Sell a house with unpaid property taxes in Illinois.

Unpaid taxes become delinquent after the installment due dates and start to carry interest. The taxes, with their penalties, interest, and costs, are a first lien on the property, ahead of a mortgage or any other lien.

The county collector then asks the circuit court for a judgment and order of sale. In counties with fewer than 3,000,000 people, which is every Illinois county except Cook, that application is generally made within 90 days after the second installment due date. Cook County has its own schedule.

After the judgment, the county holds its annual tax sale. What's sold is the tax debt. A tax buyer pays your taxes to the county and bids the penalty percentage they'll charge you to pay them back; the lowest penalty bid wins, and the Code caps the bid. The buyer gets a tax certificate. You still own the house and can still live in it.

Any owner or person with an interest in the property has the right to redeem it from the sale. For tax certificates issued on or after July 10, 2026, the Code sets the redemption period at 3 years from the date of the tax sale. It's 1 year if, on the sale date, the property is vacant non-farm land, a building with 7 or more residential units, or commercial or industrial property. Certificates issued before that date follow the rules that were in place then, so ask the county clerk which period applies to yours.

You redeem by paying the county clerk, not the tax buyer. The amount is the certificate amount plus a penalty that steps up every six months from the sale date, plus costs and any later taxes the buyer paid. The Code's own notice to owners says: "Check with the County Clerk for the exact amount you owe before redeeming," and "The longer you wait, the more expensive it will be to redeem and prevent the loss of your property."

Two notices should reach you. Within 4 months and 15 days of the sale, the tax buyer must deliver a notice to the county clerk, which the clerk mails to the person the taxes were last assessed to, stating that the taxes were sold and the date your right to redeem expires. Then, between 3 and 6 months before the redemption period ends, the buyer must give notice to the owners, the occupants, and other interested parties that a petition has been filed in court.

A tax buyer can file a petition for a tax deed in the last 6 months of the redemption period, but not in the last 3. If the period expires with no redemption, the buyer has to prove to the court that the notices were given and the later taxes were paid, and the Code tells the court to insist on strict compliance with the notice rules.

For certificates issued on or after July 10, 2026, the court doesn't simply hand over a deed. It orders a judicial tax deed auction, held within 120 days of the order. Bidding starts at a minimum bid made up of the tax deed judgment amount, interest, and the costs of the sale, and the property goes to the highest bidder. The notice of the auction is mailed to the owner and published for at least three consecutive weeks.

If the winning bid is more than the minimum bid, the extra money is surplus. The Code says the owner at the time of the sale is entitled to it: it's deposited with the county treasurer, the treasurer sends a notice, and the owner can file a claim with the treasurer or the court within 3 years of the date on that notice. If nobody bids the minimum, the tax buyer gets the deed and the Code presumes there's no surplus.

Once a tax deed issues, the court can put the new owner in possession, and the Code makes the deed hard to undo: it can be challenged only by appeal or on a short list of grounds, such as proof the taxes were paid before the sale. For tax deeds under the older rules, the Code gives a former owner a claim against the county's surplus equity fund or indemnity fund in some cases. Those are questions for a lawyer.

You can sell at any point while you still own the house, which includes the whole redemption period. In a sale, the title company gets the redemption figure from the county clerk and the current-year taxes from the treasurer, and they're paid at closing out of the price, along with any mortgage and other liens. What's left is yours.

Selling isn't the only way out, and it isn't always the best one. If you can redeem, you keep the house. If you can't, then for newer tax certificates the Code sends the house to an auction where any surplus above the minimum bid belongs to you. A sale before that point gets you the price in the contract, on a date you choose, instead of whatever an auction brings later. Which is better depends on the house, the amount owed, and how much time is left, and that's a conversation to have with a lawyer before you sign with any buyer, us included.

The honest trade-off on our side: a cash offer is usually lower than what a repaired, listed house would bring. If the house is in good shape and there's time, listing it may leave you with more.

Two county offices have the facts about your property. The county treasurer (the collector) can tell you which years are unpaid and whether they've been sold. The county clerk can tell you the redemption amount and the date your right to redeem expires. The Code's own notice adds one more: "Contact the U.S. Department of Housing and Urban Development (HUD) to find local housing counselors in your area."

Ask the treasurer and the assessor, too, whether you qualify for an exemption, a deferral, or a payment plan your county offers. We don't know your county's programs and can't apply for them for you. If the mortgage is behind as well as the taxes, our pages on being behind on the mortgage and selling a house in foreclosure cover that side.

It starts with the address, which tax years are unpaid, and any notice you've received. We walk through once. You don't repair, clean, or empty anything. If we can make an offer, it's in writing: our name, the price, what stays, who pays which closing costs, and the closing date.

Take it to a lawyer; we recommend it. The title company orders the redemption figure and the payoffs and shows every number on the settlement statement before you sign. If the numbers don't cover what's owed, or the redemption deadline is too close for a closing, we'll say so instead of guessing.