Esquire Asset Recovery, LLC
Esquire Asset Recovery, LLC
Illinois Tax Lien and Tax Deed
What Happens If I Don't Pay Property Taxes in Illinois?
| Judicial | Non Judicial | Comment | Process Period | Publish Sale | Redemption Period | Sale/NTS |
|---|---|---|---|---|---|---|
| Judicial only | 135 days | N/A | None | Court |
What happens if you don't pay your Illinois property tax? You might eventually lose your home after a tax sale.
Legal update: In June 2025, Illinois lawmakers declined to consider proposed reforms for property tax sales and foreclosures in the state, saying they'll revisit the issue later this year. Illinois is the only remaining state where homeowners can lose not only their homes but also all of the equity in them if their homes are foreclosed after falling too far behind on paying their property taxes.
Illinois state law is out of step with the U.S. Supreme Court's decision in Tyler v. Hennepin County, 598 U.S. 631 (2023). In that case, the Court held that surplus proceeds from tax foreclosure sales must go to the foreclosed owner, who is entitled to just compensation under the Fifth and Fourteenth Amendments. The Court reasoned that retaining more than what is owed constitutes a governmental taking without just compensation.
All states have laws that allow the local government to sell a home through a tax sale process to collect delinquent taxes. In Illinois, the main types of tax sales to collect delinquent property taxes are:
Annual sales. If property taxes for the immediately preceding tax year are delinquent on a parcel, they're offered for sale at the annual tax sale.
Scavenger sales. Another kind of tax sale—a scavenger sale—is for properties that have delinquent taxes for three or more years, which weren't purchased at an annual tax sale. (35 Ill. Comp. Stat. § 200/21-145 (2024).)
Forfeiture sales. Forfeiture sales are when no one bids at the sale, so the lien for taxes goes to the state, and then someone buys the forfeited lien from the county.
This article focuses on procedures related to the annual tax sale.
How Are Property Taxes Assessed?
People who own real property have to pay property taxes. The government uses the money that these taxes generate to pay for schools, public services, libraries, roads, parks, and the like. Typically, the tax amount is based on a property's assessed value.
Will My Mortgage Lender Pay the Property Taxes?
If you have a mortgage on your home, the loan servicer might collect money from you as part of the monthly mortgage payment to later pay the property taxes. The servicer pays the taxes on the homeowner's behalf through an escrow account. But if the taxes aren't collected and paid through this kind of account, the homeowner must pay them directly.
How Does a Tax Lien Work?
When homeowners don't pay their property taxes, the overdue amount becomes a lien on the property. A lien is a claim against your home to ensure you'll pay the debt; it effectively makes the property act as collateral for the debt.
Again, all states, including Illinois, have laws allowing the local government to sell a home through a tax sale process to collect delinquent taxes.
How Does Illinois Handle Property Tax Non-Payment?
When an Illinois homeowner doesn't pay the property taxes, the overdue amount becomes a lien on the home. The lien exists from and including the first day of January in the year in which the taxes are levied until the taxes are paid or until the property is sold at a tax sale. (35 Ill. Comp. Stat. § 200/21-75 (2024).)
How Tax Sales in Illinois Work
When you don't pay your property taxes in Illinois, the county collector can apply to the court for a judgment against the property for the taxes and costs, as well as an order of sale. If you don't get caught up on what you owe, the court will issue a judgment, and then the county collector will hold a sale to sell the delinquent tax debt. (35 Ill. Comp. Stat. § 200/21-190 (2024).)
But the purchaser at the sale doesn't buy the title to the home. Instead, the buyer gets a certificate of purchase, which represents a lien on the property. (35 Ill. Comp. Stat. § 200/21-250 (2024).)
Notice Before the Judgment and Sale
No less than 15 days before applying to the court for a judgment and order of sale, the county collector must mail you a notice about the application. (35 Ill. Comp. Stat. § 200/21-135 (2024).) The collector must also publish notice of the application in a newspaper before applying for the judgment. (35 Ill. Comp. Stat. § 200/21-110, § 200/21-115 (2024).)
Look Out for Legal Changes
In this article, you'll find details on property tax sale laws in Illinois, with citations to statutes so you can learn more. Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consider consulting an attorney if you're facing a tax sale.
