Can you sell a house if you're behind on property taxes?
Yes. You can sell a house with back taxes or a tax lien on it. At closing, the title company or closing agent pays the unpaid taxes, interest and fees out of the sale money, pays off any mortgage, and the rest goes to you.
The taxes have to be paid for the buyer to get clean title. The Texas Comptroller notes that a buyer generally can't get clear title until delinquent taxes are paid in full. In Florida, the law makes property taxes a first lien, ahead of other liens on the property (section 197.122).
If you're behind, it pays to act early. Interest and penalties keep adding up, and in all three states we buy in, unpaid taxes can eventually lead to the property being sold.
What happens if Florida property taxes stay unpaid?
Florida follows a set process under Chapter 197 of the Florida Statutes. Here are the main steps.
- Taxes become delinquent. Florida taxes become delinquent on April 1 of the year after they're assessed, or 60 days after the original tax notice was mailed, whichever is later (section 197.333).
- A tax certificate is sold. The county tax collector must advertise and sell tax certificates on delinquent property on or before June 1, or the 60th day after the taxes became delinquent, whichever is later (section 197.402). Bidders compete on the interest rate they will accept, and the lowest rate wins (section 197.432).
- You can still redeem. A tax certificate is a lien. It doesn't transfer the house. Florida law lets any person redeem a certificate at any time after it's issued and before a tax deed is issued, by paying the face amount plus interest, costs and charges (section 197.472). Your county tax collector can tell you the exact amount.
- The certificate holder can apply for a tax deed. Once 2 years have passed since April 1 of the year the certificate was issued, the holder can apply for a tax deed through the tax collector (section 197.502). That application can lead to a tax deed sale, where the property itself is sold.
A few more Florida details:
- For homestead property, the opening bid at a tax deed sale must include an amount equal to one-half of the home's latest assessed value (section 197.502).
- If no one applies for a tax deed, a certificate generally expires 7 years after it was issued (section 197.482).
If you're getting tax certificate or tax deed notices, call your county tax collector and clerk of court, and talk to a local attorney if a tax deed application has been filed. We buy in Tampa Bay, Sarasota, Bradenton, Port Charlotte, Orlando, Lakeland and Jacksonville.
Back property taxes in Texas and Alabama
Texas
- Due dates. The Texas Comptroller says most property taxes must be paid by January 31 and become delinquent on February 1. If the bill was mailed after January 10, the delinquency date moves later.
- Penalties and interest. On February 1, delinquent taxes get a 6% penalty and 1% interest. The penalty goes up 1% a month until it reaches 12% on July 1, and interest keeps adding 1% a month. Attorneys who collect delinquent taxes can add up to 20% more.
- The lien and lawsuits. A tax lien attaches to the property every January 1. As a last resort, the tax office can sue, and a court can order the property sold at auction to pay the taxes.
- Payment plans. Some tax collectors allow delinquent taxes to be paid in installments over as long as 36 months. Signing the agreement counts as admitting you owe the taxes.
- Deferral for some owners. Homeowners who are 65 or older, disabled, or qualified disabled veterans can defer current and delinquent taxes on the home they own and live in, by filing a tax deferral affidavit with the appraisal district. Deferred taxes still build up interest of 5% a year, and they come due when the owner no longer owns and lives in the home.
We buy in Killeen and the rest of Bell County.
Alabama
- Due dates. The Alabama Department of Revenue says property taxes are due October 1 and delinquent after December 31. You owe the taxes whether or not you receive a statement.
- The tax sale. On the department's timetable, delinquent taxes go to the probate court in February, the property is advertised in April, and the tax sale is held in May.
- Redemption. The department says you may redeem your property within 3 years of the sale by paying all taxes, interest, fees and penalties.
Ask your county's tax office for the exact amount you owe. We buy in Birmingham and nearby.
Your options when you're behind on property taxes
| Option | What it takes | Good to know |
|---|---|---|
| Pay the taxes in full | The full amount, plus interest and fees | Stops more interest from adding up |
| Payment plan or deferral | Asking your tax office or appraisal district if you qualify | Depends on your state, county and situation |
| List with an agent | Time to prep, list and close | Taxes are paid at closing, and agent commissions apply |
| Sell to BigBuck Offers | A call or the form, then a closing date you choose | Taxes are paid at closing, with no fees and no agent commissions |
If your house is in good shape and you have time, listing with an agent will usually net you more than a cash sale. That's the honest answer.
A cash sale tends to make more sense when the house needs repairs, a tax deed or tax sale is getting close, or you'd rather skip showings. It's also common to be behind on taxes and something else at the same time, like a mortgage in foreclosure, an inherited house, or fire damage.
How selling to us works
- Tell us about the house. Use the form on this page or call 1-844-348-9268.
- Get a cash offer, usually the same day we have the property details.
- Pick your closing date, as soon as 7 days or on the date that works for you.
We buy as-is, with no repairs, no cleaning, no fees and no agent commissions. You can ask for a cash offer here.
FAQ
Can I sell my house with a tax lien on it?
Yes. The lien is paid off from the sale money at closing, along with interest and fees, so the buyer gets clear title.
What is a tax deed sale in Florida?
It's a sale of the property itself to collect unpaid taxes. It can happen after a tax certificate holder applies for a tax deed, which the law allows once 2 years have passed since April 1 of the year the certificate was issued.
Do I still own my house if a tax certificate was sold in Florida?
Yes. A tax certificate is a lien, not a transfer of the house. Florida law lets you redeem it any time before a tax deed is issued.
Who pays the back taxes when I sell?
They're paid out of the sale money at closing, before you receive your proceeds. The closing statement shows every amount that was paid.
How fast can you buy a house with back taxes?
We can close in as little as 7 days, or on the date you choose. Tell us about any tax sale or tax deed dates up front.
This page is general information, not legal or tax advice.
