If you have a tax lien on your property in California, ignoring it will not make it disappear. The lien stays attached to your title, and the debt grows with penalties under California Revenue and Taxation Code. The consequences get worse the longer you wait. But there is one thing most people get wrong about tax liens: having one does not mean you are stuck. You can still sell your property. The lien is usually paid through escrow at closing, whether it’s a county property tax lien, a California Franchise Tax Board lien, or an IRS federal tax lien. If you’re also facing foreclosure in California and want to sell, see our in depth guide.
At Quick Home Offers®, about 1 in 4 of the properties we have taken on had a lien beyond the mortgage. Tax liens are among the most common. Adam and Josh Justiniano have been handling these transactions across California since 2013, and in nearly every case, the lien is resolved through escrow without the seller paying anything out of pocket before closing.
Quick Answer: How Do You Sell a House With a Tax Lien in California?
Yes, you can sell a house with a tax lien in California, but the lien must be paid at closing. Escrow usually pays it from your sale price, so you do not pay it up front. Escrow finds the lien in the title search, gets the payoff amount and pays it before you get your money. You do not have to clear the lien before you list or accept an offer. California has three kinds of tax liens.
The three kinds are county property tax liens, state income tax liens from the Franchise Tax Board, and federal liens from the IRS. If county property taxes go unpaid for five years, the county can sell the house at auction. If your liens add up to more than the house is worth, talk with a tax attorney first.
About 1 in 4 of the properties Quick Home Offers® has taken on had a lien beyond the mortgage. We cover the seller’s closing costs.
What Is a Tax Lien?
A tax lien is a legal claim the government places on your property when you owe unpaid taxes. It does not mean the government is taking your home. It means they have secured their interest in your property, so the debt gets paid before your title can transfer to a new owner.
Tax liens get recorded with your county recorder’s office and show up on any title search. That means they will surface the moment you try to sell, refinance, or transfer the property. Until the lien is satisfied, your title is not clear. There are three main types of tax liens California homeowners run into, and each one works differently. About 1 in 4 of the properties Quick Home Offers® has taken on had a lien beyond the mortgage.
Property Tax Liens in California
When you fall behind on property taxes, the county automatically places a lien on your property. You do not receive a separate notice about the lien itself because it happens by operation of law. The moment your property taxes become delinquent, the lien exists.
Most homeowners with a mortgage have their regular property taxes paid through an escrow impound account. But not every property tax bill goes through that account. Supplemental tax bills, escape assessments, and Mello-Roos or special bond assessments are billed separately and sent directly to the homeowner. If you do not realize these bills exist, they go unpaid, and the county treats them the same as any other delinquent property tax.
Supplemental taxes are triggered when a property changes ownership, such as through an inheritance or new construction is completed. The county reassesses the property and sends a separate bill for the difference between the old and new assessed value, prorated for the remainder of the tax year.
Escape assessments happen when the county discovers property was under-assessed in a prior year and issues a corrected bill.
Mello-Roos and bond assessments are voter-approved charges tied to community facilities districts and show up as separate line items that are not always captured by a mortgage servicer’s impound account.
We see this regularly. A homeowner finds out they have a delinquent tax balance they never knew about because the bill went to the wrong address, or they assumed their mortgage company was handling it. By the time they discover it, penalties have been accruing.
Here is what happens if you let it sit. California charges a 10% penalty on delinquent property taxes, plus 1.5% per month in additional penalties after certain deadlines. Those costs add up fast. If property taxes remain unpaid for five years, the county can sell your property at a tax sale to recover the debt. Under California Revenue and Taxation Code §3691, the tax collector must attempt to sell tax-defaulted property that has been delinquent for five or more years. A declared disaster can pause that five-year clock, and some counties can delay sales for owners who may qualify for property tax postponement.
