Delinquent Property Taxes in California: Five Years of Default, Then the County Sells the Parcel
Reviewed by DocDraft Legal Team · California · Last updated October 21, 2026
In California, property taxes left unpaid past the statutory date do not become a lien certificate for an investor, they put the parcel itself on a five year path to a county auction. Delinquent property taxes are taxes a homeowner did not pay by the date the state fixed, after which the county adds penalties and can force a sale to collect them. The tax collector auctions the parcel and, on full payment, deeds it to the purchaser (Cal. Rev. & Tax. Code 3708), conveying title free of all encumbrances existing before the sale, subject to listed exceptions (Cal. Rev. & Tax. Code 3712). The runway is long and then it stops dead. Unpaid taxes are declared in default by operation of law at 12:01 a.m. on July 1 (Cal. Rev. & Tax. Code 3436). Five years or more after that, or three or more for nonresidential commercial property, the tax collector gets the power to sell (Cal. Rev. & Tax. Code 3691). Across those years a redemption penalty of 1 1/2 percent a month runs on the declared amount of defaulted taxes (Cal. Rev. & Tax. Code 4103), on top of the 10 percent penalty each missed installment already carries (Cal. Rev. & Tax. Code 2617, 2618). The edge is the auction itself. The right of redemption terminates at the close of business on the last business day prior to the commencement date of the tax sale (Cal. Rev. & Tax. Code 3707), and there is no redemption after the sale. You redeem through the county tax collector, the county's redemption officer (Cal. Rev. & Tax. Code 4105). Attorney review is available through DocDraft.
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Where are you with the unpaid property taxes?
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When can a California county sell my house for unpaid property taxes?
Five years or more after the property has become tax defaulted, or three years or more in the case of nonresidential commercial property, the tax collector has the power to sell tax-defaulted property that has not been redeemed (Cal. Rev. & Tax. Code 3691). Default itself happens by operation of law on July 1 (Cal. Rev. & Tax. Code 3436).
How much is the California redemption penalty on defaulted property taxes?
A monthly penalty, not an annual rate. Beginning July 1 of the year of the declaration of tax default, redemption penalties run on the declared amount of defaulted taxes at 1 1/2 percent a month to the time of redemption, and a further 1 1/2 percent a month attaches each later July 1 (Cal. Rev. & Tax. Code 4103).
When exactly does the right to redeem end in California?
The right of redemption terminates at the close of business on the last business day prior to the commencement date of the tax sale (Cal. Rev. & Tax. Code 3707). A mailed remittance must be received in the tax collector's office before that time. Miss it and every person with title of record loses all legal and equitable interest.
When do California property taxes become delinquent each year?
Twice a year. The first half is due November 1 and is delinquent at 5 p.m., or the close of business, whichever is later, on December 10 (Cal. Rev. & Tax. Code 2617). The second half is due February 1 and is delinquent on April 10 (Cal. Rev. & Tax. Code 2618). A 10 percent penalty attaches after each date.
California delinquent property tax rules at a glance
A California parcel goes delinquent the moment an owner misses a statutory installment date, and the county then adds penalties and can ultimately sell it to collect what is owed. It runs on a deed, not a certificate. Unpaid taxes are declared in default on July 1 (Cal. Rev. & Tax. Code 3436), the tax collector gains the power to sell after five years, or three for nonresidential commercial property (Cal. Rev. & Tax. Code 3691), and the auction winner receives a recorded deed (Cal. Rev. & Tax. Code 3708, 3708.1). What is distinctive is the shape of the charge and of the deadline. The charge is monthly, 1 1/2 percent of the defaulted taxes (Cal. Rev. & Tax. Code 4103). The deadline is not a calendar date but the close of business on the last business day before the auction starts (Cal. Rev. & Tax. Code 3707).
A Riverside County rental that reaches year five with the auction two weeks out
Take a Riverside County duplex whose 2021 to 2022 taxes went unpaid, so the parcel was declared in default at 12:01 a.m. on July 1, 2022 (Cal. Rev. & Tax. Code 3436), carrying about 9,400 dollars of defaulted taxes. From that July 1 the redemption penalty has run at 1 1/2 percent a month on the declared amount, with more stacking each later July 1 (Cal. Rev. & Tax. Code 4103). In mid-2027 the owner receives a certified letter setting the auction and the redemption figure (Cal. Rev. & Tax. Code 3701). Because the parcel is residential, the power to sell arrived at five years (Cal. Rev. & Tax. Code 3691), and the right to redeem ends at the close of business on the last business day before the auction opens (Cal. Rev. & Tax. Code 3707). Whether a payment arrives in time is for the tax collector's records.
Relevant Laws
Cal. Rev. & Tax. Code 2617 and 2618 (delinquency dates and the 10 percent penalty)
Section 2617 provides that all taxes due November 1, if unpaid, are delinquent at 5 p.m., or the close of business, whichever is later, on December 10, and thereafter a delinquent penalty of 10 percent attaches. Section 2618 applies the same rule to the second half of taxes on real property, with an April 10 delinquency date.
