Delinquent property taxes in California can feel like a slow-moving problem until suddenly they aren’t. Penalties and interest add up, and if taxes stay unpaid long enough, the county can eventually sell the property at a tax auction. The good news is that there’s usually time to act, and there are real options, from payment plans to selling the house on your own terms.

We’ve been buying houses in California since 2003, and back taxes come up often, especially with inherited homes where the bills stopped getting paid after a parent passed. We’re not attorneys or tax advisors, and every county has its own procedures, so contact your county tax collector for exact amounts and deadlines. Here’s a plain-English overview.

When California Property Taxes Become Delinquent

California’s secured property taxes are generally paid in two installments:

• First installment: due November 1 and delinquent if not paid by December 10
• Second installment: due February 1 and delinquent if not paid by April 10

If a deadline falls on a weekend or holiday, the county usually moves it to the next business day. A delinquent installment generally picks up a 10% penalty, and the second installment may have an added cost as well.

What “Tax-Defaulted” Means

If the taxes for the year still aren’t paid by the end of the fiscal year (June 30), the property generally becomes tax-defaulted on July 1. At that point:

• The unpaid taxes, penalties, and costs become the “redemption amount”
• Redemption penalties (generally 1.5% per month) start to accrue
• A redemption fee is added

You still own the house. Tax-defaulted status starts a clock, not an immediate sale.

The Tax Sale Timeline

For most residential property, if the taxes remain in default for five years, the county tax collector generally gains the power to sell the property at a public tax auction. Counties send notices along the way, and owners can usually redeem the property (pay everything owed) up until shortly before the sale.

If the property sells at auction for more than what’s owed, there may be excess proceeds that former owners and lienholders can claim. That process has its own deadlines and paperwork, so it’s far better to deal with the taxes before it gets to that point.

Options If You’re Behind

1. Pay the redemption amount

If you can pay it all, contact the county tax collector for a current payoff amount, since penalties keep adding up monthly.

2. Ask about a five-year payment plan

Many California counties offer an installment plan for tax-defaulted property that lets you pay the redemption amount over up to five years, as long as you also stay current on new taxes. Ask your county tax collector whether you qualify and what’s required.

3. Check whether you qualify for postponement

California has a property tax postponement program through the State Controller’s Office for certain homeowners who are seniors, blind, or have a disability and meet income and equity requirements. It’s worth checking if that describes you or a parent.

4. Talk to your mortgage lender

If you have a mortgage, your lender may pay the delinquent taxes to protect its interest and then add the amount to your loan or require an escrow account. Unpaid taxes can also be a default under many loans, which can lead to bigger problems. If you’re already behind on payments, our guide to selling a house during foreclosure in California may help.

5. Sell the house

If the taxes are part of a bigger financial picture, selling can be the cleanest solution. When a house sells, delinquent property taxes are generally paid off through escrow out of the sale proceeds, along with any mortgage and liens, so you don’t need cash up front to clear them.

Inherited Homes and Back Taxes

Back taxes are common with inherited houses. A parent may have fallen behind, or the bills kept arriving at an empty house after they passed. If you’re an heir, executor, or trustee, contact the tax collector early, find out the redemption amount, and keep paying current installments if the estate can. Our guides on how to sell an inherited house in California and how long probate takes in California cover the bigger steps.

How Selling to Us Works With Back Taxes

We’ve bought houses with unpaid property taxes before. Back taxes, liens, and other debts attached to a house are handled at closing through a licensed title and escrow company. Our offers are based on comparable sales, the work the house needs, and our holding and resale costs, and we’ll explain the numbers if you ask. You don’t pay commissions, and we cover typical closing costs. Timing depends on title and paperwork, but when things are in order, closing can often happen quickly. We’ll be honest with you if another option, like a payment plan, makes more sense.

When Selling Isn’t the Best Option

If you want to keep the house and can manage the payments, a county payment plan or postponement program may be the better choice. And if your home is in good condition and you have time, listing with an agent may bring you more money than a cash sale. Selling to a cash buyer tends to make the most sense when the taxes are one of several pressures, the house needs work, or you’re running out of time.

Frequently Asked Questions

Get an Honest Offer

If you’re behind on property taxes and thinking about selling, or you’ve inherited a house with back taxes, we’re happy to talk it through and give you a no-obligation cash offer. No pressure, and we’ll be straight with you about your options. Call Lawrence at (510) 824-8710 or fill out the form below.