This is not a theoretical risk. Counties across California conduct tax-defaulted property auctions regularly. But here is the reality: most homeowners resolve the issue long before it gets to that point, often by selling the property and paying the tax debt through escrow. In nearly every case, the liens on homes Quick Home Offers® has taken on were paid through escrow, and the seller did not pay out of pocket.
How Long Do I Have to Pay Back Property Taxes Before the County Can Sell My House in California?
You usually have five years. California lets the county tax collector sell a home after its property taxes have been in default for five years or more (Revenue and Taxation Code §3691). You can still pay what you owe and keep the house through the last business day before the sale starts.
When Does the Five-Year Clock Start?
In California, the five-year clock starts when unpaid property taxes go into default at 12:01 a.m. on July 1 (§3436). Before that, each half of the tax bill becomes late on its own date. The first half is late after December 10, and the second half is late after April 10. Each late half picks up a 10% penalty (§2617 and §2618). Default is the county’s word for taxes still unpaid when the tax year ends.
What Does It Mean to Redeem a Tax-Defaulted House in California?
To redeem means to pay off everything the county says you owe on the property. That includes the back taxes, penalties, costs, and a $15 redemption fee for each parcel (§4102). Starting July 1 of the year the taxes go into default, the county adds a redemption penalty of 1.5% a month until you pay (§4103). Your right to redeem ends at the close of business on the last business day before the tax sale begins (§3707). If the sale does not happen, the right to redeem comes back.
Can I Pay Back Property Taxes in Installments in California?
In many cases, yes. You can start a five-year payment plan by paying at least 20% of the amount you owe (§4219). You have to start it before the county gets the power to sell (§4217). Each year after that, you pay your current taxes on time plus enough to stay on schedule. The unpaid balance grows by 1.5% a month (§4220 and §4221). While you keep up with the plan, the county cannot use its power to sell, and your right to redeem stays open (§4218). If you miss a required payment, the plan ends, and you may not be able to start a new one before a sale. Some counties also charge a fee to set up a plan.
Will the County Warn Me Before It Sells My Home?
Yes. Each year, on or before June 8, the tax collector publishes a notice of its power to sell (§3361). Your home may get a personal visit too. If county records show it is your main residence, the tax collector must try to reach you in person 10 to 120 days before the sale. That contact must explain your right to redeem. If it does not work, the tax collector must try to give you written notice at least five days before the sale (§3704.7).
What Happens to the Money If the County Sells My House?
You may be able to claim any leftover money. If a tax sale brings in more than what was owed, the extra money is called excess proceeds. Former owners and others who held an interest in the property can file a claim with the county. The claim must be filed within one year after the tax collector’s deed to the buyer is recorded (§4675).
What this can mean for you: If you plan to sell, back property taxes are usually paid out of the sale price through escrow at closing. A tax default does not stop a sale on its own. The date that matters most is the last business day before your county’s auction. After that, the right to redeem is gone. If you are close to that date, call your county treasurer-tax collector for an exact payoff amount and the sale date. Quick Home Offers® can make a cash offer within 1 business day when a sale date is close.
Who Do I Call About Delinquent Property Taxes in California?
Call the treasurer-tax collector in the county where the house sits. That office sends the tax bills, tracks taxes in default, runs payment plans, and holds tax sales. Ask for your exact payoff amount, which may be called the redemption amount, and whether a sale date has been set.
Each county has its own office and sets its own sale dates and payment plan fees. The California State Board of Equalization keeps a list of all 58 county tax collectors with their phone numbers.
What this can mean for you: If you are selling, your escrow company can usually request the payoff from the county for you. The back taxes are then paid from the sale proceeds at closing. Quick Home Offers® pays both sides of escrow and title fees when you sell.
This is general information, not legal advice. For help with your situation, talk with a California real estate attorney or your county tax collector.
California Franchise Tax Board (FTB) Liens
If you owe unpaid state income taxes, the California Franchise Tax Board can record a Notice of State Tax Lien against your property. According to the FTB, when you owe a tax debt, the FTB automatically has a statutory lien. It attaches to all California real and personal property you own. If you do not respond to their letters, pay in full, or set up a payment plan, they will record the lien publicly.
