Selling a House With Delinquent Property Taxes in Maryland
Yes. Back taxes on a Maryland house are paid from the proceeds at closing. Maryland property taxes are overdue on October 1 and pick up 1% interest and penalties each month. If they stay unpaid, the county sells a lien on the house at its annual tax sale; the buyer doesn't get your house. You can redeem until a court forecloses your right of redemption, which the buyer can't even file for until six months after the sale. Paying early, or selling, keeps the buyer's fees and legal costs off your bill.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
For Maryland owners and heirs behind on property taxes, with notes on Anne Arundel County. General information, not legal advice. Your county finance office and the State Tax Sale Ombudsman can help.
How Unpaid Taxes Reach a Tax Sale
- 1October 1
Unpaid property taxes are overdue and begin accruing 1% a month in interest and penalties.
- 2Notice
The county mails a notice at least 30 days before advertising.
- 3Advertising
Once a week for four weeks in local newspapers.
- 4Tax sale
A bidder buys a lien and receives a certificate. You still own the house.
- 5Foreclosure of redemption
The buyer can file after six months and must file within two years, or the certificate is void.
Anne Arundel County's Sale
Anne Arundel County held its 2026 tax sale online, with bidding starting June 3. Owner-occupied homes and heirs of a deceased owner generally aren't included unless at least $1,000 is owed; for other property, the threshold is $750. If you redeem within seven months of the sale for an owner-occupied home (four months for other property), you avoid reimbursing the buyer's expenses. (Anne Arundel County tax sale process)
Redeeming a Maryland Tax Sale
You can redeem until a court enters a judgment foreclosing your right of redemption. To redeem, you pay the amount paid at the sale, plus interest at the rate on the certificate, penalties and later taxes. After the reimbursement window, you also owe the buyer's allowed expenses and attorney's fees. (Maryland Tax Sale FAQs and State Tax Sale Ombudsman)
A Maryland tax sale buys you time, not safety. Redeem early, before the buyer's legal fees attach, or sell before the court case moves forward.
Want a Number to Compare Against?
Let me know the balance and whether the county already sold a lien. You'll get an as-is figure to hold up against the redemption cost, and my honest take on whether hanging on is wiser.
Call the County Before the Sale
Ask what's owed, whether the house is on the sale list, and what it would take to get it removed. Ask about the Homestead Tax Credit and the Homeowners' Property Tax Credit; missing credits are a common reason bills get out of hand. The State Tax Sale Ombudsman's office can explain your county's rules.
High Bids and Surplus
Many Maryland counties collect a high-bid premium when bids run above the lien, and the rules for who gets that money vary by county and have changed in recent years. If your house sold at tax sale and went to a court foreclosure, ask an attorney or the Ombudsman what you may be owed.
Keep It or Sell It
Hold On to It
When the redemption amount is manageable and future bills are too, pay it, and confirm every credit you qualify for shows on the bill.
Let It Go
When taxes plus repairs plus insurance are more than the house is worth to you, a sale settles the lien from the proceeds.
When the house needs work or the foreclosure of redemption has been filed, an as-is sale can close quickly. Going as-is with a real estate investor keeps things simple: no parade of buyers through the house, no contractors, no weekend spent hauling out furniture, and the closing happens on your timeline. There's no clean-out when you sell to Dennis Buys Houses. Keep what you want, leave what you don't, and we handle the rest. If something personal or valuable turns up, we make sure it gets back to you.
Selling During Redemption
Title and possession stay with you until the circuit court rules on redemption. Your settlement company will request the redemption figure from the county collector and pay it at closing.
An Inherited House With Back Taxes
Tax bills are often the first thing missed after someone dies. Anne Arundel extends its $1,000 owner-occupied threshold to a deceased owner's heirs, which buys a little room, but get a personal representative appointed and the taxes handled quickly. (See How to Sell a House in Probate in Maryland and Selling an Inherited House in Maryland.)
Back Taxes vs. Foreclosure
Maryland treats a tax lien foreclosure and a mortgage foreclosure as different lawsuits. Many servicers pay overdue taxes themselves and bill your escrow, and the jump in the payment is what pushes some owners into default. (See Selling a House in Foreclosure in Maryland.)
Tax-Sale Mistakes
- Assuming you lost the house at the tax sale.
- Waiting past the reimbursement window, when fees attach.
- Ignoring the court papers to foreclose redemption.
- Missing the Homestead or Homeowners' tax credits.
- Not asking about a high-bid premium or surplus.
- Paying a stranger for help the Ombudsman gives free.
Where I Fit, and Where I Don't
Sellers call me when the arrears span several years, a certificate holder has filed in circuit court, or the house came through an estate and nobody's living there.
Dennis Buys Houses also won't ask you to clear the place out. Whatever stays behind becomes our job.
If it's your home and the redemption amount is within reach, paying it and staying current usually beats selling. I'll tell you if that's you.
Either way, I'll give you a straight, upfront answer on whether I'm a good fit.
Frequently Asked Questions
No. The settlement agent pays the county, or the certificate holder's redemption figure, out of your proceeds.
October 1, with 1% a month in interest and penalties after that.
No. They buy a lien. You can redeem until a court forecloses your right of redemption.
No. Take the things that matter; in an as-is sale, Dennis Buys Houses handles what's left.
Not until six months after the sale (nine in Baltimore City), and the certificate is void if they don't file within two years.
The State Tax Sale Ombudsman's office explains county rules for free.
Start with Maryland Tax Sale FAQs and State Tax Sale Ombudsman and Anne Arundel County tax sale process.
Maryland Selling Guides
- How to Sell a House in Probate in Maryland
- Selling an Inherited House in Maryland
- Selling a Vacant House in Maryland
- Selling a House With Bad Tenants in Maryland
- Selling a House in Foreclosure in Maryland
Behind on Maryland Property Taxes?
Send me the tax balance and the status of any lien. I'll come back with a firm as-is offer, or tell you to redeem if that's the smarter play.