Behind on Property Taxes in California?

Back Taxes in California: Your Options

This page explains what happens in California when property taxes on land go unpaid. It covers the due dates, the penalties, tax default, the five-year payment plan, the county tax sale, redemption and the money left over after a sale. It is written for owners of vacant land, including people who inherited a lot and found out the taxes were not paid.

California does not sell tax liens. Unpaid taxes stay with the land and grow with penalties. After five years in default, the county tax collector can sell the land at a public auction. Until the day before that sale, you can still pay off the taxes or sell the land yourself. This page is general information, not legal or tax advice. For your own parcel, ask your county tax collector.

When California property taxes are due and when they go delinquent

Each county tax collector bills the secured roll once a year. You can pay in two installments. The first installment is due November 1 and becomes delinquent after 5 p.m. on December 10 (R&TC 2617). The second installment is due February 1 and becomes delinquent after 5 p.m. on April 10 (R&TC 2618). If a date falls on a weekend or holiday, it moves to the next business day.

Not getting a bill does not stop the penalties. If you own land in another county or another state, check that the tax collector has your current mailing address.

Penalties and interest

A late installment gets a 10 percent penalty. A late second installment also gets a $10 cost. If any part of the year's taxes is still unpaid at the end of June 30, the taxes are declared in default at 12:01 a.m. on July 1 (R&TC 3436).

From July 1, defaulted taxes add a redemption penalty of 1.5 percent a month, which is 18 percent a year (R&TC 4103). A $15 redemption fee is added for each parcel (R&TC 4102). Each later year that goes unpaid is added to the total and gets the same monthly penalty.

What the county does next: power to sell and the tax sale

Five years after the land goes into tax default, the tax collector gets the power to sell it. For nonresidential commercial property, the wait is three years (R&TC 3691). Most vacant land is on the five-year track, but ask your tax collector how your parcel is classed.

Before the sale, the tax collector must send notice by certified mail to the owner and others with an interest in the land. The notice goes out not less than 45 days and not more than 120 days before the sale. It gives the date, the amount needed to redeem and your right to claim excess proceeds (R&TC 3701). Many counties hold these sales online. The buyer at the sale gets a tax deed and you lose the land.

Redemption: paying off defaulted taxes

To redeem, you pay all the defaulted taxes, the delinquent penalties and costs, the redemption penalties and the redemption fee (R&TC 4102). You pay the county tax collector. There is no private lien holder to pay.

Your right to redeem ends at the close of business on the last business day before the sale starts. A mailed payment must arrive before that deadline; a postmark is not enough (R&TC 3707). If the land does not sell, the right to redeem comes back.

Your options if you are behind

The right choice depends on what you owe, what the land is worth and whether you want to keep it.

• Pay in full. Ask the tax collector for a redemption amount good through the day you plan to pay.
• Use the five-year installment plan. You can start a plan any time before 5 p.m. on the last business day before the county gets the power to sell (R&TC 4217). Counties describe the plan as about 20 percent down, then at least 20 percent each year, while you also pay current taxes on time. A county may charge a setup fee. If you miss a plan payment, you may not be able to start a new plan.
• Sell the land. The defaulted taxes are paid from the sale price at closing.
• Do nothing. After the sale, you can still file a claim for excess proceeds within one year after the tax deed is recorded (R&TC 4675). You lose the land either way.

Selling land with back taxes in California

You can sell land with defaulted taxes until the right of redemption ends. At closing, the title or escrow company asks the tax collector for a payoff and pays it from the sale price. That redeems the parcel, and the buyer gets it free of the tax debt. You get the rest of the price.

If a sale date is already set, tell your buyer and the escrow officer at once. The payoff must reach the tax collector before the close of business on the last business day before the sale.

EasyLotBuyer buys vacant land in California for cash, including land with back taxes, liens, title issues or no road access, and land from heirs and estates. We make a cash offer within 24 hours, charge no fees or commissions, and pay the closing costs. We can close in as few as 7 days. Back taxes are paid at closing from the sale, so you do not need to pay them first.

Where to check your tax status

Your county tax collector holds your tax records. Most offer an online search by parcel number (APN) that shows each installment and whether the parcel is in default. The State Board of Equalization keeps a list of every county tax collector with contact details. Ask for the redemption amount, the year the parcel went into default and whether the county has the power to sell.