Once an FTB lien is recorded, it shows up on title searches and can appear on your credit report. It stays in effect for 10 years from the date of recording unless the FTB extends it.
Here is what most people do not know: if you are selling your property, the FTB has a process specifically designed to handle lien payoffs through escrow. Your escrow or title company submits a payoff request through the FTB’s eDemand system. Once the FTB processes the request and receives payment from the sale proceeds, they release the lien. This is described directly on the FTB’s own website at ftb.ca.gov. If there is not enough equity in the property to cover the full lien amount, the FTB also has a process for insufficient funds in escrow and short sale situations. Quick Home Offers® covers the seller’s closing costs, and an FTB lien is paid from the sale proceeds through escrow.
IRS Federal Tax Liens
If you owe unpaid federal income taxes, the IRS can file a Notice of Federal Tax Lien. According to the IRS, this lien protects the government’s interest in all your property, including real estate, personal property, and financial assets. A federal tax lien attaches after the IRS assesses the tax, sends you a bill, and you neglect or refuse to pay. Once filed, the lien is public record and affects your ability to sell or refinance.
The IRS will release a federal tax lien within 30 days after you pay your tax debt in full. If you cannot pay in full, the IRS offers options, including installment agreements and offers in compromise. In a property sale, the IRS lien can be paid from the sale proceeds through escrow, just like state and county tax liens. Quick Home Offers® has closed 300+ transactions since 2013 across California.
Can You Sell a House With a Tax Lien in California?
Yes. This is one of the most common misunderstandings we encounter. Sellers call us convinced they cannot sell their home because of a tax lien. That is not how it works. When you sell a property with a tax lien, the escrow company identifies the lien during the title search, obtains a payoff demand from the taxing authority, and pays the lien directly from the sale proceeds at closing. The lien is released, the buyer receives clean title, and the seller walks away without the debt.
This is standard procedure; title companies and escrow officers handle tax lien payoffs every day across California. You do not need to pay off the lien before listing or accepting an offer. We have closed over 300 transactions across California since 2013. About 1 in 4 of the properties Quick Home Offers® has taken on had a lien beyond the mortgage. Those include property tax liens, FTB liens, and IRS liens. In nearly every case, the lien was paid through escrow and the seller did not have to come out of pocket for it.
If you owe more in liens than the property is worth, that is a more complex situation and deserves further discussion with a tax attorney. However, in most cases where there is equity in the property, selling and clearing the lien through escrow is straightforward.
Dealing with tax liens and just want to sell as-is and be done?
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What Are Your Options With Tax Liens?
Pay the lien directly
If you can afford it, contact the taxing authority and pay the full amount. For property taxes, contact your county tax collector. For FTB liens, log in to MyFTB or call 916-845-4350. For IRS liens, contact the IRS directly or work with a tax professional. Once paid, the lien will be released.
Set up a payment plan
Both the FTB and IRS offer installment agreements. County tax collectors often allow partial payments on delinquent property taxes. A payment plan will not remove the lien immediately, but it prevents the situation from getting worse.
Sell the property
Selling the property is a clean exit if you do not want to deal with the tax debt yourself. It also works when the debt is too large to pay out of pocket. The lien gets paid from the proceeds. You walk away without the debt. Oftentimes, this is a good choice if you cannot afford the lien – the fees and penalties will continue to add up, costing you more money over the long-run. Quick Home Offers® can close in as little as 7 days.
Other Types of Liens
Tax liens are one of several lien types that can attach to California property. Judgment liens, mechanic’s liens, HOA liens, child support liens, and code enforcement liens each follow different rules. The rules cover how they are recorded, how long they last, and whether the amount can be negotiated down.
