How to Sell Land With Back Taxes Owed
Owing back taxes on land doesn't mean you can't sell. This guide explains your options and how to move forward.
Yes, you can sell land with back taxes. The most common approach is to pay the taxes at closing from the sale proceeds — the title company deducts the owed amount before distributing funds. You can also pay taxes before listing, or sell to a direct buyer who handles tax liens as part of the transaction.
What Happens When You Don't Pay Property Taxes
When property taxes go unpaid, the county places a tax lien on the property. Over time, this lien accrues interest and penalties. If taxes remain unpaid for an extended period (typically 3–5 years, depending on the state), the county may sell the lien to investors through a tax certificate sale or initiate a tax deed sale, which transfers ownership entirely.
According to the National Tax Lien Association, approximately $14 billion in property taxes go unpaid each year in the United States. Many of these are on vacant land parcels where owners live out of state or inherited the property without realizing the tax obligation.
Your Options for Selling
Pay taxes from sale proceeds
The title company deducts owed taxes at closing. This is the most common approach and requires no upfront payment.
Pay taxes before listing
Clear the lien first, then sell with a clean title. This may yield a higher sale price but requires upfront capital.
Sell to a direct land buyer
Companies that buy land directly often purchase properties with tax liens and handle the back taxes as part of the deal.
Before You Sell: Key Steps
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Contact the county tax collector
Get the exact amount owed, including interest and penalties.
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Check for tax certificate sales
Determine if your lien has been sold to a third-party investor.
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Verify the redemption period
Each state has a window to pay back taxes before the property is lost.
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Get a title search
Confirm the tax lien is the only encumbrance on the property.
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Estimate net proceeds
Subtract owed taxes from expected sale price to understand your take-home.
Owe back taxes on your land?
We buy land with tax liens in all 50 states. Get an offer and we'll handle the back taxes at closing.
Get startedFrequently asked questions
Will I lose my land if I don't pay property taxes?
Can I sell land with a tax lien to a regular buyer?
How much will back taxes reduce my sale price?
References
- National Tax Lien Association — Property Tax Overview (accessed 2026-08-01)
