Selling a House With Delinquent Property Taxes in Indiana
Yes. Back taxes on an Indiana house are paid out of the sale at closing. Taxes are due May 10 and November 10, with a 5% or 10% penalty when you're late, and once a prior year's spring installment goes unpaid, the house can be listed for the county's annual tax sale. The buyer at that sale gets a certificate, not your house. You usually have one year to redeem, and the cost rises after six months. If the redemption period runs out, the buyer can petition for a tax deed, so a sale before that point protects your equity.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
For Indiana owners and heirs behind on property taxes, with notes on St. Joseph County. General information, not legal advice. Your county treasurer and auditor run the process.
From Late Payment to Tax Sale
- 1Two due dates
May 10 and November 10.
- 2Penalties
5% if paid within 30 days and there are no other back taxes; 10% after that.
- 3Certified for sale
A prior year's unpaid spring installment can put the property on the list.
- 4Notice and judgment
Mailed notice at least 21 days ahead, three weeks of publication, and a court judgment.
- 5Tax sale
The high bidder receives a certificate of sale, a lien, not ownership.
St. Joseph County's Sale
St. Joseph County held its 2026 tax sale online on September 1, with more than 1,300 parcels listed, most of them single-family homes. Properties that don't sell can be offered later through commissioners' certificates, and the county and South Bend have been working on a regional land bank to take hard-to-sell vacant houses. Contact the county treasurer for current lists and payoffs. (St. Joseph County government)
Redeeming After the Sale
For most properties, you have one year from the sale to redeem. If the county holds the certificate, as with commissioners' sales, the period is 120 days, though an owner can sometimes negotiate an extension. (IC 6-1.1-25-4) The cost is 110% of the minimum bid within six months, 115% after that, plus 5% a year on any amount bid above the minimum, plus taxes and costs the buyer paid. (IC 6-1.1-25-2)
An Indiana tax sale gives you about a year, sometimes only 120 days. Don't spend it waiting; the cost and the risk only go up.
Want a Number to Compare Against?
Let me know what's owed and whether a certificate was sold. I'll give you an as-is price to compare with redeeming, and I'll tell you if keeping the house is the smarter play.
Call the Treasurer and Auditor
Find out what's owed, whether the house is certified for sale, whether a certificate has already been sold, and the exact redemption figure. While you're at it, make sure your homestead deduction is still in place; losing it can make the bill jump.
The Tax Sale Surplus Fund
If a tax sale brings more than the taxes and costs, the extra goes into a surplus fund for the owner of record. Indiana limits what someone can charge to recover it for you to 10% of the amount, and it requires a signed written agreement. (IC 6-1.1-24-7.5) You can claim it yourself through the county auditor.
Keep It or Sell It
Keep It
If you can redeem or catch up and stay current, that's the move, and file for every deduction you're due.
Sell It
If the taxes, repairs and insurance are more than you can carry, a sale pays the taxes or redemption from the proceeds.
When the house needs work or the redemption deadline is close, an as-is sale can close before it. Selling as-is to a real estate investor is the low-effort option: nobody tours the house, you don't line up repairs, you don't sort and haul a thing, and the closing date is yours to pick. When Dennis Buys Houses says no clean-out, we mean it. Grab what's important to you and walk away from the rest. We'll deal with everything left, and anything personal or valuable we find comes back to you.
Selling During the Redemption Period
You still own the house until a tax deed is issued. The title company will pay the redemption amount at closing, so get the figure from the auditor early.
An Inherited House With Back Taxes
Taxes often fall behind after a death, and the homestead deduction disappears. Get someone with authority in place, then deal with the taxes before the house is certified for sale. (See How to Sell a House in Probate in Indiana and Selling an Inherited House in Indiana.)
Back Taxes vs. Foreclosure
A tax sale and a mortgage foreclosure are separate. Lenders often pay the taxes to protect their position and bill you through escrow, and that can trigger a default. If both are behind, the foreclosure case usually moves first. (See Selling a House in Foreclosure in Indiana.)
Tax Mistakes to Avoid
- Missing the spring installment and assuming you have years.
- Ignoring the redemption notice from the certificate buyer.
- Waiting past six months, when the cost goes up.
- Forgetting that commissioners' certificates may carry only 120 days.
- Losing the homestead deduction without noticing.
- Paying more than 10% to someone to recover your surplus.
Where I Fit, and Where I Don't
I help most when the taxes are several installments behind, a certificate has been sold, the house needs work, or it's inherited or empty.
You also don't have to clear the house for Dennis Buys Houses. Leave behind what you don't want and it's on us.
If you live there and can catch up and stay current, that's usually better than selling, and I'll tell you so.
One way or the other, I'll be upfront about whether I'm a good fit.
Frequently Asked Questions
Yes. The taxes, penalties or redemption amount are paid from the proceeds at closing.
May 10 and November 10.
Usually one year. For certificates held by the county, it's 120 days, sometimes extendable.
No. With an as-is sale, take what you want and leave the rest. Dennis Buys Houses handles what's left.
110% of the minimum bid within six months, 115% after, plus 5% a year on any overbid and the buyer's taxes and costs.
The extra goes to the tax sale surplus fund for the owner of record. You can claim it yourself.
Your county treasurer and auditor handle payoffs, sales and surplus. Key statutes: IC 6-1.1-25-4 (redemption period), IC 6-1.1-25-2 (redemption cost) and IC 6-1.1-24-7.5 (surplus recovery fees).
Indiana Selling Guides
- How to Sell a House in Probate in Indiana
- Selling an Inherited House in Indiana
- Selling a Vacant House in Indiana
- Selling a House With Bad Tenants in Indiana
- Selling a House in Foreclosure in Indiana
Behind on Indiana Property Taxes?
Tell me what's owed and where it stands. You'll get a straight as-is price, and if redeeming or catching up is the better answer, I'll say so.