In California, you generally have five years to get current on delinquent property taxes. Otherwise, you could lose your home in a tax sale.
If you don't pay your California property taxes, you could eventually lose your home through a tax sale. But a sale can't happen until five years after the property is tax-defaulted.
In this article, you'll learn what notice you'll get before a California tax sale, how the tax sale process works, and whether you can get your home back after a property tax sale.
What Is a Property Tax Lien?
If you own real property, you're responsible for paying property taxes on that property. The government uses that tax money to pay for schools, public services, libraries, roads, parks, and the like. Usually, the tax amount is based on the assessed value of the property.
When a homeowner doesn't pay the property taxes, the overdue amount becomes a lien on the home. A lien effectively makes the property act as collateral for the debt.
What Happens if You Don't Pay Property Taxes in California
All states, including California, have a process that allows the taxing authority to sell a home to collect delinquent taxes. (Learn about your options to avoid a tax sale if you can't keep up with the property taxes.)
Property Tax Sales in California
Property on which taxes remain unpaid at 12:01 a.m. on July 1 becomes what's known as "tax-defaulted" land. In most cases, if the property is tax-defaulted for at least five years, the county tax collector has the power to sell that property to satisfy the delinquent taxes. (Cal. Rev. & Tax. Code § 3362). (In the case of a nuisance abatement lien, the property becomes subject to the tax collector's power to sell after three years. Cal. Gov. Code § 38773.5).
Most tax-defaulted homes are sold at a public auction. Though, the sale could be through a sealed bid sale, or through a negotiated sale to a public agency or qualified nonprofit organization.
How You'll Find Out About a Tax Sale
In California, the tax collector must give you a written notice, as well as contact you personally, if possible, before selling your home at a tax sale.
Notice Before a Tax Sale
Under California law, the tax collector must send a notice of the proposed sale by certified mail not less than 45 days nor more than 120 days before the sale to your last known mailing address. (Cal. Rev. & Tax. Code § 3701). It must also publish the notice in the newspaper or, if there are no newspapers in the area, post the notice in three public places. (Cal. Rev. & Tax. Code § 3702).
Tax Collector Usually Must Also Try to Contact You Personally
If the home is your primary residence, the tax collector must make a reasonable effort to personally contact you (the owner-occupant) not more than 120 days nor less than ten days before the sale. If the collector is unable to contact you, the collector must try to serve you a written notice not less than five days before the sale. (Cal. Rev. & Tax. Code § 3704.7).
How to Stop a Tax Sale in California: Pay the Delinquent Amounts
You get five years after you fall behind in taxes to get current on the delinquent amounts. Paying off the debt is called "redeeming" the home. After five years, if you don't redeem, the tax collector can sell your home. (Cal. Rev. & Tax. Code § 3691).
You may choose to pay the delinquent amounts in installments at any time up until 5:00 p.m. on the last business day prior to the date when the tax collector gets the right to sell the property. (Cal. Rev. & Tax. Code § 4217). So long as you keep up on the installments, the collector can't proceed with a sale. (Cal. Rev. & Tax. Code § 4218).
How Do Tax Sales Work?
Again, most tax sales in California are public auctions. (Cal. Rev. & Tax. Code § 3693). At the auction, the winning bid must be at least as much as the amount it would cost for you to redeem the home, plus costs, which includes:
- the amount of the defaulted taxes
- delinquent penalties and costs
- redemption penalties, and
- a redemption fee. (Cal. Rev. & Tax. Code § 3698.5).
Generally, You Can't Redeem Your California Home After a Tax Sale
In California, you don't get the right to redeem the home after the sale. Your right to redeem expires at the close of business on the last business day prior to the sale date. (Cal. Rev. & Tax. Code § 3706, § 3707). If you send in the redemption amount via mail or any other method, the tax collector must receive it by that deadline. (Cal. Rev. & Tax. Code § 3707). California law doesn't provide an extended right of redemption after the sale as in some other states.
But if your home doesn't sell or the purchaser who bought it at the sale backs out of the deal, your right to redeem revives. (Cal. Rev. & Tax. Code § 3693.1, § 3707).
Talk to a Lawyer
If you're facing a property tax sale in California—or you need help redeeming your property—consider talking to a foreclosure lawyer or a real estate lawyer.
FAQs
When a homeowner doesn't pay the property taxes, the overdue amount becomes a lien on the home. A lien effectively makes the property act as collateral for the debt. All states, including California, have a process that allows the taxing authority to sell a home to collect delinquent taxes.
