Delinquent Property Taxes in Alabama: Your County Picked the Lien Auction or the Courthouse Sale
Reviewed by DocDraft Legal Team · Alabama · Last updated October 21, 2026
Which rules bind an Alabama homeowner turns on a choice the county made, not on anything the homeowner did. Delinquent property taxes are taxes an owner failed to pay by the date the state set, after which the county adds interest and can eventually force a sale of the property to collect them. The tax collecting official for each county has the sole authority to decide whether the county collects by selling a tax lien or by selling the property, and that method applies to all real property in the county for the year so decided (Ala. Code 40-10-180). In a lien county the official auctions the lien and issues a certificate to whoever bids the lowest interest rate, with an opening bid that may not exceed 12 percent (Ala. Code 40-10-184). In a property county the probate court decrees a sale, the land is auctioned at the courthouse, and a deed follows three years later (Ala. Code 40-10-1, 40-10-15, 40-10-29). Taxes are due and payable October 1 and delinquent if not paid before January 1 succeeding, then bear 12 percent per annum (Ala. Code 40-11-4, 40-5-9). The redemption figures split with the route. A certificate is redeemed at the rate printed on it, paid to the tax collecting official (Ala. Code 40-10-193). Land sold at a tax sale is redeemed within three years of the sale by depositing the sale amount with eight percent per annum with the judge of probate (Ala. Code 40-10-120, 40-10-122). An owner who has retained possession faces no time limit for recovery (Ala. Code 40-10-82). Attorney review is available through DocDraft.
Find out where you stand in Alabama
Where are you with the unpaid property taxes?
DocDraft provides document preparation, not legal advice.
Can an Alabama county sell my house for unpaid property taxes, or only the tax lien?
Either, and the county decides. The tax collecting official for each county has the sole authority to decide whether the county collects delinquent property taxes by selling a tax lien or by selling the property, and that method applies to all real property in the county for the year so decided (Ala. Code 40-10-180).
How long is the Alabama redemption period after a tax sale?
Three years from the date of the sale where someone other than the state bought the land, or any time before title passes out of the state where the state bought it (Ala. Code 40-10-120). Separately, there is no time limit for recovery by an owner of land who has retained possession (Ala. Code 40-10-82).
How much interest does an Alabama redemption carry?
It differs by route. Redemption of land sold to a party other than the state takes the sale amount with interest at eight percent per annum from the date of sale (Ala. Code 40-10-122). A tax lien certificate instead bears the rate bid at auction, where the opening bid may not exceed 12 percent (Ala. Code 40-10-184, 40-10-187).
When do Alabama property taxes become delinquent each year?
They are due and payable October 1 and delinquent if not paid before January 1 succeeding (Ala. Code 40-11-4). All ad valorem taxes becoming delinquent bear interest at the rate of 12 percent per annum (Ala. Code 40-5-9). After January 1 the official mails a written demand, with a demand fee of five dollars per property (Ala. Code 40-5-7).
Alabama delinquent property tax rules at a glance
Unpaid Alabama property taxes are taxes an owner did not pay by the statutory date, after which the county adds interest and can force a sale to collect them. The unusual part is that there is no single Alabama procedure to learn. Each county's tax collecting official alone decides, year by year, whether that county sells a tax lien or sells the property, and a change of method must be published or advertised for three consecutive weeks no later than October 1 (Ala. Code 40-10-180). A lien county runs a bid-down auction held no earlier than March 1 and no later than June 15, awarding the certificate on the lowest interest rate bid under a 12 percent opening ceiling (Ala. Code 40-10-181, 40-10-184). A property county goes through the probate court for a decree of sale, a courthouse auction, and a deed after three years (Ala. Code 40-10-11, 40-10-15, 40-10-29).
An inherited house in a lien auction county, where nobody knows the rate until the gavel falls
Picture a two bedroom house in Andalusia, inherited in 2024, in a county whose Revenue Commission has elected tax lien auctions. The 2025 taxes of roughly 1,840 dollars went unpaid, so they were delinquent on January 1, 2026 and started carrying 12 percent per annum (Ala. Code 40-11-4, 40-5-9). A 45 dollar administrative fee attached when the auction list was prepared (Ala. Code 40-10-184). Mailed notice went out more than 30 days ahead (Ala. Code 40-10-182), and in May the lien went to whoever bid the lowest rate beneath the 12 percent opening ceiling. The heir learns that rate only by reading the certificate (Ala. Code 40-10-187), then redeems at the Revenue Commission counter (Ala. Code 40-10-193). No foreclosure action could have been filed before May 2030 (Ala. Code 40-10-197). What the counter actually quotes is for that office to state.
