual property taxes
- Ongoing maintenance and utilities
- Insurance and HOA fees (if applicable)
If the home sits vacant, it can also attract vandalism or code violations. That’s why many heirs choose to sell an inherited house fast in Texas — to avoid unnecessary expenses and stress.
7. Should You Keep, Rent, or Sell Your Inherited Property?
Here’s a quick way to decide:
| Option | Pros | Cons |
|---|---|---|
| Keep It | Preserve family legacy | Pay for upkeep and taxes |
| Rent It | Generates income | Requires management and repairs |
| Sell It | Quick cash, stress-free | May owe small capital gains tax |
If you don’t live nearby, can’t afford the maintenance, or are dealing with multiple heirs, selling might be the simplest and most practical option.
8. Selling an Inherited House Fast in Texas
If you’d rather skip the repairs, showings, and long waiting periods, selling directly to a cash home buyer in Texas can make your life much easier.
With TMC Property Solutions, you can:
- Sell your inherited house as-is — no cleaning, no repairs
- Close in as little as 7–14 days
- Pay no realtor commissions or hidden fees
- Avoid ongoing property taxes and holding costs
It’s the fastest and most convenient way to turn your inherited property into cash without dealing with legal or financial headaches.
Final Thoughts: Take Control of Your Inherited Property
Understanding selling inherited house taxes in Texas doesn’t have to be complicated. With the step-up in basis, many heirs pay little to no capital gains tax when they sell. The key is to act quickly, document your home’s fair market value, and explore all your options — including selling directly to a local buyer who knows Texas probate laws.
At TMC Property Solutions, we help Texas homeowners navigate probate and sell their inherited houses fast. Whether your property is in Fort Worth, Weatherford, or anywhere in North Texas, our team can make you a fair cash offer and handle the entire process for you.
👉 Avoid the stress, skip the hassle, and sell your inherited house fast in Texas.
Get your no-obligation cash offer today or call us now at 817-550-5069 OPT# 3 to learn how easy it is to move forward.
We work with families every day who are dealing with inherited homes. Whether you want to sell quickly, avoid costly repairs, or just get clear answers, we’re here to help. Reach out today for a no-obligation consultation.
Skip the hassle of dealing with taxes by selling your inherited house to a direct buyer like TMC Property Solutions.
TMC Property Solutions is a direct buyer./local house buyer specializing in distressed properties in Weatherford, Texas. We offer cash offers and can close quickly, so you can get back on your feet as soon as possible. Moreover, we are committed to helping homeowners in need and will work with you to make the selling process as easy as possible. There’s no need for repairs. We buy houses in any condition, and we offer a fair price, close in days, we buy in as-is condition, and we pay all your closing costs.
Contact TMC Property Solutions today. We would be happy to answer any questions you have and provide you with a free, no-obligation offer.
Need to sell your house? TMC Property Solutions can assist you with whatever reason you desire to sell. Call or text us today at (817) 550-5069 Opt#3. Contact us immediately if you need to get rid of a problem property. We are willing to buy houses in any condition.
If we can’t help you, we probably know someone who can, so call us today.