Behind on Property Taxes in Rhode Island?

Back Taxes in Rhode Island: Your Options

Rhode Island has no county tax offices. Each city or town assesses and collects its own property tax, and each one runs its own tax sale. This page explains what happens when taxes on a lot go unpaid: the interest, the collector's sale, how you redeem, and when a buyer can ask a court to end your right to redeem.

Back taxes do not stop you from selling. Until a court ends your right of redemption, you still have a way to clear the debt, and you can sell the land and have the back taxes paid at closing from the sale. This page is general information, not legal or tax advice. For your own case, ask your city or town tax collector or a Rhode Island attorney.

When Rhode Island property taxes become delinquent

In Rhode Island, the city or town where the land sits sends the tax bill and sets the due dates. Your bill shows each due date.

A payment that is not made by its due date is delinquent. Taxes are a lien on the land, so the debt stays with the lot even if you stop using it. If you own land in more than one town, each town tracks its own bill.

Penalties and interest on late taxes

State law lets each city or town set the penalty rate on late taxes. The rate must be at least 6 percent and no more than 18 percent a year. Cranston is capped at 12 percent (R.I. Gen. Laws 44-5-8).

Ask your tax collector which rate applies and for the payoff amount on the day you plan to pay. If the land goes to a tax sale, sale costs are added, and later the redemption penalty is added too.

What the county does next

In Rhode Island, the city or town tax collector, not a county, handles unpaid taxes. Before a tax sale, the collector must mail you a notice by first-class mail at least 90 days before the sale, and again by certified mail at least 40 days before it (R.I. Gen. Laws 44-9-10). The collector also advertises the sale (R.I. Gen. Laws 44-9-9).

At the sale, the collector sells the land at public auction for the taxes and costs. The buyer receives a collector's deed, but that deed is still subject to your right to redeem (R.I. Gen. Laws 44-9-12, 44-9-21). The city or town can also buy the land at the sale and later assign its tax title to someone else (R.I. Gen. Laws 44-9-14, 44-9-18). Sale dates and rules differ from town to town.

Redemption: getting your land back

After a tax sale, you can redeem by paying the sale price and a penalty. The penalty is 10 percent of the sale price if you redeem within six months of the sale, plus another 1 percent of the sale price for each month after that (R.I. Gen. Laws 44-9-19). You also repay any later taxes the buyer paid to the town, with interest at 1 percent a month, and the buyer's costs (R.I. Gen. Laws 44-9-21).

During the first year you can pay the city or town treasurer, who acts for the buyer. The treasurer gives you a certificate, and recording it clears the collector's deed (R.I. Gen. Laws 44-9-21).

One year after the sale, the holder can file a petition in Superior Court to foreclose your right to redeem (R.I. Gen. Laws 44-9-25). You can still redeem in that case by filing an answer on time, and the court can order you to pay attorney fees as well (R.I. Gen. Laws 44-9-29). Once the court enters a decree barring redemption, the title is absolute (R.I. Gen. Laws 44-9-30). Do not wait for the court case if you want to keep or sell the land.

Your options if you are behind

You have several choices. The earlier you act, the less you pay.

• Pay in full. Ask your tax collector for the payoff amount, including the penalty.
• Ask about a payment plan. State law does not set one for every town, so ask your tax collector whether one exists.
• Redeem before the deadline. After a tax sale, redeem early, because the penalty grows each month after the first six months.
• Sell the land. 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 Rhode Island land.

Selling land with back taxes in Rhode Island

You can sell land that has unpaid taxes. At closing, the back taxes, penalty and any redemption amount are paid from the sale price, and you receive the rest. The buyer gets clear title.

We buy land with back taxes, liens and title problems, and land without road access. We also buy from heirs and estates. We pay the closing costs. If a tax sale has already happened, tell us early so the redemption can be paid before the holder files to foreclose.

Where to check your tax status

Call or visit the tax collector of the city or town where the land sits. Ask for the amount owed, the penalty rate, and whether the land is on a tax sale list. The state Division of Municipal Finance has a map of the cities and towns with their tax information.

To check whether a collector's deed or a redemption certificate was recorded, look at the land records (the registry of deeds) for the city or town where the land sits.