Quick Home Offers® covers every type in our complete guide to selling a house with a lien in California. That includes what happens when the company that recorded a lien no longer exists. If you are dealing with any lien on a California property and want to talk through your options, call us at 805-870-5749.
Where Quick Home Offers® Buys Houses With Tax Liens in California
Quick Home Offers® buys houses with tax liens all over California. Each county has its own tax office. Fees, deadlines and sale dates change from county to county. Here is what to know about back property taxes in each area we serve.
Who buys houses with tax liens in Kern County?
Quick Home Offers® buys houses with tax liens in Kern County, California, including Bakersfield. We have closed 75+ transactions in Kern County since 2013.
Good to know:
- Tax office: Kern County Treasurer-Tax Collector
- Phone to Tax Office: 661-868-3490
- Your right to pay off back taxes ends at 5 p.m. on the last business day before the tax sale.
- Kern County holds its tax sales online.
- The county warns that most title companies won’t insure a home sold at its tax sale for at least a year.
- Kern County can add unpaid code fines and cleanup costs to the property tax bill. See our Kern County code case study for how often a County lien followed a code case.
Who buys houses with tax liens in Santa Barbara County?
Quick Home Offers® buys houses with tax liens in Santa Barbara County, California, including Santa Barbara, Santa Maria and Lompoc. Most of our sales close in 7 to 30 days.
Good to know:
- Tax office: Santa Barbara County Treasurer-Tax Collector, 105 East Anapamu Street, Room 109, Santa Barbara.
- Phone to Tax Office: 805-568-2920. Santa Maria branch: 511 East Lakeside Parkway, (805) 346-8330.
- A five-year payment plan costs $175 to open, plus at least 20% of what you owe.
- Plans opened between April 11 and June 30 need current taxes and penalties paid in full first.
- The county says its tax sales happen rarely.
Who buys houses with tax liens in Los Angeles County?
Quick Home Offers® buys houses with tax liens in Los Angeles County, California, including Los Angeles, Long Beach, Lancaster and Palmdale. In nearly every case, the liens on homes we have taken on were paid through escrow, and the seller did not pay out of pocket.
Good to know:
- Tax office: Los Angeles County Treasurer and Tax Collector, Kenneth Hahn Hall of Administration, 225 North Hill Street, First Floor Lobby, Los Angeles.
- Phone to Tax Office: 213-974-2111, or toll-free 888-807-2111.
- The county’s Five-Pay Plan costs $75 each time one is opened.
- A home must be less than five years in default to start a plan.
- Current taxes must be paid by April 10 each year of the plan.
- The county suggests asking your mortgage lender before you apply.
Who buys houses with tax liens in Ventura County?
Quick Home Offers® buys houses with tax liens in Ventura County, California, including Ventura, Oxnard, Thousand Oaks and Simi Valley. Our company is based in Ventura County. Adam speaks directly to every seller about their situation.
Good to know:
- Tax office: Ventura County Treasurer-Tax Collector, 800 South Victoria Avenue, Ventura.
- Phone to Tax Office: (805) 654-3744
- The county adds a $15 redemption fee when taxes default, then 1.5% a month on the unpaid taxes.
- For a payoff amount, have the parcel number from an old tax bill, or your address. Also give the date you plan to pay.
- If a payment plan falls through, a new one cannot start until July 1 of the next tax year.
Who buys houses with tax liens in San Bernardino County?
Quick Home Offers® buys houses with tax liens in San Bernardino County, California, including San Bernardino, Fontana, Rialto, Victorville and Hesperia. We can close in as little as 7 days when a sale date is close.
Good to know:
- Tax office: San Bernardino County Treasurer-Tax Collector, 268 West Hospitality Lane, First Floor, San Bernardino.
- Phone to Tax Office: (909) 387-8308
- The county’s fee schedule lists $103 to start a five-year payment plan.
- San Bernardino County holds its tax sales online.
- Your right to pay off back taxes ends at 5 p.m. on the last business day before the sale.
