Can I sell my house if I have back property taxes in Pennsylvania?

Yes. Outstanding property taxes don't prevent you from selling your house. Pennsylvania delinquent taxes become a lien on the property, which shows up in the title search and gets paid from your sale proceeds at closing. You don't need to pay taxes upfront before selling — the sale pays them.

What is a tax lien on a property?

When property taxes go unpaid in Pennsylvania, the county (Dauphin, Lehigh, etc.) records a lien against the property. A lien is a legal claim that must be satisfied when the property is sold. The title company will identify all liens during the title search and pay them from closing proceeds before you receive the remaining balance.

What happens if I owe more in back taxes than my house is worth?

If delinquent taxes and any other liens exceed your property's value, you're in an underwater situation. In Pennsylvania, this is relatively uncommon for property taxes alone. Contact the county Tax Claim Bureau — most counties have installment payment programs or offer discounts on delinquent taxes. A real estate attorney can help evaluate options including a short sale or deed in lieu.

How far back can Pennsylvania go to collect delinquent property taxes?

Pennsylvania has no statute of limitations on real property tax liens — they remain on the property until paid. However, after two years of delinquency, the county Tax Claim Bureau can begin the upset sale process. After that, properties can go to repository and eventually judicial sale. Acting before that process advances protects your equity and credit.

What is a Pennsylvania upset tax sale?

When property taxes go unpaid for two years, Pennsylvania counties can schedule the property for an "upset sale" — a public auction where the property can be sold for the delinquent taxes plus costs. Unlike a sheriff sale (which is driven by mortgage default), tax upset sales are driven by the county Tax Claim Bureau. Selling the property before an upset sale is generally better for the homeowner.

Will selling my house affect my IRS back taxes?

Federal IRS tax liens are also attached to property and must be paid or resolved at closing. If you have an IRS lien, the title company will contact the IRS for a payoff amount. IRS liens have priority rules that affect how proceeds are distributed. This is more complex than local property tax liens — an attorney's involvement is recommended.

How does a cash sale help with back taxes?

A cash sale closes quickly, which stops the accumulation of additional penalties and interest. It also eliminates the financing contingency risk — conventional mortgage buyers can have deals fall through if liens are complex. A cash buyer handles the lien resolution at closing without requiring you to pre-pay taxes or get mortgage approval.

Sell House with Back Taxes in PA

The Key Thing to Understand

Property tax liens don't prevent you from selling. They follow the property, not you. At closing, the title company identifies all outstanding liens and pays them from your sale proceeds. If your home has $8,000 in delinquent taxes and you sell for $150,000, you receive $142,000 minus any mortgage balance and closing costs. The taxes are not your upfront burden.

How Pennsylvania Property Tax Liens Work

Taxes go unpaid

Property taxes become delinquent after January 1 of the year following assessment. Penalties and interest accrue.

County Tax Claim Bureau takes over

After one year of delinquency, the county Tax Claim Bureau begins the collection process. The debt is formally liened against the property.

Upset sale eligibility (year 2+)

After two years of delinquency, the property becomes eligible for an upset tax sale — a public auction. You can still sell privately before this happens.

Cash sale before the upset sale

A private sale (including a cash sale to us) can close before the upset sale, paying all delinquent taxes from proceeds. You keep any remaining equity.

County Tax Claim Bureaus in Our Service Area

Dauphin County Tax Claim Bureau (Harrisburg)

Dauphin County Courthouse, 101 Market Street, Harrisburg PA 17101

dauphincounty.gov

Lehigh County Tax Claim Bureau (Allentown)

Lehigh County Courthouse, 455 W Hamilton St, Allentown PA 18101

lehighcounty.org

Why a Cash Sale Works Better Than Waiting

✓ Taxes compound daily

Delinquent taxes accrue interest and penalties. Every month you wait, the lien grows. A fast cash close stops the clock.

✓ No lender complications

Conventional mortgage buyers require a clear title. Complex tax lien situations can kill traditional deals mid-stream. Cash buyers don't have this problem.

✓ Protect your equity

If you wait for an upset sale, you receive nothing above the tax lien — any equity is eliminated. A private sale preserves whatever equity exists.

✓ One close, everything resolved

The title company handles payoffs of all delinquent taxes and liens at closing. You don't coordinate separately with the Tax Claim Bureau.

Get a Cash Offer — Tax Liens Welcome

Back taxes are paid from closing proceeds. No upfront payment required from you.

Selling Your PA House with Back Property Taxes

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