Behind on Property Taxes in North Carolina?

Back Taxes in North Carolina: Your Options

This page explains what happens in North Carolina when property taxes on land go unpaid. It covers the September 1 due date, the January 6 deadline, interest, and the two ways a county can foreclose its tax lien: a mortgage-style court action or the in rem method.

In North Carolina the county or city enforces its own tax lien, usually by foreclosure. You can pay or sell until the foreclosure sale is final. This page is general information, not legal or tax advice. For your own parcel, ask your county tax collector.

When North Carolina property taxes are due and go delinquent

Property taxes are due September 1. You can pay without interest through January 5. Starting January 6, interest is added (G.S. 105-360).

Interest

On January 6, interest of 2 percent is added. From February 1 on, interest adds 3/4 of 1 percent for each month or part of a month until paid (G.S. 105-360).

What the county does next: tax lien foreclosure

Unpaid taxes are a lien on the land. The county or city can foreclose it in one of two ways. The first is a court action like a mortgage foreclosure, ending in a public sale at the courthouse. The land is sold free of other liens, with limited exceptions (G.S. 105-374).

The second is the in rem method. No earlier than 30 days after the tax liens were advertised, the tax collector files a certificate of taxes owed with the clerk of superior court, which is docketed as a judgment. After notice, the land can be sold under an execution (G.S. 105-375).

Paying before the sale is final

In a mortgage-style foreclosure, you can stop the case before the sale is confirmed by paying all taxes then due, plus interest, penalties and costs (G.S. 105-374). Legal costs grow as the case moves forward, so pay early if you can. Ask the tax collector for a payoff that includes costs.

Surplus after a foreclosure sale

After a sale, costs and taxes are paid first. Any balance is paid as the court directs or held for the people entitled to it (G.S. 105-374). If your land was sold, ask the clerk of superior court about the surplus.

Your options if you are behind

Your best choice depends on the land, the amount owed and whether a foreclosure has started.

• Pay the full amount owed, with penalties, interest and costs, before the next step in the process.
• Ask the tax office whether it offers a payment plan, and get the terms in writing.
• Sell the land before the deadline. The back taxes are paid from the sale at closing.
• If the land was inherited, gather the death certificate and any will or probate papers early, because a sale needs someone with authority to sign.
• If the numbers are large or a deadline is close, talk to a real estate attorney.

Selling land with back taxes in North Carolina

You can sell land with delinquent taxes before a foreclosure sale is final. At closing, the closing attorney gets a payoff from the tax collector and pays it from the sale price. That clears the tax lien and the buyer gets clear title.

EasyLotBuyer buys vacant land in North Carolina for cash, including lots 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.

County guides: Brunswick and Moore

We have county pages with local due dates, payoff contacts and how each county handles foreclosure:

• Back taxes in Brunswick County, NC
• Back taxes in Moore County, NC

Where to check your tax status

Your county tax collector (or tax office) has the bills, the advertised lien list and payoffs. Most counties have an online tax bill search. The NC Department of Revenue has a property tax page with general information and local contacts.