Cal. Rev. & Tax. Code 2605 and 2606 (when the two installments are due)
Section 2605 makes half the taxes on real property on the secured roll, and all taxes on personal property, due and payable November 1. Section 2606 makes the second half of taxes on real property on the secured roll due and payable February 1.
Cal. Rev. & Tax. Code 2621 (cost added after the second installment is delinquent)
Provides that after the second installment of taxes on the secured roll is delinquent, the tax collector shall collect a cost of up to fifty-five dollars, but no more than the actual cost, for preparing the delinquent tax records and giving notice of delinquency on each separate valuation on the secured roll. The actual amount charged is set by the county.
Cal. Rev. & Tax. Code 3436 (declaration of default on July 1)
Provides that at 12:01 a.m. on July 1, the taxes, assessments, penalties, and costs on real property except tax-defaulted property and possessory interests, which have not been paid, shall by operation of law be declared in default. This is the event that starts the redemption penalty clock.
Cal. Rev. & Tax. Code 3351 (annual published notice of impending default)
Requires the tax collector, annually on or before June 8, to publish a notice of impending default for failure to pay taxes on real property on which the taxes, assessments, penalties and costs will not have been fully paid by the close of business on June 30, with a narrowed scope where the county sends reminder and redemption notices.
Cal. Rev. & Tax. Code 3691 (the power to sell, five years or three)
Provides that five years or more, or three years or more in the case of nonresidential commercial property, after the property has become tax defaulted, the tax collector has the power to sell and shall attempt to sell tax-defaulted property that has not been redeemed. It defines nonresidential commercial property, tolls the five years for unrepaired declared-disaster damage, lets a county apply the five year period to commercial property by ordinance, and sets a three year route on request of a city, county, nonprofit, or nuisance abatement lienholder.
Cal. Rev. & Tax. Code 3701 and 3702 (notice to parties of interest and published notice)
Section 3701 requires notice of the proposed sale by certified mail with return receipt requested, not less than 45 days nor more than 120 days before the sale, stating the date, time and place, the amount required to redeem, that the property may be redeemed up to the close of business on the last business day prior to the sale, and the right to claim excess proceeds. Section 3702 requires publication of the notice of intended sale once a week for three successive weeks, started not less than 21 days before the sale.
Cal. Rev. & Tax. Code 3707 (when the right of redemption terminates)
Provides that the right of redemption terminates at the close of business on the last business day prior to the commencement date of the tax sale, that a mailed remittance must be received in the tax collector's office before that time, that a person with title of record who does not redeem by then loses all rights including all legal and equitable interest, and that the right revives if the property is not sold.
Cal. Rev. & Tax. Code 3712 (what the tax deed conveys)
Provides that the deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale, with listed exceptions including installments of taxes and special assessments becoming payable after the sale, liens of non-consenting taxing agencies, easements and recorded restrictions, certain assessment bond and Mello-Roos special taxes, and certain federal Internal Revenue Service liens.
Cal. Rev. & Tax. Code 4102 and 4105 (the redemption amount and the redemption officer)
Section 4102 provides that the amount necessary to redeem is the total of all prior year defaulted taxes, delinquent penalties and costs, redemption penalties, and a redemption fee of fifteen dollars on each separately valued parcel tax defaulted on or after January 1, 1984. Section 4105 makes the tax collector the redemption officer of the county and requires application to redeem to be made to the tax collector.
Cal. Rev. & Tax. Code 4103 (redemption penalties at 1 1/2 percent a month)
Provides that redemption penalties are, beginning July 1st of the year of the declaration of tax default, charged on the declared amount of defaulted taxes at the rate of 1 1/2 percent a month to the time of redemption, plus, beginning July 1st of each subsequent year, 1 1/2 percent a month on that year's unpaid taxes, with the monthly penalty attaching after the close of business on the next business day where a month ends on a weekend or legal holiday.
Cal. Rev. & Tax. Code 4112 (extra fees once a notice of power to sell is recorded)
Requires the tax collector, when property subject to a notice recorded under section 3691.4 is redeemed, to collect in addition to the redemption amount the county's actual and reasonable costs of finding and noticing parties of interest, the recorder's fee for the rescission of the notice, and a fee of one hundred fifty dollars if redemption is within 90 days of the proposed sale date, plus reimbursement of notice or publication costs already incurred.
Cal. Rev. & Tax. Code 4217 to 4222 (installment plan of redemption)
Section 4217 lets any person elect to pay delinquent taxes in installments any time before 5 p.m. on the last business day prior to the date the tax collector obtains the power to sell. Section 4219 sets the election at payment of 20 percent or more of the redemption amount. Section 4218 provides the property is not subject to a power of sale and the right of redemption is not terminated while payments are made. Sections 4220 and 4221 set the yearly 40, 60, 80 and 100 percent steps, current-tax requirement, and 1 1/2 percent monthly interest on the balance. Section 4222 governs default on the plan.
