Selling a House With Delinquent Property Taxes in Wisconsin
Yes. Back taxes on a Wisconsin house come out of the sale proceeds at closing. Unpaid Wisconsin taxes run 1% interest a month, and many counties add a 0.5% monthly penalty. On September 1 the county takes a tax certificate on the delinquent parcel, and two years later it can start an in rem foreclosure in circuit court. You can still redeem after that case is filed, but only by paying everything, and once the judgment is entered the county owns the house. A 2024 law now requires counties to notify former owners about any excess proceeds and give homeowners a chance to buy the house back.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
For Wisconsin owners and heirs behind on property taxes, with notes on Milwaukee, Dane, Brown and Kenosha counties. General information, not legal advice. Your county or city treasurer runs the process.
From Missed Payment to County Deed
- 1January 31
The full bill or the first installment is due; later installments usually run through July 31.
- 2Interest and penalty
1% a month, plus up to 0.5% a month where the county adds a penalty. (Wis. Stat. § 74.47)
- 3September 1
The county issues a tax certificate, and owners of record are notified.
- 4Two years later
The county can file an in rem foreclosure. (Wis. Stat. § 75.521)
- 5Judgment
After a redemption period of at least eight weeks from first publication, the court gives the county title.
Wisconsin gives you more than two years before an in rem case starts, but once it's filed, only full payment takes the house off the list.
Redeeming Before Judgment
Once the county files, owners and lienholders can redeem by paying the delinquent taxes, interest, penalties and charges for the certificate year. Counties generally won't set up a formal payment plan at that stage, so the full amount has to come from somewhere, often a sale.
Want a Number to Compare Against?
Tell me the balance and whether an in rem case has been filed. You'll get an as-is offer next to your payoff, and if hanging on to the house makes more sense, I'll tell you that.
Excess Proceeds and Buying It Back
After the U.S. Supreme Court ruled that counties can't keep a former owner's equity, Wisconsin passed 2023 Act 207. Effective March 2024, counties must notify former owners when they may be owed excess proceeds from a later sale, and the former owner generally has a year to claim them. Counties must also let the former owner of an owner-occupied single-family home, or their heirs, buy it back by paying the county's costs, taxes and liens. (2023 Wisconsin Act 207 summary)
Milwaukee, Dane, Brown and Kenosha
In the City of Milwaukee, the city treasurer, not the county, collects delinquent taxes and brings its own in rem foreclosures. Dane, Brown and Kenosha counties run the process through the county treasurer. Wherever the house is, call the treasurer for an exact payoff and ask whether an in rem case has been filed.
Keep It or Sell It
Keep It
If you can pay down the balance before a case is filed, keep paying as often as you can, and make sure the lottery and gaming credit is on the bill if it's your home.
Sell It
If the taxes, interest, repairs and insurance are more than you can manage, a sale clears them at closing.
When the house needs work or an in rem case is already filed, an as-is sale can close before judgment. Or skip the to-do list and sell it as-is to a real estate investor: no showings, no repair requests after the inspection, no dragging furniture down basement stairs in January, and a closing date you choose. With Dennis Buys Houses, you don't have to empty the place. Keep what you want and walk away from the rest. Anything personal or valuable we come across gets back to you.
An Inherited House With Back Taxes
Notices often keep going to the person who died. Get someone with authority in place fast, then deal with the taxes before the county files. (See How to Sell a House in Probate in Wisconsin and Selling an Inherited House in Wisconsin.)
Back Taxes and the Mortgage
A lender usually pays delinquent taxes to protect its lien and adds them to your escrow. If the higher payment pushes you behind, that becomes a court foreclosure. (See Selling a House in Foreclosure in Wisconsin.)
Common Mistakes
- Treating the tax certificate as a warning you can ignore.
- Throwing away the in rem notice.
- Expecting a payment plan after the case is filed.
- Not claiming excess proceeds within a year.
- Letting the lottery and gaming credit drop off.
- Paying a stranger to recover money the county owes you.
Where I Fit, and Where I Don't
Wisconsin owners usually reach me when two or more years of taxes have piled up, an in rem notice has arrived, the house needs repairs, or it came to them through an estate.
You won't need to clear the house out for Dennis Buys Houses, either. Leave whatever you don't want.
If you can catch up on the taxes and keep the house, that usually beats selling, and I'll tell you.
No matter which way it goes, you'll hear from me early whether I'm the right fit.
Frequently Asked Questions
Yes. The taxes, interest and penalties are paid from the sale at closing.
The county can file an in rem foreclosure two years after the September 1 tax certificate.
Yes, until judgment, by paying the full amount for the certificate year.
No. Take what matters; with an as-is sale, Dennis Buys Houses handles the rest.
Under 2023 Act 207, former owners must be notified of any excess proceeds and generally have a year to claim them.
The City of Milwaukee treasurer collects and forecloses on delinquent city property.
Your county or city treasurer has the payoff. Key law: Wis. Stat. § 75.521 (in rem foreclosure), Wis. Stat. § 74.47 (interest and penalty) and 2023 Wisconsin Act 207 summary.
Wisconsin Selling Guides
- How to Sell a House in Probate in Wisconsin
- Selling an Inherited House in Wisconsin
- Selling a Vacant House in Wisconsin
- Selling a House With Bad Tenants in Wisconsin
- Selling a House in Foreclosure in Wisconsin
Behind on Wisconsin Property Taxes?
Send me the balance and whether the county has filed. I'll reply with a firm as-is offer, or tell you how to catch up if keeping the house is the smarter move.