What Happens If You Don’t Pay Property Taxes in Indiana?
Most pages on this subject tell you it “varies”. It does, but not as much as that suggests — Indiana law sets specific deadlines, and knowing which one applies to you changes what you should do next.
Owe Back Taxes? We Can Still Buy
Unpaid taxes are settled from the sale proceeds at closing. You do not need to clear them first.
No obligation. Happy to talk it through even if you are not selling.
How Long You Actually Have
Missing a payment does not put the house at risk straight away. What matters is the tax sale, and what happens after it.
Before The Tax Sale
Indiana property taxes are normally payable in two instalments, in May and November. A missed instalment adds penalties and interest, and the balance grows — but nothing happens to your ownership.
Unpaid amounts accumulate until the county certifies the parcel for a tax sale under Indiana Code 6-1.1-24. That usually takes considerably longer than one missed payment.
This period is where you have the most options and the least pressure.
After The Tax Sale
At the sale, what is sold is not your house — it is a certificate representing the tax debt. You still own the property, and you have a period to redeem it by paying what is owed.
How long that period lasts depends on which route the sale took, and the difference is substantial.
If nobody redeems within the period, the certificate holder can apply to the court for a tax deed, and that is when ownership actually changes.
The Redemption Periods, Precisely
Under Indiana Code 6-1.1-25-4:
✓One year from the date of sale — the standard period after a regular county tax sale
✓120 days where the certificate is sold to a qualified purchasing agency, or on the commissioners' track after the county acquires the lien
✓No redemption at all if the property is on the county auditor's vacant and abandoned property list
That last one is the trap. The statute is explicit: there is no right to redeem after a tax sale if the property is on that list. The safety net other owners rely on simply does not exist.
An Empty House Is In A Different Position
County auditors maintain a vacant and abandoned property list. A property on that list has no redemption period after a tax sale — the year that other owners get does not apply.
This catches out people who have inherited a house from a distance, moved away before selling, or had a rental sit empty while the taxes quietly built up. They assume they have a year to sort it out. They may have none.
If you own an empty Indiana property with tax arrears, this is the single most important thing on this page. Ask your county auditor whether the parcel is on that list, and ask in writing.
Related: selling a vacant house in Indiana and selling an inherited house.
Your Options, By Stage
What is realistic depends entirely on how far along the process has gone.
Behind, No Sale Scheduled
The simplest stage. Pay what you can, and speak to the county treasurer about the balance — counties can sometimes arrange payment terms before a parcel is certified for sale.
Ask for the current total in writing, because penalties and interest mean it is rarely the figure you remember.
Certified For Tax Sale
The parcel is on the list for an upcoming sale. Paying the full amount before the sale takes it off. This is a hard deadline, so find out the sale date.
Selling also works here, as long as it can close before the sale — the taxes get paid out of the proceeds.
Sold, Within The Redemption Period
You still own the house and can redeem it, but the amount is more than the taxes alone and rises over time. Get the exact figure from the county auditor.
Check which period applies to you — one year and 120 days are very different, and a vacant property may have neither.
You Can Sell A House With Back Taxes Owing
The Taxes Come Out Of The Proceeds
A common assumption is that arrears have to be cleared before a house can be sold. They do not. Unpaid property taxes are settled at closing from the sale proceeds, in the same way a mortgage is paid off.
The title company handles it. If the sale covers what is owed, the tax problem resolves itself as part of the transaction.
When It Is Worth Considering
Usually when catching up is not realistic, or when the arrears sit on a property you did not want in the first place — an inherited house, a rental that stopped working, a property in another town.
The trade-off: a cash offer is generally below what a prepared house would fetch listed. You are exchanging price for resolving it before the deadline. See how we work out an offer.
This is general information about Indiana law, not legal or tax advice — we are not attorneys or accountants. Your county auditor and treasurer hold the figures and dates for your parcel, and an attorney can advise on your position. Last checked against Indiana Code: 16 September 2026.
What Sellers Say About Working With YDL Homes
“My probate was complicated because it was Mom’s house. The whole process was very frustrating because the back porch was over the boundary, but they helped us get everything sorted out and even bought the land next door. We got what we needed to stop the foreclosure.”
“Derek bought my Dad’s house from me after he passed with all the stuff in it that Dad had hoarded over the years, and in the condition it was in. What a relief to get it sold without having to clear it out myself. I was actually nervous to even go in the house because of what I might find.”
“When I was diagnosed, we had a lot of challenges to move out but they helped us with a dumpster because there was a lot of stuff we needed to get rid of. We even stayed in our camper in the driveway for a few days after we moved out after we closed. They took away a lot of stress.”
Property Tax Questions Indiana Owners Ask
How long can you go without paying property taxes in Indiana?
Do I lose the house as soon as I miss a payment?
Can I sell if I owe back property taxes?
What if my property is on the vacant and abandoned list?
How much does it cost to redeem?
Does this have anything to do with mortgage foreclosure?
Two Calls Worth Making
Your county treasurer can tell you the current balance and whether the parcel has been certified for sale. Your county auditor can tell you the redemption deadline, the redemption amount, and whether the property is on the vacant and abandoned list. Both are free, and both are more useful than any website.
If selling turns out to be the sensible route, we will tell you what we would pay as it stands. If catching up is realistic, we will say so.
Call 317-747-2175 or use the form. We buy across Indiana, including Indianapolis, Hammond, Fort Wayne and the wider state.
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