Selling a House With Delinquent Property Taxes in Minnesota
Yes. Back taxes on a Minnesota house are paid out of the sale at closing. Minnesota doesn't sell your taxes to an investor. Unpaid taxes become delinquent in January, the county gets a tax judgment, and the state takes an interest in the property, subject to your right to redeem, usually for three years. If the redemption period runs out, the property forfeits to the state. After the Tyler v. Hennepin County case, Minnesota changed the law in 2024, so forfeited property is auctioned and former owners can claim the surplus.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
For Minnesota owners and heirs behind on property taxes, with notes on Hennepin, Ramsey and Olmsted counties. General information, not legal advice. Your county auditor-treasurer runs the process.
From Missed Payment to Forfeiture
- 1Two due dates
May 15 and October 15 for most homes.
- 2Delinquent in January
Unpaid taxes and penalties become delinquent the first business day of the next year.
- 3Tax judgment
The county files the delinquent list with district court, and a judgment is entered.
- 4Bid in for the state
In May, the state takes an interest in the property, subject to redemption.
- 5Redemption, then forfeiture
Usually three years, then forfeiture after a notice of expiration.
The Redemption Period
Most homes get three years from the tax judgment sale to redeem by paying the delinquent taxes, penalties, interest and costs. Some properties get one year, and abandoned or vacant property can be cut to five weeks. Forfeiture happens when the period ends or 60 days after the notice of expiration, whichever is later. (Minn. Stat. § 281.23) Many counties also let you confess judgment and pay over several years to stop the clock.
Minnesota gives you years, not months, but a vacant or abandoned house can lose that cushion. Don't let an empty house sit with unpaid taxes.
Want a Number to Compare Against?
Send me the tax balance and when your redemption period ends. I'll put an as-is offer next to the cost of redeeming, and if keeping the house is smarter, I'll say so.
Why Minnesota Changed the Law
In 2023, the U.S. Supreme Court ruled that Hennepin County couldn't keep the surplus after it took and sold a Minneapolis condo over roughly $15,000 in back taxes and fees. In response, Minnesota rewrote its forfeiture sales law for forfeitures after December 31, 2023. The county now offers forfeited property at public auction, starting at estimated market value, and mails former owners and other interested parties a claim form for any surplus. (Minn. Stat. § 282.005) The notice of expiration now tells owners they may be entitled to excess proceeds.
Call the County First
Ask the county auditor-treasurer what's owed, when your redemption period ends, whether a confession of judgment plan is available, and whether you qualify for property tax relief. In Hennepin, Ramsey and Olmsted counties, the auditor-treasurer's office can give you an exact redemption figure.
Keep It or Sell It
Keep It
If you can redeem or get on a payment plan and keep up, that's usually the right call.
Sell It
If the taxes, repairs and insurance are more than you can carry, a sale pays the delinquent taxes at closing and keeps your equity in your pocket instead of in a forfeiture auction.
When the house needs work or the redemption period is nearly over, an as-is sale can close before forfeiture. The lightest lift is usually an as-is sale to a real estate investor. Nobody walks through, you don't hire a single contractor, nothing needs to be packed up or carted off, and you decide the closing date. Sell to Dennis Buys Houses and the clean-out is off your list. Take the things that matter, leave the rest exactly where it is, and we deal with it. Anything we find that looks personal or valuable, we get back to you.
Selling During Redemption
You still own the house during the redemption period. The title company will pay the delinquent taxes and costs at closing; ask the county for the exact amount.
After Forfeiture
Before the county sells forfeited property, former owners and heirs can sometimes apply to repurchase it. After the sale, watch for the surplus claim form, and fill it out on time. Forfeiture ends your ownership; a sale before then almost always leaves you with more.
An Inherited House With Back Taxes
Taxes often slip after a death, especially if no one's living there. Get authority in place quickly, and keep the house from being classified as abandoned. (See How to Sell a House in Probate in Minnesota and Selling an Inherited House in Minnesota.)
Back Taxes vs. Foreclosure
These are separate tracks. Many lenders pay the taxes and add them to escrow, which can push you into a mortgage default. (See Selling a House in Foreclosure in Minnesota.)
Tax Mistakes to Avoid
- Assuming you have three years when the house is vacant.
- Ignoring the notice of expiration.
- Not asking about confession of judgment.
- Missing property tax relief you qualify for.
- Throwing away the surplus claim form after forfeiture.
- Letting forfeiture happen when a sale would keep your equity.
Where I Fit, and Where I Don't
Minnesota owners usually reach me when several years of taxes have stacked up, the notice of expiration has arrived, the house needs work, or it came through an estate.
On top of that, Dennis Buys Houses doesn't need the house emptied. What you leave, we handle.
If it's your home and redeeming or a payment plan is realistic, that usually beats selling. I'll tell you if that's your situation.
Whichever way it goes, you'll get an upfront answer from me about whether I'm a fit.
Frequently Asked Questions
Yes. The delinquent taxes, penalties and costs are paid from the proceeds at closing.
Usually three years from the tax judgment sale; one year for some properties and five weeks for abandoned ones.
No. The state takes the interest, and the property forfeits to the state if it isn't redeemed.
No. Remove what matters to you; with an as-is sale, Dennis Buys Houses handles what's left.
Since 2024, forfeited property is auctioned and former owners can claim the surplus through a claim form.
Often, through a confession of judgment, if the house isn't vacant or abandoned.
Your county auditor-treasurer handles redemption and forfeiture. Key statutes: Minn. Stat. § 281.23 (notice of expiration) and Minn. Stat. § 282.005 (forfeited property sales and surplus).
Minnesota Selling Guides
- How to Sell a House in Probate in Minnesota
- Selling an Inherited House in Minnesota
- Selling a Vacant House in Minnesota
- Selling a House With Bad Tenants in Minnesota
- Selling a House in Foreclosure in Minnesota
Behind on Minnesota Property Taxes?
Share the balance and the redemption date. I'll give you a firm as-is figure, or tell you to redeem if that's clearly the better answer.