Relevant Laws
Ala. Code 40-11-4 (taxes due October 1, delinquent before January 1)
Provides that all taxes, unless otherwise provided by law, shall become due and payable on October 1 in each year, and shall become delinquent if not paid before January 1 succeeding, with exceptions for taxpayers moving from the county, closing out or going out of business, impending insolvency, and goods advertised for auction, bankrupt, insolvent, assignment or fire sales, in which cases the taxes become due and payable at once.
Ala. Code 40-1-3 (the tax lien attaches from October 1)
Provides that from and after October 1 of each year, when property becomes assessable, the state has a lien upon each and every piece or parcel of property owned by a taxpayer for the payment of all taxes which may be assessed against the taxpayer, that the lien continues until the taxes are paid, that the county and any municipality have a like lien, and that these liens are superior to all other liens and exist in the order named.
Ala. Code 40-5-9 (12 percent per annum on the delinquency itself)
Provides that notwithstanding section 40-1-44, all ad valorem taxes becoming delinquent bear interest at the rate of 12 percent per annum, and that the interest shall be added to and collected as part of the taxes and reported in the manner prescribed by the Comptroller. This is the pre-sale rate on the delinquency, which is a different figure from the post-sale redemption rate.
Ala. Code 40-5-7 and 40-5-8 (the written demand and accrued costs)
Section 40-5-7 requires the tax collecting official, after January 1, to make a demand in writing by first class mail upon delinquent taxpayers or their agents, sets the demand fee at five dollars for each property, and provides that failure to comply does not invalidate the title to any property sold for taxes. Section 40-5-8 provides that a taxpayer paying after delinquency pays all costs, fees, charges and interest lawfully accrued at the time of payment.
Ala. Code 40-10-180 (the county elects the lien route or the property route)
Declares that the purpose of the article is to give counties an alternative remedy for collecting delinquent property taxes by the sale of a tax lien, gives the tax collecting official for each county the sole authority to decide whether the county uses the sale of a tax lien or the sale of property, provides that the chosen method applies to all real property in that county for the year so decided, and requires a change of remedy to be published on the official's website or advertised once a week for three consecutive weeks, not later than October 1.
Ala. Code 40-10-181 (definitions, including the auction window and the office)
Defines the tax collecting official as the elected or appointed person responsible for collecting ad valorem taxes in a county, defines the tax lien as the perpetual first priority lien provided by section 40-1-3, and defines a tax lien auction as the public sale of all tax liens advertised under section 40-10-182 and held no earlier than March 1 or later than June 15 of the current ad valorem tax year, where the awarding of the certificate is based on the lowest interest rate bid.
Ala. Code 40-10-182 and 40-10-183 (auction notice and the auction list)
Section 40-10-182 requires the tax collecting official to notify the delinquent taxpayer of the auction and all charges at least 30 days before the tax lien auction by first class mail and by any one of newspaper advertising once a week for three consecutive weeks, advertising on an online site controlled by the official, or posting at the courthouse and if possible in the precinct, with the notices declaring the time, the method and the location. Section 40-10-183 requires the auction list at least 30 days before the auction.
Ala. Code 40-10-184 (bid-down auction, the 12 percent ceiling, the 45 dollar fee)
Provides that a tax lien is sold at auction to the person who pays all taxes, interest, penalties, fees and costs due, pays an administrative fee of forty-five dollars effective upon preparation of the auction list, and bids the lowest interest rate on the amount required to redeem, and that the beginning interest rate bid shall not exceed a rate of 12 percent with additional bids made at a rate less than the immediately preceding bid. It also provides that the sale of a tax lien does not extinguish a deed restriction, deed covenant or easement.
