October 25, 2026 · Joe Hall
What Happens If You're Behind on Property Taxes in California?
The short answer
In California, property taxes still unpaid at the end of June 30 become tax-defaulted. A redemption fee and penalties of 1.5 percent per month are added. You can redeem in full or start a five-year payment plan. If taxes stay unpaid five years after default, a home becomes subject to the tax collector's power to sell at auction.
From delinquent to defaulted
Each property tax installment has a due date. Miss it and the bill is delinquent, with a penalty added. If any taxes from that tax year are still unpaid at the close of business on June 30, the property becomes tax-defaulted.
The Ventura County Treasurer-Tax Collector explains that once a property is tax-defaulted, a $15 redemption fee is added and additional penalties begin to accrue at 1 1/2 percent per month. Those penalties add up quickly on a large bill.
Your options to catch up
- Redeem in full. Pay all defaulted taxes, penalties and fees.
- Five-year payment plan. Counties offer installment plans for defaulted taxes. In one county's terms, for example, you pay at least 20 percent of the redemption amount up front plus the current year's taxes, then pay the balance in installments over five years while staying current. Ask your county tax collector for its exact terms.
- Refinance. If you have equity and qualifying income, a new loan can pay off the taxes. Note that if you have a mortgage, your lender may pay the taxes itself and add them to your balance or escrow account.
- Sell. Escrow pays the defaulted taxes from your proceeds at closing.
The five-year deadline
Taxes can remain unpaid for a maximum of five years after the first default. After that, residential property becomes subject to the tax collector's power to sell under Revenue and Taxation Code section 3691, and it may be sold at public auction or acquired by a public agency. Nonresidential commercial property can be subject to sale after three years.
You can generally still redeem until the close of business on the last business day before the auction. But by then, there is little room to sell on your own terms. If you are years behind, act long before the deadline.
This is general information, not legal or tax advice. Talk to a California attorney, a CPA, or a HUD-approved housing counselor about your situation.
Why selling before a tax sale protects you
A tax sale buyer pays what the market will bear at auction, and the process is designed to collect taxes, not maximize your price. Selling yourself lets you get market value, or at least a fair cash price, and keep the equity after the taxes are paid.
Property tax problems often come with other pressures: a mortgage that is also behind, an inherited house no one can afford to keep, or a home that needs repairs. If you are also behind on the mortgage, read selling a house in foreclosure.
How Joe Hall can help
Joe Hall has completed more than 300 lien strips, clearing back taxes and historical debt to make properties marketable again. He can look at what is owed and tell you honestly whether a payment plan, a listing or a cash sale makes the most sense.
Sold Like That works with his pool of verified cash buyers. You usually get an offer within 24 hours and can close in as little as 15 days, with the taxes paid off through escrow. A cash sale is usually below what the house would bring on the open market. That discount is the price of speed and certainty. If listing would net you more, Joe Hall is a licensed Realtor and you will hear that too.
What to do this week
- Get your current redemption amount from the county tax collector.
- Ask about the five-year plan and what it would cost per year.
- Find out the year your property first defaulted, so you know your deadline.
- Get a market value, so you know your equity.
- Compare a plan, a refinance and a sale side by side.
Ready for a number? Get your cash offer.
Quick answers
How many years can you go without paying property taxes in California?
Taxes can remain unpaid for up to five years after the first default. After that, a residential property becomes subject to the tax collector's power to sell.
What is the penalty for late property taxes in California?
After a property becomes tax-defaulted, a redemption fee is added and penalties accrue at 1.5 percent per month on the unpaid taxes.
Can I sell my house if I owe back property taxes?
Yes. Escrow pays the defaulted taxes, penalties and fees from your proceeds at closing.
Is there a payment plan for back property taxes?
Yes. California counties offer five-year installment plans for defaulted taxes. Terms vary, so ask your county tax collector.
Can I stop a tax sale at the last minute?
You can generally redeem until the close of business on the last business day before the auction, by paying the full redemption amount.
Does my mortgage lender pay my property taxes if I fall behind?
Many lenders pay delinquent taxes to protect their lien and then add the amount to your loan or escrow account, which raises your payment. Check your loan documents and statements.
Behind on property taxes and running out of time? Get a cash offer from Sold Like That, usually within 24 hours, or call 805-222-6925 to talk with Joe Hall's team.
Sources
Written by Joe Hall, Realtor, CalRE #01336123, Westlake Village. About Joe. Nothing here is legal, tax or financial advice.
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