Cal. Rev. & Tax. Code 4675 (claiming excess proceeds within one year)
Provides that any party of interest may file with the county a claim for the excess proceeds, in proportion to that person's interest held with others of equal priority at the time of sale, at any time prior to the expiration of one year following the recordation of the tax collector's deed to the purchaser, that the claim must be postmarked on or before the one-year expiration date, and that lienholders of record rank ahead of persons with title of record.
Cal. Rev. & Tax. Code 3725 (time limit on challenging a completed sale)
Provides that a proceeding based on alleged invalidity or irregularity of any proceedings instituted under the tax sale chapter can be commenced in court only if the person first petitioned the board of supervisors to rescind under section 3731 within one year of the date of the execution of the tax collector's deed, and the proceeding is commenced within one year of the board's determination.
Los Angeles County Treasurer and Tax Collector: secured property taxes
A county tax collector page showing how the statutory scheme is administered in practice, including that the first installment is due November 1 and becomes delinquent by the close of business on December 10, that unpaid taxes become defaulted on July 1, that a 15 dollar redemption fee is charged with additional penalties of 1.5 percent of the base tax per month, and that a Five-Pay Plan is available on residential or agricultural property less than five years in default.
Regional Variances
California delinquent property tax rules at a glance
Sale mechanism
Tax deed. The tax collector sells the property itself at public auction, not a lien or a certificate, and on receiving the full purchase price executes a deed to the purchaser without charge and records it immediately (Cal. Rev. & Tax. Code 3708, 3708.1). The deed conveys title free of all encumbrances existing before the sale, with listed exceptions (Cal. Rev. & Tax. Code 3712).
Delinquency dates
Two installments. The first half is due November 1 and delinquent at 5 p.m., or the close of business, whichever is later, on December 10 (Cal. Rev. & Tax. Code 2605, 2617). The second half is due February 1 and delinquent on April 10 (Cal. Rev. & Tax. Code 2606, 2618).
Penalty before default
A delinquent penalty of 10 percent attaches to each installment after its delinquency date (Cal. Rev. & Tax. Code 2617, 2618), plus a cost of up to 55 dollars, and no more than actual cost, once the second installment is delinquent (Cal. Rev. & Tax. Code 2621). The county sets the actual cost figure.
Time before sale
Five years or more after the property becomes tax defaulted, or three years or more for nonresidential commercial property, before the power to sell attaches (Cal. Rev. & Tax. Code 3691). A three year route also opens on request of a city, county, nonprofit organization, or a nuisance abatement lienholder.
Redemption period and clock
The clock starts at 12:01 a.m. on July 1, when unpaid taxes are declared in default by operation of law (Cal. Rev. & Tax. Code 3436). Tax-defaulted property may be redeemed until the right of redemption is terminated (Cal. Rev. & Tax. Code 4101), which happens at the close of business on the last business day prior to the commencement date of the tax sale (Cal. Rev. & Tax. Code 3707). There is no redemption after the sale.
Redeemer's charge
A monthly simple penalty, not an annual rate and not a bid-down rate. Beginning July 1 of the year of the declaration of tax default, 1 1/2 percent a month on the declared amount of defaulted taxes to the time of redemption, with a further 1 1/2 percent a month from July 1 of each subsequent year on that year's unpaid taxes (Cal. Rev. & Tax. Code 4103).
Other redemption costs
All prior year defaulted taxes, delinquent penalties and costs, redemption penalties, and a 15 dollar redemption fee per separately valued parcel (Cal. Rev. & Tax. Code 4102). After a notice of power to sell is recorded, add the county's notice and address-search costs, the rescission recording fee, 150 dollars if redeeming within 90 days of the proposed sale, and any publication costs already incurred (Cal. Rev. & Tax. Code 4112).
Notice to the owner
Published notice of impending default annually on or before June 8 (Cal. Rev. & Tax. Code 3351), certified mail notice of the proposed sale to parties of interest not less than 45 days nor more than 120 days before it (Cal. Rev. & Tax. Code 3701), and published notice of intended sale once a week for three successive weeks started at least 21 days before the sale (Cal. Rev. & Tax. Code 3702).
Where to redeem
The county tax collector, who is the redemption officer of the county; application to redeem is made to the tax collector (Cal. Rev. & Tax. Code 4105). Counties generally title the office Treasurer and Tax Collector, and section 4675 refers to the county treasurer-tax collector's office.
Surplus proceeds
Claimable. Any party of interest may file a claim with the county for excess proceeds at any time prior to the expiration of one year following recordation of the tax collector's deed to the purchaser, postmarked on or before that date (Cal. Rev. & Tax. Code 4675). Where proceeds exceed 150 dollars the county must mail notice within 90 days of the sale (Cal. Rev. & Tax. Code 4676).
Payment plan
An installment plan of redemption, known in county practice as the five pay plan. Elect by paying 20 percent or more of the redemption amount before 5 p.m. on the last business day prior to the date the power to sell attaches (Cal. Rev. & Tax. Code 4217, 4219). While payments are made the parcel is not subject to the power of sale and the right of redemption is not terminated (Cal. Rev. & Tax. Code 4218).
Frequently Asked Questions
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