Stop the Sale By Getting Caught Up
At any time on or before the business day immediately before the sale, you can pay the taxes and costs due, which will stop the sale. If you live in a county with 3,000,000 or more residents, you'll have to pay the taxes, special assessments, interest, and costs due. (35 Ill. Comp. Stat. § 200/21-165 (2024).)
How the Right to Redeem Usually Works
Many states give delinquent taxpayers the chance to pay off the amounts owed and keep the home. This process is called "redeeming" the property.
In many states, the homeowner can redeem the home after a tax sale by paying the buyer from the tax sale the amount paid (or by paying the taxes owed), plus interest, within a limited amount of time. Exactly how long the redemption period lasts varies from state to state, but usually, the homeowner gets at least a year from the sale to redeem the property.
In other states, though, the redemption period happens before the sale.
How Long Is the Redemption Period After an Illinois Tax Sale?
In Illinois, the redemption period is 2.5 years after the sale. (35 Ill. Comp. Stat. § 200/21-350 (2024).)
Reduced Redemption Period for Some Properties
However, if on the date of sale, the property is vacant non-farm property or property containing an improvement consisting of a structure or structures with seven or more residential units or that is commercial or industrial property, it may be redeemed at any time before the expiration of one year from the date of sale. (35 Ill. Comp. Stat. § 200/21-350 (2024).)
Extended Redemption Period
The purchaser from the tax sale can choose to extend the redemption period up to three years after the sale. (35 Ill. Comp. Stat. § 200/21-385 (2024).)
If the period of redemption is extended, you must redeem on or before the extended redemption date. (35 Ill. Comp. Stat. § 200/21-350 (2024).)
How Much Will It Cost to Redeem My Home in Illinois?
To redeem the home, you'll have to pay various amounts, including:
the certificate amount (including all taxes, special assessments, interest, penalties, costs, and applicable fees)
an accrued penalty that's based on the date you redeem (the penalty increases every six months, which means the longer you wait to redeem, the more you'll have to pay)
the total of all subsequent taxes, special assessments, accrued interest on those taxes and special assessments, and costs that the purchaser paid, plus a penalty, and
fees and costs that the purchaser paid in connection with filing a petition for a tax deed with the court. (35 Ill. Comp. Stat. § 200/21-355 (2024).)
What If the Property Doesn't Sell at the Sale?
If the property doesn't sell at the public sale, it might be forfeited to the state. When a property has been forfeited for delinquent taxes, a person who wants to purchase the property can make an application to the county clerk.
The county clerk must then promptly send notice by registered or certified mail, return receipt requested, to the party in whose name the general taxes were last assessed or paid. The notice will say that an application has been made to purchase the property for forfeited taxes and that the property will be sold unless redeemed within 30 days of the mailing of the notice.
So, for 30 days after the mailing, the property may be redeemed. (35 Ill. Comp. Stat. § 200/21-405 (2024).)
What Happens If You Don't Redeem the Home
If you don't redeem your Illinois home during your allotted redemption period, the purchaser can get a deed (title) to the property. The purchaser files a petition with the circuit court asking that the court direct the county clerk to issue a tax deed if the property isn't redeemed from the sale. (35 Ill. Comp. Stat. § 200/22-30 (2024).)
The circuit court will then enter a judgment ordering a tax deed in favor of the purchaser so long as all legal requirements for obtaining a deed are met, including:
preparing a notice of sale, which includes information about your right to redeem, within four months and 15 days after the sale (for the county clerk to mail to you) (35 Ill. Comp. Stat. § 200/22-5 (2024)), and
serving you a notice containing the redemption period expiration date (and publishing the notice in a newspaper) at least three months—but not more than six months—before the expiration date. (35 Ill. Comp. Stat. § 200/22-10, § 200/22-15 (2024).)
What Options Do I Have If I Can't Pay My Property Taxes?
Even though you'll get a redemption period after an Illinois tax sale, in most cases, it's better to take action before you become delinquent on your taxes to make them more affordable.
You could, for example, find out if you meet the criteria for a property tax exemption or try to reduce the amount of taxes that you must pay by challenging the taxable value of your home (if you think the valuation is too high).
Learn More About How Illinois Property Taxes Work
To get more information about what happens if you don't pay your Illinois property taxes, visit the Illinois Legal Aid website.
If you're already facing a property tax sale in Illinois and have questions (or need help redeeming your property), consider talking to a foreclosure lawyer, tax lawyer, or real estate lawyer.