Selling a House With Delinquent Property Taxes in Nebraska
Yes. Back taxes on a Nebraska house are paid out of the sale at closing. Nebraska taxes are paid in two halves, and once they're delinquent they pick up 14% interest. If they're still unpaid, the county treasurer can sell a tax certificate on or after the first Monday in March, and the buyer earns interest while you hold the right to redeem, generally for three years. After that, the buyer can pursue a tax deed or foreclosure. Since the Tyler v. Hennepin decision, Nebraska's courts and legislature have been reshaping how surplus is handled.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
For Nebraska owners and heirs behind on property taxes, with notes on Douglas and Lancaster counties. General information, not legal advice. Your county treasurer runs the process.
From Unpaid Half to Tax Certificate
- 1Two halves
In Douglas, Lancaster and Sarpy counties, the first half is delinquent April 1 and the second August 1; in most other counties, May 1 and September 1.
- 214% interest
Delinquent taxes accrue interest from the delinquency date.
- 3Published list
The treasurer publishes the delinquent list for three weeks starting in early February.
- 4Tax sale
On or after the first Monday in March, a buyer pays the taxes and gets a certificate.
- 5Redemption
Generally three years before the buyer can seek a deed or foreclose.
Redeeming a Tax Certificate
You keep the house during redemption and can redeem by paying the certificate amount, interest and charges through the county treasurer. (Neb. Rev. Stat. § 77-1824) After three years, the buyer can apply for a tax deed or file to foreclose, depending on the property's value, and must start within nine months. You can still redeem until the tax deed application is received or, in a foreclosure, until the court confirms the sale. (Neb. Rev. Stat. § 77-1837)
A Nebraska tax certificate gives you years, but at 14% interest it gets expensive. The sooner you pay or sell, the more equity you keep.
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 set beside the redemption figure, and I'll tell you honestly if keeping the house is smarter.
Surplus After Tyler
After the U.S. Supreme Court's 2023 Tyler v. Hennepin County decision, the Nebraska Supreme Court held that a tax certificate holder who takes a house by tax deed can be liable to the former owner for the surplus equity. Nebraska has also shifted toward court foreclosures for tax certificates, where a court-supervised sale sets the price and equity above the lien goes to the owner. The rules depend on when the certificate was issued, so talk to an attorney if a deed has been issued or applied for.
Call the County Treasurer
Ask what's owed, whether a certificate was sold and to whom, the redemption amount, and when the three years run out. Douglas County and Lancaster County treasurers can give exact figures. Ask about homestead exemptions for older or disabled owners, too.
Keep It or Sell It
Keep It
If you can redeem and keep up with both halves going forward, do it.
Sell It
If the taxes, repairs and insurance are more than you can carry, a sale pays the redemption at closing and keeps your equity.
When the house needs work or the three years are almost up, an as-is sale can close in time. An as-is sale to a real estate investor keeps it simple: nobody tours the house, nothing gets fixed, nothing has to be hauled out, and you pick the day it closes. With Dennis Buys Houses, you won't be cleaning out the house. Keep what you want, leave the rest, and we'll take care of everything else. If something personal or valuable turns up, it comes back to you.
Selling During Redemption
You still own the house. The title company will get a redemption figure from the treasurer and pay it at closing.
An Inherited House With Back Taxes
Taxes often slip after a death, and the county inheritance tax adds another bill. Get authority in place, then deal with both. (See How to Sell a House in Probate in Nebraska and Selling an Inherited House in Nebraska.)
Back Taxes vs. Foreclosure
A tax lien has priority, so a tax deed can wipe out a mortgage. That's why servicers often pay delinquent taxes and add them to your loan, which can trigger a default and a much faster trust deed foreclosure. (See Selling a House in Foreclosure in Nebraska.)
Common Mistakes
- Missing the earlier delinquency dates in Douglas, Lancaster and Sarpy.
- Letting 14% interest run for three years.
- Ignoring a tax deed or foreclosure notice.
- Missing a homestead exemption you qualify for.
- Not asking about surplus if a deed was issued.
- Assuming the mortgage servicer won't care.
Where I Fit, and Where I Don't
Nebraska owners usually call me when several halves are behind, a certificate holder is getting close to a deed, the house needs work, or it was inherited.
And Dennis Buys Houses doesn't need it cleared out. Leave what you want to leave; that part's on us.
If you live there and can redeem and stay current, that usually beats selling. I'll tell you if that's your situation.
Either way, I'll be upfront with you about whether I'm the right fit.
Frequently Asked Questions
Yes. The taxes or the redemption amount are paid from the sale at closing.
April 1 and August 1 in Douglas, Lancaster and Sarpy counties; May 1 and September 1 in most others.
Generally three years, and you can still redeem until a tax deed application is received or a foreclosure sale is confirmed.
No. Take what matters; with an as-is sale, Dennis Buys Houses handles what's left.
14% a year.
Recent court decisions and law changes protect owners' surplus equity. Talk to an attorney promptly.
Your county treasurer handles redemption. Key statutes: Neb. Rev. Stat. § 77-1824 (redemption) and Neb. Rev. Stat. § 77-1837 (tax deeds).
Nebraska Selling Guides
- How to Sell a House in Probate in Nebraska
- Selling an Inherited House in Nebraska
- Selling a Vacant House in Nebraska
- Selling a House With Bad Tenants in Nebraska
- Selling a House in Foreclosure in Nebraska
Behind on Nebraska Property Taxes?
Tell me what's owed and whether a certificate was sold. I'll send a firm as-is figure, or tell you to redeem if that's clearly better.