Behind on Property Taxes in Alabama?

Back Taxes in Alabama: Your Options

This page explains what happens in Alabama when property taxes on a lot or acreage go unpaid. It covers when taxes go delinquent, what the county does next, the tax sale and the tax lien auction, how long you have to redeem, and the choices you have. It is written for owners of vacant land, including heirs who found out late that taxes were owed.

Back taxes do not stop you from selling. Until your right to redeem ends, you still have an interest in the land, and the taxes can be paid from the sale price at closing. This page is general information, not legal or tax advice. Rules and dates can differ by county, so confirm your case with your county's revenue commissioner, tax collector or probate judge.

When Alabama property taxes are due and when they go delinquent

Alabama property taxes are due October 1 each year. The Alabama Department of Revenue says they are delinquent after December 31, so a bill not paid by then is late on January 1.

The taxes follow the land, not the person. The Department of Revenue says a new owner must pay delinquent taxes even for years before he or she owned the property. If you inherit or buy land, check for unpaid years before you assume the bill is current.

Interest, fees and costs

Once taxes are delinquent, interest, fees and costs are added. The amounts grow as the county moves the parcel toward a sale, because advertising and sale costs are added too. Ask your county tax official for an exact payoff figure, because the total changes over time.

Paying someone else's taxes does not make that person the owner. The Department of Revenue says state law lets people other than the owner pay the taxes, but paying them does not give a deed.

What the county does next: tax sale or tax lien auction

The Department of Revenue gives this yearly order of events: taxes are due in October, delinquent in January, turned over to probate court in February, the probate court meets in March, the property is advertised in April and the tax sale is held in May. It says the public tax auction is usually held the first Monday in May.

Alabama counties can collect in one of two ways. The county tax official may sell the land itself at a tax sale, or sell a tax lien at a tax lien auction (Code of Alabama Title 40, Chapter 10, Article 7, starting at section 40-10-180). At a tax sale, the buyer gets a certificate of purchase, not the land. At a tax lien auction, the buyer gets a tax lien certificate and the right to collect interest. If nobody bids at a tax sale, the State of Alabama buys the parcel and holds the certificate.

The two paths have different redemption rules, so find out which one your county used for your parcel.

Redemption: getting the land back

After a tax sale, the Department of Revenue says you may redeem within 3 years of the sale by paying all taxes, interest, fees and penalties, with interest at 12 percent a year. Redemption from a tax sale is handled through the county's probate judge and county officials. If the state bought the parcel, the Department of Revenue holds the certificate. When the state has held a certificate for more than 3 years, it can issue a tax deed to a buyer who applies.

For a tax lien auction, the bidding starts at no more than 12 percent interest and goes down. A 2024 law (HB 270) says the lien holder can sue in circuit court to foreclose your right to redeem only after 4 years from the auction, and no later than 10 years. The holder must mail notice at least 30 days, and not more than 180 days, before filing. You can redeem at any time before the court enters final judgment, and anyone entitled to redeem may ask that the property be sold at public auction instead.

If a tax sale brings in more than the amount owed, the extra money is called excess. Under section 40-10-28, the person who redeems can get it back if the claim is made within 3 years of the sale. After 3 years and within 10 years (for sales in 2016 or later), it can be paid to the former owner who redeems by agreement with the buyer, gets a court order of redemption, or signs a recorded release of the right to redeem.

Your options if you owe back taxes on Alabama land

• Pay the delinquent taxes before the parcel is advertised or sold. This is the cheapest option.
• Redeem after a sale by paying the amount due plus interest. Ask the county or the Department of Revenue for a written quote.
• If you received notice of a tax lien foreclosure lawsuit, answer within the time stated, or get advice from an Alabama attorney.
• Sell the land. The back taxes and any redemption amount are paid from the sale price at closing.
• If the parcel already sold for more than the taxes, ask the county about excess funds and the deadline to claim them.

Selling Alabama land with back taxes

You can sell land that has back taxes or that sold at a tax sale and is still redeemable. At closing, the closing agent pays the county or the state from the sale price, which clears the taxes or redeems the certificate. The rest goes to you.

EasyLotBuyer buys land with back taxes, liens and title issues, including land owned by heirs or an estate. We make a cash offer within 24 hours, charge no fees or commissions, pay the closing costs, and can close in as few as 7 days. The back taxes are paid at closing from the sale. Get a cash offer for your land.

Where to check your tax status in Alabama

Property tax is collected by each county's revenue commissioner, tax collector or license commissioner, depending on the county. Start with your county's office, which can tell you which years are unpaid and whether the parcel was sold.

The Alabama Department of Revenue Property Tax Division posts lists by county of tax delinquent parcels held by the state and takes applications for state-held parcels. Its Tax Delinquent Property and Land Sales page explains how state-held certificates work.