Behind on Property Taxes in Virginia?

Back Taxes in Virginia: Your Options

This page explains what happens in Virginia when real estate taxes on land go unpaid. In Virginia, each county, city and town sets its own due dates, penalty and interest within limits in state law, and collects through its treasurer. The page covers those limits, when a locality can go to court to sell land for taxes, the faster sale for small low value lots, payment agreements, and the surplus after a sale. It is written for owners of vacant land, including heirs.

Back taxes do not stop you from selling. Until the sale date, you still own the land, and you can pay what is owed or sell the land and have the taxes paid from the sale at closing. This page is general information, not legal or tax advice. For your own case, ask the treasurer of the locality where the land is or a Virginia attorney.

When Virginia property taxes become delinquent

Virginia real estate tax is a local tax. Each county, city and town sets its own due dates by ordinance and can bill in one payment or two equal installments (Code of Virginia 58.1-3916). The treasurer of the locality collects it.

Taxes not paid by the local due date are delinquent. Because dates differ, check your bill or the treasurer's website. Land inside a town can owe both county and town taxes.

Penalties and interest on late taxes

State law sets the limits and each locality chooses its rates (58.1-3916). The penalty for late payment cannot exceed 10 percent of the tax past due, or $10 if that is greater, and never more than the tax itself. It can be added the day after the due date.

Interest can start the day after the due date at up to 10 percent a year in the first year. For the second and later years, a locality can charge up to the federal underpayment rate under Internal Revenue Code section 6621 or 10 percent a year, whichever is greater.

A locality can also recover attorney or collection agency fees it has contracted for, up to 20 percent of the delinquent taxes and charges collected (58.1-3916). If a court case is filed, court costs, publication costs and title search costs are added as well (58.1-3965).

What the county does next

Virginia does not sell tax lien certificates. Most sales for taxes go through the circuit court. A locality can sell land when taxes are still delinquent on December 31 following the second anniversary of the due date. For land with a condemned structure, a nuisance, a derelict building or blight, it can be the first anniversary. For land assessed at $100,000 or less, a court can find the land subject to sale when taxes are delinquent on December 31 following the first anniversary (58.1-3965).

At least 30 days before starting the case, the treasurer must mail notice to your last known address telling you that you can ask for a payment agreement. The treasurer also publishes a list of the land in a local newspaper (58.1-3965). The case is filed in the circuit court for the county or city where the land is, and anyone with an interest in the land is named (58.1-3967). The court then orders a sale, and the sale is confirmed by the court.

Small lots can move faster without a lawsuit. A treasurer can sell a parcel assessed at $15,000 or less at public auction once taxes are delinquent on December 31 following the third anniversary of the due date. Certain unimproved lots assessed up to $30,000, such as lots of one acre or less or lots unsuitable for building, can be sold the same way. You get notice by certified or registered mail at least 30 days before the sale (58.1-3975).

Redemption: getting your land back

In Virginia, the right to redeem ends at the sale. You can redeem at any time before the sale date by paying all accumulated taxes, penalties, interest, reasonable attorney fees and costs, including your share of the publication cost (58.1-3965). The same rule applies to the small parcel auctions (58.1-3975). Partial payment does not redeem the land and does not stop the case.

After a court sale, a former owner and heirs are entitled to the surplus above the taxes, penalties, interest, attorney fees, costs and liens. You must prove your claim. If no one claims it within two years after the court confirms the sale, the money goes to the locality (58.1-3967).

Your options if you are behind

Virginia gives owners real tools before a sale. These are the common choices. Ask the treasurer which ones fit your account.

• Pay in full. Ask the treasurer for a payoff amount, including any attorney fees.
• Ask for a payment agreement. The treasurer can suspend a sale case if you agree to pay in installments over up to 72 months and keep current taxes paid (58.1-3965). Heirs who prove an ownership interest can ask for one too.
• Redeem before the sale date by paying everything owed (58.1-3965).
• Sell the land. We make a cash offer within 24 hours, charge no fees or commissions, pay 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 Virginia land.

Selling land with back taxes in Virginia

Unpaid real estate taxes are a lien on the land, and a pending sale case is recorded as a lis pendens, so a title search will find both. That does not stop a sale. At closing, the delinquent taxes, penalties, interest and any attorney fees and costs are paid from the sale price, and you get the rest.

We buy land with back taxes, liens and title issues, land with no road access, and land from heirs and estates. If a court case or auction date is set, tell us. The payoff must be made before the sale date.

Where to check your tax status

Contact the treasurer of the county or city where the land is. If the land is inside a town, check with the town too. Many treasurers show balances online. Virginia.gov has a directory of local governments to find your locality's website. Due dates, rates and sale practice vary by locality, so confirm with the office.