Ala. Code 40-10-187 (the tax lien certificate and the rate it bears)
Requires the tax collecting official to execute and deliver a tax lien certificate to each purchaser on a form provided by the Department of Revenue, provides that the certificate bears the interest rate per annum as bid at the auction or agreed at a tax lien sale until redeemed, requires the certificate to recite the sale date, the year of assessment, the amount and the rate, sets a five dollar fee for acknowledging a transfer, and requires the official to mail the owner notice naming the purchaser within 30 days of a completed auction or sale.
Ala. Code 40-10-193 (redeeming a tax lien, and where to pay)
Provides that an auctioned or sold tax lien may be redeemed by the owner, a mortgagee or purchaser of the property, or any person with a legal or equitable interest including a lien creditor, by payment to the tax collecting official of the total amount specified on the certificate, excluding lost certificate fees, together with the cost of a title report for use in a foreclosure and quiet title action, plus interest at the rate specified in the certificate and any due and owing taxes, interest, penalties, fees and costs. Statutory fees paid by the holder are added and bear the same rate.
Ala. Code 40-10-197 (four years before foreclosure, redemption until judgment)
Provides that at any time not less than four years after the tax lien auction or sale, but not more than 10 years after it, an unredeemed certificate holder may bring a circuit court action to foreclose the right to redeem and quiet title; requires a notice of intent at least 30 and not more than 180 days before filing, on pain of dismissal; allows any person entitled to redeem to redeem at any time before judgment is entered, with court-ordered costs and attorney fees if already served; allows a person entitled to redeem to demand a public auction instead; and voids the certificate if no action is commenced within 10 years.
Ala. Code 40-10-120 (who may redeem land sold for taxes, and by when)
Provides that real estate sold for taxes and purchased by the state may be redeemed at any time before the title passes out of the state, or, if purchased by any other purchaser, may be redeemed at any time within three years from the date of the sale by the owner, heirs or personal representatives, a mortgagee or purchaser, or any person with a legal or equitable interest including a lien creditor; gives an infant or insane person one year after the disability is removed; and gives a mortgagee or lienholder recorded at the time of the sale one year from written notice of the purchase.
Ala. Code 40-10-122 (eight percent per annum, and the improvement reimbursements)
Provides that redemption of land sold to one other than the state is made by depositing with the judge of probate the amount of money for which the lands were sold, with interest payable at the rate of eight percent per annum from the date of sale, and on the portion of any excess bid that is less than or equal to 15 percent of the market value as established by the assessing official, together with all taxes paid by the purchaser with interest at eight percent, all officers' fees and fifty cents to the judge. Where the property contained a residential structure at the time of sale, insurance premiums and preservation improvements are also reimbursed with eight percent, and failure to reimburse before January 1 of the subsequent tax year forfeits the redemptioner's right.
Ala. Code 40-10-121 (redeeming land that was bid in for the state)
Provides that to redeem land sold to the state the party deposits with the judge of probate the amount for which the lands were sold, with interest at the rate of eight percent, together with all taxes found to be due since the date of sale with interest at eight percent and all costs and fees due to officers, sets out the Land Commissioner application forms and the assessor's valuation of the intervening years, gives a right to protest that valuation to the board of equalization, and adds any unpaid municipal taxes with interest where the land sits in a municipality.
Ala. Code 40-10-82 and 40-10-83 (the possession clock and judicial redemption)
Section 40-10-82 bars an action for recovery of real estate sold for taxes unless brought within three years from the date the purchaser became entitled to demand a deed, but provides that there shall be no time limit for recovery by an owner of land who has retained possession, and that where there is no real occupancy constructive possession follows the title of the original owner and may be cut off only by three years of adverse possession by the tax purchaser. Section 40-10-83 sets the interest rate on amounts awarded at eight percent for actions related to taxes delinquent on or after January 1, 2020.
Ala. Code 40-10-28 (the excess bid, and the three and 10 year windows)
Provides that the excess arising from the sale remaining after the decree amount and later-accruing costs is paid to a person or entity who has redeemed, on proof presented to the county commission within three years after the tax sale, that the excess is held in a separate account in the county treasury during that period, and that unclaimed funds then pass to the county general fund. It also provides that after three years but no later than 10 years after a sale occurring in calendar year 2016 or later the excess is paid on a circuit court redemption order, on recorded proof of a negotiated redemption by the owner at the time of sale or a subsequent owner, or on a recorded release and waiver of the right to redeem.
