How to Sell Land When You're Behind on Property Taxes

Falling behind on property taxes is more common than you might think, especially for vacant land owners who aren't generating income from their property. If you're facing tax delinquency on land you own, you have options, but time is critical.

How Property Tax Delinquency Works

When you fail to pay property taxes, the county places a tax lien on your property. The timeline and consequences vary by state:

Tax lien placed: Usually after 1-2 years of non-payment
Interest and penalties accrue: Often 12-18% annually
Tax lien sale or tax deed sale: The county sells the lien or the property itself
Redemption period: Some states allow you to reclaim the property by paying back taxes plus penalties
Foreclosure: If not redeemed, the lien holder or county takes ownership

For vacant land owners who've forgotten about a distant parcel, this process can happen without you realizing it until it's too late.

Can You Sell Land With Back Taxes?

Yes, and in many cases, selling is the smartest move. When you sell to a cash land buyer:

The buyer typically pays off back taxes as part of the purchase
Back taxes are deducted from the sale proceeds (not added on top)
You avoid the escalating penalties and interest
You prevent eventual foreclosure and loss of the entire property

Steps to Take Right Now

1. Find Out Exactly What You Owe

Contact the county tax assessor's office where the property is located. Request:

Total amount owed including penalties and interest
Years of delinquency
Whether a tax lien has been sold
Any upcoming tax deed sale dates

2. Understand Your Timeline

If a tax deed sale is scheduled, you may have limited time. Some counties hold annual tax sales where delinquent properties are auctioned. Missing this deadline means losing your property entirely.

3. Evaluate Your Options

Pay the back taxes yourself: Only makes sense if you want to keep the land and can afford the total amount plus future taxes.

Set up a payment plan: Some counties offer installment plans for delinquent taxes. This buys time but doesn't solve the underlying problem if you don't want the land.

Sell the land: Convert a liability into cash. Even with back taxes deducted, you may walk away with money instead of losing the property to foreclosure.

4. Act Before the Tax Sale

Properties sold at tax deed auctions typically go for a fraction of their value. The county only needs to recover the tax debt, not the full market value. Selling before the auction almost always nets you more money.

What Cash Buyers Look For With Tax-Delinquent Land

Professional land buyers regularly purchase tax-delinquent properties. They factor in:

Total back taxes owed
Market value of the land
Title issues from the tax lien
Time and cost to clear the title

A reputable buyer will be transparent about how back taxes affect your offer. The offer you receive should account for taxes being paid. You shouldn't be surprised by deductions at closing.

Red Flags to Avoid

Be cautious of:

Buyers who pressure you to sign before you understand the tax situation
Offers that seem too low without explanation of tax deductions
Anyone who asks you to pay back taxes before they'll buy
Companies that don't explain how the tax lien affects the transaction

Preventing Future Tax Problems

If you own land you don't plan to use:

Set up automatic tax payments if possible
Sell before taxes become a problem
Consider the annual cost when deciding whether to keep inherited land
Keep your mailing address updated with the county

Don't Wait Until It's Too Late

Every month you delay, penalties and interest grow. If a tax deed sale is approaching, the clock is ticking. PrimeAcre Land Group has helped many land owners sell properties with back taxes. We handle the lien payoff as part of the transaction.

Get your free cash offer today and stop the tax clock from running.