- If you mail in a payoff, use a cashier’s check or money order made out to SBC Tax Collector.
Who buys houses with tax liens in Riverside County?
Quick Home Offers® buys houses with tax liens in Riverside County, California, including Riverside, Moreno Valley, Corona and Temecula. We cover the seller’s closing costs.
Good to know:
- Tax office: Riverside County Treasurer-Tax Collector, 4080 Lemon Street, 4th Floor, Riverside.
- Phone to Tax Office: (951) 955-3900. Callers in the 951 and 760 area codes can use the free line, (877) 748-2689.
- On a payment plan, you make one payment a year for five years, plus each year’s regular taxes, by April 10.
- All the years that are behind get paid together.
Who buys houses with tax liens in San Diego County?
Quick Home Offers® buys houses with tax liens in San Diego County, California, including San Diego, Chula Vista, Oceanside and Escondido. 1 in 4 of the properties we have taken on had a lien beyond the mortgage, such as a tax lien.
Good to know:
- Tax office: San Diego County Treasurer-Tax Collector, 1600 Pacific Highway, Room 162, San Diego.
- Phone to Tax Office: 1-877-829-4732
- Email: taxman@sdcounty.ca.gov
- A five-year payment plan costs $89 to start, plus at least 20% of what you owe and all current taxes.
- Each year after, by April 10, you pay at least 20% more, plus interest, current taxes and an $85 fee.
- The deadline to start is 5 p.m. on the last business day of the fifth tax year after default.
- A plan does not stop a mortgage foreclosure.
Who buys houses with tax liens in Sacramento County?
Quick Home Offers® buys houses with tax liens in Sacramento County, California, including Sacramento, Elk Grove, Citrus Heights and Rancho Cordova. We can make a cash offer within 1 business day.
Good to know:
- Tax office: Sacramento County Tax Collector, 700 H Street, Room 1710, Sacramento.
- Phone to Tax Office: (916) 874-6622. The line has tax information 24 hours a day.
- Email: TaxSecured@saccounty.gov
- The county holds its tax sale on the last Monday in February, with a second sale in May or June.
- Sacramento County does not sell tax lien certificates. It sells the house itself.
- For tax sale questions, call the Tax-Defaulted Land Unit at (916) 874-6621.
Who buys houses with tax liens in Fresno County?
Quick Home Offers® buys houses with tax liens in Fresno County, California, including Fresno and Clovis. We pay both sides of escrow and title fees when you sell.
Good to know:
- Tax office: Fresno County Treasurer-Tax Collector, Hall of Records, Room 105, 2281 Tulare Street, Fresno.
- Phone to Tax Office: (559) 600-3482
- A five-year payment plan costs $135 to set up, plus at least 20% of what you owe and the current year’s taxes.
- On a Fresno County plan, your supplemental tax bills must be paid each year too.
- If June 30 falls on a weekend, taxes must be paid by the business day before.
Who buys houses with tax liens in San Luis Obispo County?
Quick Home Offers® buys houses with tax liens in San Luis Obispo County, California, including San Luis Obispo, Paso Robles and Atascadero. About half of our sales closed remotely, so you can sell from anywhere.
Good to know:
- Tax office: San Luis Obispo County Auditor-Controller-Treasurer-Tax Collector
- Phone to Tax Office: (805) 781-5831
- The county offers two payment plans for back taxes.
- The annual plan starts with 20% of what you owe and a one-time $73 fee.
- The monthly plan starts with at least $100 and a one-time $96 fee. A small fee is added each time you pay.
- If an annual plan defaults, the county figures interest at 18% a year as if no payments had been made.
We also buy in Solano County, the Bay Area and the rest of the Central Valley. Quick Home Offers® has closed 300+ transactions since 2013 across California. If your house has a tax lien, call Adam at (805) 870-5749.
Frequently Asked Questions
Can I sell my house if it has a tax lien?