Ala. Code 40-10-7 (partial payment before the decree of sale)
Provides that the tax collectors of the several counties are authorized and required to accept any moneys tendered in partial payment of ad valorem taxes at any time before the decree of sale of the properties liable for them, provided the payment is not less than one fourth of the total amount of taxes due, requires the amount paid to be credited first upon accrued interest and then upon the principal of the taxes, requires a receipt on a Department of Revenue form, and states that nothing in the section postpones the payment of the taxes or waives any lien or right of enforcement of collection.
Ala. Code 40-10-1, 40-10-12, 40-10-15, 40-10-18 and 40-10-29 (the property sale route)
Section 40-10-1 lets the probate court of each county order the sale of lands for the payment of taxes on the tax collector's report that the taxes could not be collected without a sale. Section 40-10-12 requires 30 days notice before the sale day by publication for three successive weeks, or courthouse and precinct posting at least three weeks before. Section 40-10-15 requires the sale at the courthouse at public auction to the highest bidder for cash between 10:00 a.m. and 4:00 p.m. Section 40-10-18 has the judge of probate bid the parcel in for the state if no bid covers the decree. Section 40-10-29 has the judge execute a deed after three years from the sale date on a five dollar fee.
Ala. Code 40-10-4 and 40-10-127 (the show cause notice and the redemption certificate)
Section 40-10-4 requires the judge of probate to issue a notice telling the reported delinquent taxpayer to appear at the next term of the probate court and show cause why a decree for the sale of the property should not be made, served by the tax collector personally, by leaving a copy at the residence or place of business, or by certified or registered mail marked for delivery only to the addressee with return receipt demanded, with publication or posting for three weeks where the taxpayer is a nonresident or two notices return unserved. Section 40-10-127 requires the judge of probate to issue a signed certificate of redemption on payment and to notify the county treasurer.
Alabama Department of Revenue: Tax Delinquent Property and Land Sales
The state Department of Revenue page on property the state holds from tax sales, which states that a price quote for state-held tax delinquent property is requested by electronic application, that the applicant has 10 calendar days from the date on the quote to remit payment, that where the state has held the certificate less than three years the purchaser receives an assignment of the certificate and where it has held it over three years a tax deed is issued, that neither gives the holder clear title, and that additional information is in Title 40, Chapter 10.
Covington County Revenue Commission: notice of the county tax lien auction
A county .gov page showing the county election in practice. The Revenue Commission gives notice that it will conduct a tax lien auction for the collection of delinquent property taxes beginning with the 2023 to 2024 tax year, quotes section 40-10-180 for the proposition that the tax collecting official of each county has the sole authority to decide between selling tax liens and selling property, links the delinquent property tax list, and gives the office address and hours for payment questions.
Regional Variances
Alabama delinquent property tax rules at a glance
Sale mechanism
Two routes, elected county by county. The tax collecting official for each county has the sole authority to decide whether the county sells a tax lien or sells the property, and the method applies to all real property in that county for the year so decided (Ala. Code 40-10-180). A lien county auctions the lien and issues a tax lien certificate (Ala. Code 40-10-182, 40-10-187). A property county proceeds by probate court decree to a courthouse auction, a certificate of purchase, and a deed after three years (Ala. Code 40-10-1, 40-10-11, 40-10-15, 40-10-19, 40-10-29).
Delinquency date
One date, not two installments. Taxes become due and payable October 1 in each year and become delinquent if not paid before January 1 succeeding (Ala. Code 40-11-4). The state, county and any municipality hold a lien on the parcel from and after October 1, continuing until the taxes are paid, superior to all other liens (Ala. Code 40-1-3).
Interest and fees before any sale
Interest rather than a flat penalty. All ad valorem taxes becoming delinquent bear interest at the rate of 12 percent per annum, added to and collected as part of the taxes (Ala. Code 40-5-9). A written demand by first class mail follows January 1, with a demand fee of five dollars for each property (Ala. Code 40-5-7), and a taxpayer paying late owes all costs, fees, charges and interest lawfully accrued (Ala. Code 40-5-8).
