Falling behind on property taxes is more common than most people realize. Medical emergencies, job loss, or unexpected expenses can all create situations where property taxes slip to the bottom of the priority list. If you're facing property tax delinquency in California, understanding the timeline and your options is essential.
When Does Property Become Tax-Defaulted?
In California, property taxes are due in two installments:
- First installment: Due November 1, delinquent after December 10
- Second installment: Due February 1, delinquent after April 10
If taxes remain unpaid at 12:01 a.m. on July 1 following the delinquency, your property becomes tax-defaulted. This is not the same as being sold—it's the beginning of a process that can take years.
The Five-Year Redemption Period
Here's the most important thing to understand: California gives you a substantial window to catch up. Under state law, the tax collector generally cannot sell your home until five years after the property becomes tax-defaulted.
This five-year redemption period is your opportunity to:
- Pay the full amount owed (including penalties)
- Set up an installment payment plan
- Sell the property yourself and pay off the debt
There is one exception: if your property is also subject to a nuisance abatement lien, the timeline shrinks to three years.
What Happens During Default?
Once your property becomes tax-defaulted, the clock starts ticking—but you're not immediately at risk of losing your home. Here's what to expect:
Penalties accumulate: A $15 redemption fee is added immediately, plus 1.5% per month on the delinquent amount. Over five years, this adds up significantly.
Public notices: Your property will appear on the county's delinquent property tax list, which is public record.
Right to redeem: Throughout the five-year period, you can pay the full amount owed and bring your property current.
The Installment Payment Option
If you cannot pay the full amount but want to keep your home, California offers an installment plan of redemption. Here's how it works:
- You must start the plan within five years of the tax-default date
- The plan allows you to spread payments over five years
- You must make a minimum initial payment (typically 20%)
- Missing payments can result in plan cancellation
Important: Once your property becomes subject to sale (after the five-year default period), you are no longer eligible for an installment plan.
What Is a Tax Sale?
California is a tax deed state, which means the county itself sells the property—not a tax lien to a third party. If you don't redeem your property within the five-year period, here's what happens:
- Notice requirements: The county must notify you and all interested parties (lenders, other lien holders) before scheduling a sale
- Public auction: The county conducts a tax deed sale, typically at public auction
- Minimum bid: The opening bid includes all delinquent taxes, penalties, and costs
- No right to redeem after sale: Unlike some states, California does not give you the right to buy back your property after it's sold at a tax sale
The county tax collector must attempt to sell the property within four years of it becoming subject to sale.
Your Options Before a Tax Sale
If you're facing property tax delinquency, you have several paths forward:
1. Pay What You Owe
If you can gather the funds—through savings, a loan from family, a home equity line, or other means—paying off the delinquent taxes (plus penalties) is the simplest solution.
2. Set Up an Installment Plan
Contact your county tax collector's office to discuss installment options. This works best if you have stable income but need time to catch up.
3. Sell the Property
You can sell your home at any time during the redemption period. The delinquent taxes will be paid from the sale proceeds at closing. This is often the best option if:
- You can't afford ongoing property taxes
- You need the equity for other priorities
- The property has become a financial burden
When you sell, the title company ensures all tax liens are paid before you receive your proceeds. You walk away clean, without the debt following you.
4. Loan Against Your Equity
If you have significant equity, you may be able to refinance or take out a home equity loan to cover delinquent taxes. This only makes sense if you can afford the new loan payments.
Timeline Summary
| Event | Timing | |-------|--------| | Taxes become delinquent | After December 10 or April 10 | | Property becomes tax-defaulted | July 1 following delinquency | | Redemption period | 5 years from default date | | Subject to tax sale | After 5-year redemption period | | Tax sale conducted | Within 4 years of becoming subject to sale | | Challenge period after sale | 1 year from recording of tax deed |
Acting Sooner Is Better
While California gives you five years, waiting until the last minute creates problems:
- Penalties accumulate at 1.5% per month
- Options decrease as time passes
- Stress increases as deadlines approach
- Selling becomes harder with a looming tax sale
If you're behind on property taxes and considering selling your home, getting a clear picture of your options early gives you the most flexibility. A cash sale can close quickly—often within 7-14 days—and the delinquent taxes are simply handled at closing.
What About Mortgage Lenders?
If you have a mortgage, your lender has a vested interest in preventing a tax sale. Many lenders monitor tax payments and will pay delinquent taxes on your behalf—then add the amount to your loan balance or demand immediate reimbursement.
This protects the lender's security interest but can put you in a worse position. Communication with your lender is important if you're falling behind.
Getting Help
If you're struggling with property taxes, you're not alone. Many homeowners face this situation, especially after major life changes. Understanding that you have time—and options—is the first step toward resolving the situation on your terms.
Whether you choose to catch up on payments, set up an installment plan, or sell the property, the key is taking action before the five-year window closes.