What Happens If I Owe Back Property Taxes in Indiana?
Falling behind on property taxes in Indiana triggers a separate legal process from mortgage foreclosure — one with its own timeline, redemption rights, and consequences. Understanding exactly how Indiana's tax sale process works gives you the information you need to protect your home and your equity.
Call (317) 495-3440 — Free ConsultationHow Indiana Property Taxes Work
Indiana property taxes are assessed annually and billed in two installments — typically due May 10 and November 10. If you miss a payment, a penalty of 5% is added immediately, increasing to 10% after 30 days. The county treasurer tracks delinquent accounts and initiates the tax sale process after taxes remain unpaid for 18 months.
The Tax Sale Process Under IC 6-1.1-24
Under IC 6-1.1-24, if property taxes remain delinquent for 18 months, the county auditor places the property on the tax sale list. The county holds a public tax sale (typically in the fall) where investors can purchase tax lien certificates. The investor pays the delinquent taxes and receives a certificate entitling them to interest on their investment. You still own the property at this point — but you must redeem the certificate to clear the lien.
The Redemption Period: Your Window to Act
After a tax lien certificate is sold, you have a redemption period to pay off the certificate plus interest and penalties. Under IC 6-1.1-25, the redemption period is generally one year from the date of the tax sale. During this period, you can sell the property and use the proceeds to redeem the certificate at closing. If you do not redeem within the redemption period, the certificate holder can petition the court for a tax deed — transferring ownership to them.
The Tax Deed Process: Losing Your Property
If you fail to redeem the tax lien certificate within the redemption period, the certificate holder files a petition for a tax deed in the circuit court. The court must provide notice to all interested parties. If the petition is granted, a tax deed is issued transferring ownership of the property to the certificate holder. Unlike a mortgage foreclosure, there is no post-deed redemption right. Once the tax deed is issued, you lose all ownership rights.
Selling Your House to Pay Back Taxes
If you owe back property taxes, selling your house is often the most effective way to resolve the situation. The delinquent taxes, penalties, and any tax lien certificates are paid at closing from the sale proceeds. Bartolini Cash Buyers evaluates properties with delinquent taxes regularly. Vince B. personally reviews the tax situation, makes a cash offer, and works with the title company to resolve all tax obligations at closing. We can often close before a tax sale occurs.
Indiana Legal References
The following Indiana statutes are referenced on this page. Links go directly to the Indiana General Assembly website.
Frequently Asked Questions
Get Your Free Cash Offer
Tell us about your property and we'll be in touch with a no-obligation cash offer.
Why homeowners choose us
- Speak directly with Vince — not a call center
- Get a real cash number for your property
- Understand your foreclosure options before deciding
- Close in as little as 7 days if you choose to move forward
Written offer
Send Your Info — We'll Be in Touch
Prefer to talk first?
Call Vince directly — no hold music, no call center. Just a straight conversation about your situation and your options.
Call anytime
Free Confidential Call
Confidential · No obligation · Vince answers directly