Can You Sell Land With Back Taxes? Yes, Here Is How It Works
Updated September 2026 by Cooper and Jennifer Best, Best Land Holdings.
Owing back taxes on land you do not use is more common than most people think. The bill arrives once a year, the land sits empty, and it slips down the list. Sometimes the bill was going to an old address or a relative who passed away. Whatever the reason, the important thing to know is this: back taxes do not stop you from selling. They are simply paid off when the sale closes.
How back taxes are paid at closing
When you sell, the title company or closing attorney requests a payoff from the county for everything owed: unpaid taxes, penalties, interest and any fees. On closing day, that amount is paid directly to the county out of the sale price. You do not need to bring money to closing or pay the county first.
Here is a simple example. Say you accept an offer of $20,000 and owe $2,600 in back taxes and penalties. At closing, $2,600 goes to the county and you receive the rest. (When you sell to us, we pay the normal closing costs, so those do not reduce your amount.) A good buyer shows you this math in writing before you sign anything.
Why timing matters
Every state has a process for collecting unpaid property taxes, and they differ a lot. In general:
- Penalties and interest keep growing the longer taxes go unpaid, which reduces what you keep.
- Many states sell tax liens or tax certificates to investors. The investor earns interest, and after a waiting period can pursue the property.
- Other states sell the property itself at a tax sale or tax deed sale after a set number of years.
- Redemption periods give owners a window to pay and keep the land, but once they end, the owner can lose the property and any equity in it.
The exact timelines vary by state and county. If you are behind, call the county tax office and ask two questions: "How much is owed today?" and "When is the next tax sale date for my parcel?" If a sale date is close, tell any buyer immediately so closing can happen first.
Other liens that can come up
- Judgment liens attached to the owner. These are usually paid or negotiated from proceeds.
- Old mortgages that were paid off but never released. The title company obtains a release or uses an affidavit to clear them.
- Property owners' association (POA/HOA) dues in recreational subdivisions. Paid off at closing like taxes.
- Mowing, demolition or code enforcement liens from a city or county. Also paid from proceeds.
- Federal or state tax liens against the owner. These take more coordination but can often be resolved at closing.
How to look up what you owe
Search your county's treasurer, tax collector or tax commissioner website by owner name or parcel number. Many show several years of history and a current payoff. If you cannot find it, send us the county and parcel number and we will look it up with you.
What if the land is already in a tax sale process?
Act quickly, but do not panic. If the property has not been sold yet, you can usually still sell it and pay off the taxes at closing. If a lien or certificate has been sold to an investor, the redemption amount is paid at closing instead. If the property has already been sold at a tax deed sale, contact the county right away about any redemption rights or excess proceeds you may be entitled to.
What if I owe more than the land is worth?
It happens, especially with small or remote lots and years of penalties. Be upfront with the buyer. Sometimes a sale still makes sense because it stops the debt from growing and removes future bills. Sometimes it does not, and we will tell you so.
Frequently asked questions
Do I need to pay the back taxes before I sell?
No. They are paid from the sale proceeds at closing.
Will back taxes lower my offer?
They do not change the land's value, but they do come out of your proceeds. We show the price, the estimated payoff and your net in writing.
Can I sell if a tax lien certificate was sold on my land?
Usually yes. The redemption amount is paid at closing.
How fast can you close if a tax sale is coming up?
Often in two to three weeks when title is clear. Tell us the sale date right away.
Related guides
Get a real number for your land
Call or text 720-807-7989 with your county and parcel number, or request a written cash offer. You will get a written offer, usually within 48 hours, with the comparable sales and details behind it. There is no cost and no obligation.
This guide is general information, not legal, tax or financial advice. Rules vary by state and county; confirm your situation with a local attorney, title company or tax professional.