Selling a House With Delinquent Property Taxes in Tennessee
Yes. Back taxes on a Tennessee house are paid out of the sale at closing. Tennessee property taxes are due in the fall and delinquent the next March, with interest and penalties often running 1.5% a month. Delinquent taxes go to a lawsuit in chancery court, and the property can be auctioned. Even then, you can usually redeem for a year after the court confirms the sale, less if the taxes are many years behind or the house is vacant, by paying the buyer back with 12% interest. Selling before the tax sale keeps your equity.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
Written for Tennessee owners and heirs who've fallen behind on property taxes, with specifics for Davidson and Shelby. It's general information, not legal advice; the county trustee and the clerk and master run the process.
From Missed Bill to Tax Sale
- 1Fall due date
Tax bills come out in the fall and are payable to the county trustee.
- 2March delinquency
Interest and penalty, often a combined 1.5% a month, start adding up.
- 3Delinquent tax lawsuit
Filed in chancery court, with notice by publication and certified mail.
- 4Tax sale
A public auction run by the clerk and master.
- 5Redemption
Starts when the court confirms the sale.
If you pay everything owed before the sale, the suit is dismissed.
How Long You Have to Redeem
- One yearIf the taxes were delinquent five years or less.
- 180 daysIf more than five but fewer than eight years.
- 90 daysIf eight years or more.
- 30 daysIf the house is found vacant and abandoned.
To redeem, you pay the purchase price, 12% interest on it, and costs, then file a motion with the court. The buyer can also ask to be repaid certain expenses, like insurance and upkeep. (Tenn. Code Ann. § 67-5-2701)
A Tennessee tax sale isn't the end, but the clock can be as short as 30 days for an empty house. Pay or sell before the sale whenever you can.
Want a Number to Compare Against?
Send me the balance and whether the county has filed suit yet. You'll get an as-is offer to hold up against the payoff, and my honest call on whether keeping the house is the wiser move.
Nashville, Memphis, Knoxville and Chattanooga
In Davidson County, the Clerk and Master runs delinquent tax sales, generally monthly from June through December. To redeem, you get the amount from the office and file a motion to redeem. (Davidson County Clerk & Master – Delinquent Tax Sales) In Memphis, city and Shelby County taxes have historically been billed separately, so check both. Knox and Hamilton counties run their own chancery tax sales. Wherever you are, call the county trustee for a payoff before the suit is filed.
Surplus From a Tax Sale
If the house sells for more than the taxes and costs, the excess is held for the owner and others with an interest, who have to file a claim with the court. Don't wait, and be cautious with finders who want a big cut.
Keep It or Sell It
Keep It
If you can pay or redeem and keep up, do it, and ask about tax relief or a tax freeze for older or disabled owners.
Sell It
When taxes plus repairs plus insurance are more than the house is worth to you, a sale settles the delinquency out of the proceeds.
When the house needs work or a tax sale is scheduled, an as-is sale can close before it. For the least hassle, sell as-is to a real estate investor. You won't have strangers walking through, a contractor to chase or a house to empty, and you get to name the closing date. There's no clean-out when Dennis Buys Houses buys your house. Take what you love, leave what you don't, and we'll handle the rest. If something personal or valuable turns up, we'll get it to you.
Selling During Redemption
You can still sell during redemption, paying the redemption amount at closing. The title company will need the court's figure, so start early.
An Inherited House With Back Taxes
Tax bills are easy to miss in the months after a death. Get authority lined up, then deal with the taxes before the suit gets to a sale. (See How to Sell a House in Probate in Tennessee and Selling an Inherited House in Tennessee.)
Back Taxes vs. Foreclosure
A tax lien has priority, so a tax sale can wipe out a mortgage. Servicers often pay delinquent taxes and add them to your loan, which can trigger a fast trustee's sale. (See Selling a House in Foreclosure in Tennessee.)
Common Mistakes
- Ignoring the certified letter about the tax suit.
- Assuming you have a year when the house is vacant.
- Letting taxes run more than five years and shrinking your window.
- Forgetting separate city taxes in Memphis.
- Not claiming surplus after a sale.
- Missing tax relief you qualify for.
Where I Fit, and Where I Don't
Tennessee owners usually call me when several years are behind, a tax suit or sale is scheduled, the house needs work, or it was inherited.
Dennis Buys Houses won't ask you to clear the place out first, either. Whatever you leave behind is ours to deal with.
If you live there and can pay it off and stay current, that usually beats selling, and I'll tell you so.
Either way, I'll tell you upfront whether I'm a good fit or not.
Frequently Asked Questions
No. The closing attorney pays the trustee, or the redemption amount, from your proceeds.
Generally in March after the fall due date.
Usually a year after the sale is confirmed, but as little as 180, 90 or 30 days depending on how long the taxes were delinquent and whether the house is vacant.
No. Remove what you want; with an as-is sale, Dennis Buys Houses handles what's left.
What the buyer paid, 12% a year on that amount, court costs, and certain upkeep expenses the buyer can document.
The owner and others with an interest can claim it through the court.
Your county trustee and clerk and master handle delinquent taxes. Key resources: Tenn. Code Ann. § 67-5-2701 (redemption) and Davidson County Clerk & Master – Delinquent Tax Sales.
Tennessee Selling Guides
- How to Sell a House in Probate in Tennessee
- Selling an Inherited House in Tennessee
- Selling a Vacant House in Tennessee
- Selling a House With Bad Tenants in Tennessee
- Selling a House in Foreclosure in Tennessee
Behind on Tennessee Property Taxes?
Give me the tax balance and the status of any suit. I'll come back with a firm as-is offer, or tell you to pay it off if that's plainly smarter.