Behind on Property Taxes in Tennessee — Your Options Before the Tax Sale
Property-tax delinquency is the quietest kind of trouble. There is no monthly statement getting more aggressive, no calls from a collector, no certified envelopes — just an annual bill that did not get paid, and a balance that compounds quietly in the background while you handle the rest of your life.
Here is the good news: if you have not yet received notice that your Tennessee parcel is in a Chancery Court tax sale, you still have meaningful options — and they are mostly free or low-cost. This page is for the owner who knows the taxes are behind, suspects the trouble is real, and wants to handle it before it escalates.
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The Tennessee Property-Tax Calendar
Tennessee property taxes are due the first Monday in October each year. You have until the end of February to pay without penalty. On March 1 of the following year, any unpaid balance is officially delinquent, and Tenn. Code § 67-5-2010 begins compounding interest — generally about 1.5 percent per month, which works out to roughly 18 percent per year. The county trustee continues accepting payments after delinquency, but the longer the balance sits, the heavier it gets.
The Path From Delinquency to Tax Sale
- Year 1 delinquent. Penalty plus interest accrues monthly. The trustee may send reminder notices. No legal action yet.
- Years 2 to 3 delinquent. The trustee continues collection efforts. Counties have discretion about when to refer to the delinquent tax attorney.
- Referral to the delinquent tax attorney. The attorney files suit in Chancery Court. You will receive formal notice of the lawsuit. This is the inflection point — most options become more constrained from here.
- Chancery Court orders the sale. The parcel is auctioned. The redemption clock starts at the date of the order confirming the sale, on the sliding scale under § 67-5-2701.
Your Options Before the Chancery Suit Is Filed
- Call the county trustee directly. The trustee handles delinquent-tax accounting and has substantial discretion on payment arrangements. In Sullivan County, Washington County, and Hawkins County, the trustee's office is the first call. Many counties have informal or formal partial-payment arrangements. Asking costs nothing.
- Free counseling. THDA is the HUD-approved Tennessee housing counseling agency. They will not lose your home and they will not pressure you. Legal Aid Society of Middle Tennessee provides free legal help to homeowners who qualify.
- Sell now — the cleanest option most owners overlook. A regular sale (cash or financed) before chancery court gets involved pays off the back taxes at closing and lets you walk away with the rest of the equity. No court, no redemption math, no surprises. This is what a cash sale with us looks like at this stage.
- Refinance or HELOC. If your credit and equity support it, refinancing into a new mortgage or pulling a home-equity line of credit large enough to pay off the taxes is sometimes feasible. Compare the rate to the 18 percent the back taxes are costing you.
Your Options After the Chancery Suit Is Filed
Once the suit is filed but before the sale, you can still settle with the delinquent tax attorney to dismiss the action (terms vary by county and by what is owed). You can also still sell the property — a fast cash sale that closes before the auction is the cleanest version, because the back taxes get paid off at closing and the chancery case becomes moot.
Talking to a Tennessee real estate attorney is wise at this stage. The chancery procedure is technical, and small procedural points can matter. Free help through the Legal Aid Society of Middle Tennessee is available if you qualify.
Your Options After the Chancery Suit Is Filed
The whole geometry of the situation changes based on how early you act. Before the chancery suit: you pay back taxes plus interest at the trustee. After the suit but before the sale: you also pay the delinquent tax attorney's fees and court costs. After the sale: you pay the purchaser's bid plus 12% per annum on that bid, plus all of the above. Every step in the process adds dollars to what it takes to make the problem go away. The earliest action almost always preserves the most equity.
Sell Your House in Tennessee – Get a Cash Offer Now
Selling your home doesn’t have to be hard, we offer a fast, fair cash offer with no repairs, commissions or stress. Contact us today to get started and see how easy it can be to sell your house on your terms.
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Fill In This Form To Get Your No-Obligation All Cash Offer Started!