Esquire Asset Recovery, LLC
Esquire Asset Recovery, LLC
Virginia Tax Lien and Tax Deed
What Happens If I Don't Pay Property Taxes in Virginia?
| Judicial | Non Judicial | Comment | Process Period | Publish Sale | Redemption Period | Sale/NTS |
|---|---|---|---|---|---|---|
| Judicial only | 135 days | N/A | None | Court |
Having delinquent property taxes in Virginia can lead to a tax sale. Virginia law doesn't allow you to redeem your home after a tax sale.
Having delinquent property taxes in Virginia can lead to serious consequences, including penalties, interest charges, a tax lien, and even the potential loss of your home through a tax sale. And, unlike many other states, Virginia law doesn't provide a redemption period after a tax sale during which homeowners can reclaim their property.
So, if you want to protect your protect your property rights, you should understand how property taxes work and the consequences of failing to pay them in Virginia.
What Is a Tax Lien and How Does It Affect Me in Virginia?
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.
When homeowners don't pay their property taxes, the overdue amount becomes a lien on the property. A lien effectively makes the property act as collateral for the debt. All states have laws that allow the local government to sell a home through a tax sale process to collect delinquent taxes.
So, if you're a homeowner in Virginia and you're delinquent in paying your property taxes, you could potentially lose your home to a tax sale after a judicial process (basically, a tax foreclosure). Fortunately, a tax sale usually only happens if you don't respond to notice from the tax collector about getting caught up. But you'll lose your home if you let the tax sale go through.
What Are the Legal Consequences of Not Paying Property Taxes?
Once there is a tax lien on a property, state law establishes how property tax sales or tax foreclosures work. Typically, if a property owner is behind on their property taxes, the government will take the property and liquidate it, sell the property, or sell the tax lien, using the funds to pay off the tax bill. (Usually, the purchaser of the lien can later initiate a sale process if the taxes aren't paid.) But the exact process depends on state law.
State law defines when a property becomes subject to a tax lien, the process for selling the lien or the property at public auction (or otherwise liquidating the property to cover an unpaid tax debt), and the requirements for transferring ownership if taxes remain unpaid. State law also sets redemption periods, notice requirements, and the rights of property owners to receive any surplus funds from the sale, as decided by the U.S. Supreme Court in Tyler v. Hennepin County, 598 U.S. 631 (2023). The Tyler decision prohibits taxing authorities from keeping excess sale proceeds without providing the former owner an opportunity to recover those funds.
Local rules and county procedures govern how a tax sale or foreclosure is actually conducted. These rules sometimes establish additional requirements for the sale process, such as how and where bids are accepted, what documentation is required, and how proceeds are distributed after the sale.
In most cases, Virginia uses a tax deed sale process.
"In most cases, Virginia uses a tax deed sale process."
Nonjudicial Foreclosure Is Allowed for Some Properties
A nonjudicial (out of court) foreclosure process can be used to sell a parcel of real property if it is assessed at $10,000 or less, and the taxes are delinquent on December 31 following the third anniversary of the due date.
A nonjudicial process may also be used if the property is assessed at more than $10,000 but no more than $25,000, isn't subject to a recorded mortgage or deed of trust lien, the taxes are delinquent on December 31 following the third anniversary of the due date, and the property meets other criteria, like:
the parcel is no more than 43,560 square feet (one acre) and is unimproved
the property is unimproved and the locality's zoning administrator determines the property is unsuitable for building due to factors such as size, shape, or zoning, for example
the property has been declared to be a nuisance or blighted, or
the property has a condemned structure or derelict building. (Va. Code § 58.1-3975 (2025).)
What Are the Penalties and Interest for Delinquent Property Taxes in Virginia?
If you fail to pay your property taxes, interest is charged at the rate of 10% until payment in full is received. (Va. Code. § 58.1-3916 (2025).)
What Are the Consequences of Not Being Able to Pay Property Taxes in Virginia?
