Property taxes aren’t fun to think about — especially when money is tight — but ignoring them can lead to serious consequences in California. Many homeowners fall behind because of job loss, rising costs, medical bills, or simply not realizing how quickly penalties add up.
This guide breaks down exactly what happens if you stop paying property taxes in California, how long you have before losing the home, and the options you still have to protect your equity (including how homeowners we’ve worked with turned stressful tax problems around).
If you’re also dealing with title issues, liens, or inherited property questions, check out our blog: Handle Property Title & Legal Issues in California.
Understanding Property Taxes in California
California property taxes are due in two installments each year:
- 1st installment: Due November 1, late after December 10
- 2nd installment: Due February 1, late after April 10
Once they’re late, penalties start immediately — and they don’t stop.
Most counties charge:
- 10% penalty for each late installment
- Additional $10–$20 fee
- Interest that compounds until it’s paid
What Happens Immediately After You Miss a Property Tax Payment?
The county marks your payment as delinquent, and penalties start.
Case Example:
We once helped a homeowner from Palmdale named Rita. She missed her April property tax installment after losing her job. She assumed she could catch up in a few months, but penalties quickly snowballed to over $1,900. She reached out after realizing the tax bill was growing faster than she could pay it back.
After One Year of Nonpayment — “Tax-Defaulted” Status
If your taxes remain unpaid as of July 1, your property becomes tax-defaulted.
A tax-defaulted property:
- Begins accruing 1.5% interest per month (18% annually)
- Receives additional fees each year it’s unpaid
- May have a tax lien attached to the title
- Can block refinancing or selling until paid
Important:
You still own the home at this stage — but time starts working against you.
How Long Before You Lose the Property?
California gives homeowners 5 years to catch up on delinquent property taxes.
For older adults (over 55) or disabled homeowners living on the property, the redemption period may be extended to 8 years.
After the redemption period ends, the county has the legal right to sell your home in a public tax auction.
You can learn more about the legal sale process on the California tax auction process.
Year-by-Year Timeline of What Happens
Large: Year 1 — Penalties Begin
- 10% penalty
- Monthly interest
- Property becomes tax-defaulted on July 1
Large: Years 2–4 — Additional Fees & Interest
- 1.5% interest continues
- Redemption penalties added
- County may issue a Notice of Power to Sell
Large: Year 5 (or 8 for seniors/disabled) — Tax Auction
Your home may be listed for sale, often far below market value.
Real Example:
A homeowner in Inglewood, “Marcus,” inherited his parents’ home but wasn’t aware of the tax bill for two years. By the time he checked, he owed over $14,000 and was only 18 months away from auction. We helped him sell the property before the auction deadline so he could keep the $280,000 in equity rather than losing it to auction.
Can the County Take Your Home for Unpaid Property Taxes?
Yes — but they cannot take it immediately.
California law requires:
- A minimum 5-year redemption period
- A formal notice process
- A public auction
If the home sells at auction, you lose all equity, and the county keeps the proceeds.
This is why letting the debt reach auction stage is extremely risky.
Can You Sell a House With Unpaid Property Taxes?
Yes — absolutely.
In fact, this is one of the most common solutions for homeowners who are too far behind.
When you sell:
- The delinquent taxes are paid off at closing
- Penalties stop
- You walk away with the remaining equity
- No payment is required upfront
We’ve worked with many sellers who were shocked to learn that unpaid taxes didn’t block the sale.
Options If You’ve Fallen Behind on Property Taxes
1. Pay the Taxes in Full
Stops penalties immediately.
2. Enter a Five-Year Payment Plan
Counties often allow installment plans with a down payment.
Check options for your area on the property tax payment plans page.
3. Apply for a Tax Postponement Program
California offers a special program for seniors, blind, or disabled homeowners.
Learn more about eligibility and benefits on the tax postponement program for seniors page from the State Controller.
4. Refinance the Home
Possible if:
- You have strong equity
- Credit is decent
- No major title issues (you can learn more about these in our title issues guide)
5. Sell the House (Fastest & Most Certain Option)
A cash buyer can close quickly and use proceeds to pay off:
- Back taxes
- Liens
- Fees
- Penalties
If you’re close to the 5-year deadline, selling may protect your equity.
What About Tax Liens?
Unpaid property taxes create an automatic lien, but unlike other liens, counties rarely negotiate or reduce them.
A tax lien:
- Attaches to the property (not the person)
- Must be cleared before transferring ownership
- Can block mortgages, HELOCs, and refinancing
Signs You’re at Risk of Losing the Property
- You’re more than 2–3 years behind
- You’ve received a “Notice of Power to Sell”
- Your total owed amount increases every month
- You can’t catch up due to interest
- County tax collector keeps sending warnings
If any of these apply, you’re likely running out of time — and selling may protect your equity.
If You’re Facing Property Tax Problems, You’re Not Alone
We’ve helped many homeowners across Los Angeles County who felt overwhelmed or embarrassed about falling behind. Life happens — and property taxes sneak up fast.
At Mrs. Property Solutions, we can:
- Buy your home as-is
- Pay off delinquent taxes at closing
- Handle liens, title issues, or inherited property
- Close in as little as 7 days
You don’t need repairs, showings, or extra money upfront.
If you’d like an offer or want to talk through options, we’re here to help with honesty and transparency.