Time before sale
Short on both routes. A tax lien auction is held no earlier than March 1 and no later than June 15 of the current ad valorem tax year, with the auction list prepared and the taxpayer notified at least 30 days ahead (Ala. Code 40-10-181, 40-10-182, 40-10-183). On the property route the book of unpaid lands reaches the judge of probate on or before March 1, a decree follows the show cause term, and the sale needs 30 days notice (Ala. Code 40-10-3, 40-10-11, 40-10-12).
Redemption period and clock
The clock starts at the sale, not at the delinquency. Land sold to a party other than the state may be redeemed within three years from the date of the sale; land purchased by the state may be redeemed any time before title passes out of the state, and a person under 19 or insane at the sale gets a year after the disability lifts (Ala. Code 40-10-120). A second clock runs alongside: there is no time limit for recovery by an owner of land who has retained possession (Ala. Code 40-10-82). On the lien route the holder cannot sue to foreclose until four years after the auction and must sue within 10, and redemption stays open until judgment is entered (Ala. Code 40-10-197).
Redeemer's charge
Two different kinds of number. On the lien route it is a bid-down annual rate: the beginning interest rate bid shall not exceed 12 percent and later bids are made at a rate less than the preceding bid, the certificate then bears the rate bid, and redemption runs at the rate specified in the certificate (Ala. Code 40-10-184, 40-10-187, 40-10-193). On the property route it is a simple annual rate fixed by statute: eight percent per annum from the date of sale on the amount for which the land sold, and eight percent on taxes the purchaser paid (Ala. Code 40-10-122). Redemption from the state is also eight percent (Ala. Code 40-10-121).
Other redemption costs
On a lien, everything itemised on the certificate excluding lost certificate fees, the cost of a title report for a foreclosure and quiet title action, current taxes, and statutory fees the holder paid, which themselves bear the certificate rate (Ala. Code 40-10-193). On a tax sale, officers' fees and fifty cents to the judge of probate (Ala. Code 40-10-122), plus insurance premiums and preservation or permanent improvements with eight percent, reimbursable before January 1 of the subsequent tax year on pain of forfeiting the right to redeem (Ala. Code 40-10-122).
Notice to the owner
Lien route: first class mail at least 30 days before the auction, plus newspaper advertising for three consecutive weeks, an online posting, or a courthouse posting (Ala. Code 40-10-182), mailed notice naming the purchaser within 30 days of the auction (Ala. Code 40-10-187), and a notice of intent 30 to 180 days before any foreclosure action (Ala. Code 40-10-197). Property route: a probate show cause notice served personally, by copy left at the residence, or by certified or registered mail with return receipt demanded (Ala. Code 40-10-4), then 30 days notice of sale (Ala. Code 40-10-12).
Where to redeem
A different counter per route. A tax lien certificate is redeemed by payment to the tax collecting official, defined as the elected or appointed person responsible for collecting ad valorem taxes in a county, so the office is titled Tax Collector, Revenue Commissioner or License Commissioner depending on the county (Ala. Code 40-10-181, 40-10-193). Once a foreclosure action is on file the money is paid into the circuit court instead (Ala. Code 40-10-197). Land sold at a tax sale is redeemed by deposit with the judge of probate, who issues the certificate of redemption (Ala. Code 40-10-122, 40-10-127).
Surplus proceeds
Claimable, on proof. Excess over the decree amount sits in a separate county treasury account and is paid to a person who proves a proper redemption to the county commission within three years after the tax sale; after three years and up to 10 it can reach the owner at the time of sale on a court order, recorded proof of a negotiated redemption, or a recorded release and waiver, and unclaimed funds then become the county's (Ala. Code 40-10-28). On the lien route a surplus exists only where a person entitled to redeem demands a public auction in the foreclosure action (Ala. Code 40-10-197).
Payment plan
A partial payment right, not a plan, and it does not halt anything. Tax collectors are authorized and required to accept any moneys tendered in partial payment of ad valorem taxes at any time before the decree of sale, provided the payment is at least one fourth of the total taxes due, credited first upon accrued interest and then upon principal; the section states that nothing in it postpones the payment of the taxes or waives any lien or right of enforcement of collection (Ala. Code 40-10-7).
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