In most cases in Virginia, if your property taxes are delinquent on December 31 following the second anniversary of the due date, the locality can start a foreclosure on your home by filing a lawsuit in court seeking permission to sell the property. (Va. Code § 58.1-3965 (2025).) (The foreclosure can start on the first anniversary of when the taxes became due for some properties, like condemned structures, derelict buildings, or properties that are declared blighted.)
If you don't take steps to stop the sale—either by providing a valid defense or by getting caught up on the delinquent amounts—the court will issue a judgment. Then, your home will be sold, typically at a public auction. (Va. Code § 58.1-3969 (2025).) If no one bids on the property, the county, city, or town can purchase it at the sale. (Va. Code § 58.1-3970 (2025).)
After the sale, the new owner will get a deed (title) to your home, and you'll lose ownership permanently. (Va. Code § 58.1-3965 (2025).)
Notice of a Tax Foreclosure in Virginia
At least 30 days before starting the lawsuit, the tax collector must send you (the property owner) a notice. The notice must also be published in a newspaper at least 30 days before the foreclosure. (Va. Code § 58.1-3965 (2025).)
Stop the Tax Sale By Paying the Delinquent Amounts
To stop the sale, you must pay all accumulated taxes, penalties, reasonable attorneys' fees, interest, and costs, typically by 5:00 on the day before the auction. (Va. Code § 58.1-3965 (2025).) Check with the county treasurer to find out the exact deadline where you live.
Paying Off the Tax Debt in Installments
Under Virginia law, if you can't afford to pay the entire overdue amount at once, you can enter into an agreement to pay in installments over an extended period, though no longer than 72 months. (Va. Code § 58.1-3965 (2025).)
What Happens If You Default on the Installment Agreement
If you fall behind in your payments, the treasurer or other officer responsible for collecting the taxes can void the agreement upon 15 days written notice. Then, the foreclosure will proceed. (Va. Code § 58.1-3965 (2025).)
Also, you won't be eligible to enter into another installment agreement for that property within three years of the default. (Va. Code § 58.1-3965 (2025).)
Look Out for Legal Changes
In this article, you'll find details on property tax sale laws in Virginia, with citations to statutes so you can learn more. Statutes change, so checking them is always a good idea. To look up Virginia's tax sale laws, go to §§ 58.1-3965 through 58.1-3975 of the Code of Virginia. 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.
Can I Get My Home Back After a Tax Sale in Virginia?
Many states allow delinquent taxpayers to pay off the amounts owed and keep the home, even after a tax sale happens. This process is also 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, like Virginia, the redemption period happens before the sale.
So, you can't redeem your home after a tax sale in Virginia.
"You can't redeem your home after a tax sale in Virginia."
Does a Mortgage Survive a Tax Sale in Virginia?
Property tax liens have priority. So, a tax sale process can eliminate mortgages (and deeds of trust). If your mortgage loan isn't escrowed and you don't pay the property taxes, the loan servicer will usually pay them to stop a tax sale from happening.
Most mortgages say the lender can add the amount it paid for the taxes to your loan. You'll then have to make repayment arrangements with the servicer or potentially face a foreclosure.
What Options Do I Have If I Can't Afford to Pay My Property Taxes in Virginia?
If you're having trouble paying your property taxes, you might be able to reduce your tax bill or get extra time to pay. Also, many localities in Virginia offer property tax relief, including exemptions or deferrals for certain homeowners, such as those age 65 and older or those who are permanently and totally disabled.
Again, as described above, you can enter into an agreement to pay in installments if you can't afford to pay the entire overdue amount at once.
What Happens to Excess Proceeds (Surplus Funds)?
If the tax sale result in surplus funds (more money than what's needed to pay off the tax debt), you (the former homeowner) can claim those funds. (Va. Code § 58.1-3967 (2025).)
Learn More About Property Taxes in Virginia
To learn more about property taxes in Virginia, visit tax.virginia.gov.
If you're already facing a property tax sale in Virginia and have questions or need help redeeming your property, consider talking to a foreclosure, tax, or real estate lawyer.