Yes. The tax lien gets paid through escrow at closing. The escrow company pays the taxing authority directly from the sale proceeds, the lien is released, and the buyer receives clean title.
How do I find out if there is a tax lien on my property?
Contact your county recorder’s office, check the FTB’s MyFTB portal for state tax liens, or order a preliminary title report from a title company. A title report will show all recorded liens on your property.
How long before California can sell my property for unpaid property taxes?
Under California Revenue and Taxation Code §3691, the county can sell tax-defaulted property after five years of delinquency. A declared disaster can pause that clock.
Do tax liens expire in California?
FTB state tax liens expire 10 years from the date of recording unless extended. IRS federal tax liens generally expire 10 years from the date of assessment. Property tax liens do not expire on their own. They remain until the taxes are paid or the property is sold at a tax sale.
Can I sell a rental property with a tax lien and tenants still living in it?
Yes. The tax lien gets paid through escrow at closing, the same way it would on a vacant property. But selling a tenant-occupied property with a lien through a conventional sale can be difficult. Most traditional buyers do not want to inherit an existing lease, and their lender may have requirements around occupancy that complicate the transaction. Adding a tax lien on top of a lease transfer makes an already narrow buyer pool even smaller. This is where a cash buyer makes the most sense.
We buy occupied rental properties regularly and are comfortable with tenants in place. The tenants do not need to move out for the sale to close. We handle the lien through escrow and take the lease as-is. If you are a landlord with a tax lien and want to sell without the hassle of vacating the property first, call us at 805-870-5749.
Will a tax lien affect my credit?
FTB liens are public record and may appear on your credit report. The FTB does not notify credit bureaus directly, but the bureaus can pick up the information from county recorder records. IRS liens can also impact your credit.
What is the difference between a tax lien and a tax levy?
A lien is a legal claim — it secures the government’s interest in your property. A levy is when the government actually seizes property to satisfy the debt. A lien does not mean anyone is taking your home. A levy does.
Can Quick Home Offers® buy my house if it has a tax lien?
Yes. We regularly purchase properties with property tax liens, FTB liens, and IRS liens. About 1 in 4 of the properties Quick Home Offers® has taken on had a lien beyond the mortgage. The title search finds the liens, and in nearly every case the lien was paid through escrow and the seller did not have to come out of pocket for it. Call 805-870-5749 to discuss your situation. Here’s how our process works.
Dealing with tax liens and just want to sell as-is and be done?
Enter your info below for a free, no obligation, cash offer. We will tell you upfront if you will net more listing conventionally.
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About the Authors
Adam Justiniano is co-owner of Quick Home Offers® and works directly with sellers across California. He personally visits properties, meets with homeowners, and walks them through their options. Adam has been buying real estate since 2013 and has handled properties with property tax liens, FTB liens, IRS liens, judgment liens, and mechanic’s liens. About 1 in 4 of the properties the company has taken on had a lien beyond the mortgage. He grew up in Ventura County and still lives there today.
Josh Justiniano is co-owner of Quick Home Offers® and runs the company’s underwriting, financial analysis, and project management. He evaluates the numbers behind every offer the company makes, including calculating net proceeds for sellers dealing with lien payoffs through escrow. Josh worked at a legal firm in Thousand Oaks before entering real estate at 21, which gave him an eye for the documentation and title work that lien transactions require. He went to California State University of Northridge and studied Real Estate. He and Adam have closed over 300 transactions across California since 2013.
About Quick Home Offers®
Quick Home Offers® is a California cash home buying company founded in 2013 and based in Ventura County, California. The company purchases houses, condos, multifamily properties, and land statewide. Every offer is personally evaluated by Adam or Josh, not generated by an algorithm. If you are dealing with a tax lien and want to explore selling, call us at (805) 870-5749 for a no-pressure conversation.
We are not attorneys, and this is not legal advice — for legal guidance on tax liens, consult a licensed California tax attorney or real estate attorney.