Falling behind on property taxes usually happens quietly. A mortgage gets paid off and the escrow account goes with it, a parent’s bills stop getting opened, or money gets tight and the tax bill goes to the bottom of the pile. In Maryland, unpaid property taxes don’t just accumulate interest. They can eventually be sold as a lien at a county tax sale, and that adds real costs. Handling overdue property taxes on a Westminster house? See how I buy houses in Westminster.
I’m Evan Weissman. I buy houses across Maryland, some of them with tax problems. Here’s how the process generally works and what you can do at each stage. Rules vary by county, so always check with your county’s tax office.
How the timeline usually runs
Maryland’s tax year runs July 1 through June 30, and county bills typically go out in July. If they aren’t paid, the county adds interest and penalties and eventually sends notices that the property may be included in the next tax sale.
Each county runs its own sale on its own date. The State Department of Assessments and Taxation tax sale schedule lists the 2026 dates. For example, it shows Frederick and Prince George’s on May 11, Anne Arundel, Howard, and Harford on June 3, Montgomery on June 8, and Baltimore County on August 27.
At a tax sale, the county sells a tax sale certificate, which is a lien on the property, not the house itself. You still own the house. But the certificate holder can eventually file to foreclose your right to redeem if you don’t pay.
Before the sale: options worth trying first
Call the county treasurer or finance office. Ask exactly what you owe, the date the property would go into the sale, and the last day to pay before it’s included. Some counties offer payment plans or can tell you about programs for homeowners.
Check for tax credits. Maryland’s Homeowners’ Property Tax Credit can reduce bills for eligible owner-occupants based on income. The application is through SDAT. Some counties also have local credits for seniors or veterans.
Look at your escrow situation. If your mortgage servicer was supposed to pay the taxes from escrow and didn’t, call them right away.
Get free help. The State Tax Sale Ombudsman’s tax sale information page explains the process and how to reach the ombudsman’s office. SDAT’s tax sale resources page lists additional help. In Baltimore City, the city’s tax sale prevention resources and legal clinics are a good starting point; my Baltimore City tax sale guide has the details.
Sell before the sale date. If you can’t afford to keep the house, selling it before the tax sale lets the overdue taxes be paid off at settlement, without the added costs a tax sale brings.
After the sale: redemption
If the property goes through a tax sale, you generally still have the right to redeem by paying what’s owed plus interest and certain costs. Under Tax-Property section 14-820, the default redemption interest rate is 6% a year unless a county sets its own rate, and for owner-occupied residential property the rate is capped at 10%.
Costs grow over time. Under Tax-Property section 14-833, the certificate holder can’t file to foreclose the right of redemption on owner-occupied residential property until 9 months after the sale (6 months for other property), and must send notices first. Once they file, attorney fees and other costs add up. My article on redeeming a property after a Maryland tax sale walks through the steps.
Selling a house with delinquent taxes
You can sell a house that has unpaid taxes, and even one that’s gone through a tax sale, as long as the right to redeem hasn’t been foreclosed. Here’s how it typically works:
- The title company orders a lien certificate or payoff from the county.
- If a tax sale certificate exists, they get a redemption figure from the county.
- At settlement, the overdue taxes, interest, and costs are paid from your proceeds.
- The county releases the lien and the buyer gets clean title.
This works with a listing or a cash sale. The main question is timing: if a foreclosure of the right to redeem is already in court, talk to an attorney right away.
When the house is inherited
Tax problems are common with inherited houses because nobody’s watching the mail. If a parent passed away and the taxes went unpaid, the personal representative can usually use estate funds or the sale proceeds to catch up. Get the estate open quickly so someone has authority to deal with the county. My inherited house page covers more.
A quick checklist
- Find out exactly what you owe and the tax sale date.
- Ask about payment plans and tax credits.
- Contact the State Tax Sale Ombudsman if you need help understanding your options.
- If the property has already been sold at tax sale, get a redemption amount from the county.
- Decide whether to pay, refinance, or sell, and act before costs grow.
Can I lose my house for unpaid property taxes in Maryland?
Yes, eventually. A tax sale itself sells a lien, but if you don’t redeem, the certificate holder can go to court to foreclose your right of redemption. Acting early keeps costs down and keeps your options open.
How much interest do I pay to redeem after a tax sale?
State law sets a default of 6% a year unless the county sets its own rate, and owner-occupied residential property is capped at 10%. Costs and fees can also be added.
Can I sell my house if it’s been sold at tax sale?
Usually, yes, as long as the right of redemption hasn’t been foreclosed. The title company gets a redemption amount and pays it from your sale proceeds.
Where can I get free help with a Maryland tax sale?
Start with the State Tax Sale Ombudsman through SDAT and your county’s tax office. Local legal aid organizations and housing counselors may also help.
Talk through your situation
If you’re behind on property taxes and want to compare your options, call or text me at (410) 498-7473. I can explain how a sale would pay off the taxes so you can decide what makes sense.