Delinquent Taxes FAQ: Questions New York Homeowners Ask
Hudson River Realtors | Referral Network Serving New York State
How long can property taxes be delinquent before I lose my home in New York?
Timelines vary by municipality, but most New York counties begin in rem foreclosure proceedings after one to two years of delinquency. You then have an additional redemption period (typically one to two years) to pay and keep your home. The total timeline from first missed payment to loss of property is usually three to four years, but act as early as possible.
Can I sell my home if I owe back taxes?
Yes. The delinquent taxes will be paid from the sale proceeds at closing. As long as your property is worth more than the total amount owed (taxes, mortgage, fees), you can sell and keep the remaining equity.
What is the interest rate on delinquent property taxes in New York?
Interest rates vary by municipality, typically ranging from 10 to 18 percent per year. In NYC, the rate on tax lien certificates is capped at 18 percent. Outside NYC, your county treasurer's office can tell you the exact rate for your municipality.
Can I set up a payment plan for delinquent taxes?
Most New York municipalities offer installment agreements, typically over 12 to 36 months. Contact your local tax collector or county treasurer to ask about options. You will generally need to stay current on new taxes while paying down the delinquency.
What property tax exemptions am I eligible for?
Common exemptions include STAR (all homeowners), Enhanced STAR (seniors 65+), veterans exemptions, and senior/disability exemptions. Contact your local assessor's office to learn about exemptions specific to your municipality and situation.
What happens at a tax lien sale?
The municipality sells the right to collect your unpaid taxes to a third-party investor. The investor pays the tax debt and receives a lien certificate. You then owe the investor the taxes plus interest. If you don't pay during the redemption period, the investor may foreclose.
Will delinquent taxes affect my credit score?
Delinquent property taxes themselves do not typically appear on credit reports. However, if a tax lien is filed and recorded, it may appear in public records searches that some creditors review. A tax foreclosure judgment would have a more significant impact.
Can I negotiate my property tax assessment?
Yes. If you believe your property is over-assessed, you can file a grievance with your local board of assessment review, typically by May 1. If the grievance is denied, you can file a Small Claims Assessment Review (SCAR) in court. A successful challenge reduces your ongoing tax obligation.
What if I inherited a property with delinquent taxes?
Tax obligations transfer with the property. As the new owner (or estate representative), you are responsible for the delinquent taxes. The good news is that you can sell the property to pay off the debt and keep any remaining equity, or apply for exemptions and payment plans in your own name.
How can Hudson River Realtors help with my tax situation?
We connect you with agents who specialize in tax-distressed property sales in your area. They can help you evaluate whether to sell or pursue payment plans, price the property accurately, and coordinate a closing that satisfies all tax obligations. The referral is free.