California's Property Tax Delinquency Timeline
California property taxes are due in two installments. If you fall behind, here's how the timeline works:
- After 1 year delinquent: The tax collector sells a "tax lien" on the property
- After 5 years delinquent: The property can be sold at a tax defaulted property auction
The good news: California gives homeowners 5 years to redeem their property — significantly longer than most states. But interest and penalties accumulate at 1.5% per month during that time, which adds up fast.
What Back Taxes Do to a Home Sale
Property taxes are a lien on the property — they attach to the title, not just to you personally. When you sell, all outstanding taxes, penalties, and interest must be paid before the buyer can receive clear title. The title company handles this at closing, paying the tax authority directly from your sale proceeds.
This means you can absolutely sell a property with back taxes — the taxes just come out of escrow at closing.
Can a Cash Buyer Help Even With Significant Back Taxes?
Yes — with an important caveat. The offer they make will factor in the outstanding tax liability. If you owe $35,000 in back taxes on a property worth $200,000, a buyer will calculate their maximum offer with that in mind. But a sale that nets you equity after paying the tax debt is far better than letting the property go to a tax auction.
Don't let back taxes paralyze you. Every month that passes adds more penalties. Understanding your equity position and getting a cash offer costs you nothing — and often reveals you have more options than you thought.
The Tax Deed Auction Risk
If you allow a property to reach the tax auction stage, you lose the property entirely — with no proceeds. Act before that point. Even if your equity is thin, a quick sale is almost always better than a tax auction outcome.