How long can you go without paying property taxes in CA? ›
Your taxes can remain unpaid for a maximum of five years following their tax default, at which time your property becomes subject to the power of sale.
What happens if you can t afford property taxes in California? ›
If you don't pay the taxes by the date the property is offered for sale or acquisition, the property will be sold at a public auction or purchased by a public agency after giving official notice of the impending sale.
What happens when property taxes are delinquent California? ›
If taxes remain unpaid for five years following their tax default, the property becomes subject to the Power of Sale. This means the property may be sold at a public tax sale auction or acquired by a public agency if you do not pay (redeem) the taxes before the date the property is offered for sale or acquisition.
Can you avoid property tax in California? ›
California offers a variety of property tax exemptions for homeowners, disabled veterans, senior citizens, and nonprofit organizations. Special property tax exemptions and programs, such as Propositions 13, 58, and 193, provide additional tax relief for specific groups of taxpayers.
Is property tax mandatory in California? ›
If you own real property in California, you will be required to pay real property taxes. So, if you own any real property as an individual or business, you pay real property tax on it. Even if the real property was gifted to you through an estate or you own a rental real property, you are still required to pay it.
What is the property tax rule in California? ›
Understanding Property Tax Limits
Under Proposition 13, property taxes are limited to one percent of the assessed value. Additional property taxes may be approved for schools or local projects, which can vary amongst communities and bring the tax rate higher than one percent.
What is the age 55 property tax rule in California? ›
If you are over age 55, you may sell your primary residence, buy another residence, and transfer the base year value as long as all the other requirements (timing, value, residency, timely filed claim) are met. It does not matter how you acquired your original property.
Who has the lowest property taxes in California? ›
Marin County collects the highest property tax in California, levying an average of $5,500.00 (0.63% of median home value) yearly in property taxes, while Modoc County has the lowest property tax in the state, collecting an average tax of $953.00 (0.6% of median home value) per year.
How often do you pay property tax in California? ›
The county tax collector is responsible for preparing property tax bills. Bills for the regular secured assessment roll (generally real property) are mailed by November 1 and are due in two equal installments. The first installment is due November 1 and becomes delinquent December 10.
As provided by the California Constitution, certain qualified properties are exempt from paying property taxes. Examples include properties used exclusively for religious, scientific, hospital or charitable purposes.
Can I freeze my property taxes in California? ›
The State Controller's Property Tax Postponement Program allows homeowners who are seniors, are blind, or have a disability to defer current-year property taxes on their principal residence if they meet certain criteria, including at least 40 percent equity in the home and an annual household income of $51,762 or less ...
How do I buy delinquent land taxes in California? ›
Properties become subject to the County Tax Collector's power to sell because of a default in the payment of property taxes for five or more years. These properties may be purchased at one of our many online public auctions; there are no tax lien certificates or over the counter sales.
What is the property tax loophole in California? ›
19 would narrow California's property tax inheritance loophole, which offers Californians who inherit certain properties a significant tax break by allowing them to pay property taxes based on the property's value when it was originally purchased rather than its value upon inheritance.
What does it mean to homestead your home in California? ›
A homestead protects some of the equity in your home. If your home is worth more money than you owe on it, you have equity. For example, if your home is worth $350,000 and you owe $300,000, you have $50,000 in equity. A homestead can protect the $50,000. There are two types of homesteads, automatic and declared.
Is California a high property tax state? ›
California's property taxes were 10th highest, at an average of $6,025 a year, yet the state has a much higher median home value of $792,787. What gives?
What is the one time property tax exemption in California? ›
The California Constitution provides a $7,000 reduction in the taxable value for a qualifying owner-occupied home. The home must have been the principal place of residence of the owner on the lien date, January 1st.
At what age can you freeze your property taxes in California? ›
If you are age 55 or older, you may have a significant equity in your home. California provides a special homestead exemption for seniors age 65 and over, people who are disabled, and people age 55 and over with low incomes.
Can seniors stop paying property taxes in California? ›
The State Controller's Property Tax Postponement Program allows homeowners who are seniors, are blind, or have a disability to defer current-year property taxes on their principal residence if they meet certain criteria, including at least 40 percent equity in the home and an annual household income of $51,762 or less ...
How many times do you pay property tax a year in California? ›
The Annual Secured Property Tax Bill has two payment stubs. You may pay each installment individually or both installments simultaneously. The 1st installment payment is due on November 1 and becomes delinquent on December 10. The 2nd installment payment is due on February 1 and becomes delinquent on April 10.
