Unpaid property taxes run on a slower clock than a missed mortgage payment, and that is exactly why they catch Southern California owners off guard. The county does not send a Notice of Default. It adds penalties, waits five years, and then gains the power to sell the house at auction. The table is the whole clock, from the first missed installment to the day the right to redeem ends.
| When | What happens | The rule |
|---|---|---|
| December 10 and April 10 | Each unpaid installment takes a 10 percent penalty | Revenue and Taxation Code 2617 |
| June 30 | Still unpaid, the taxes are declared in default | The county's tax default declaration |
| July 1 onward | A redemption penalty of 1.5 percent a month accrues on the defaulted amount | Revenue and Taxation Code 4103 |
| Five years after default | The tax collector gains the power to sell the property | Revenue and Taxation Code 3691 |
| The last business day before the sale | The right of redemption ends at close of business | Revenue and Taxation Code 3707 |
| Within one year after the tax deed records | The former owner may claim any excess proceeds | Revenue and Taxation Code 4675 |
The five years are the part that lulls people. Eighteen percent a year in penalties, on top of the taxes themselves, turns a two year lapse into a balance that is hard to redeem in one payment. Meanwhile the county's lien sits ahead of every mortgage on the house, which is why a lender will often pay the taxes itself and add the advance to what you owe it.
That second point matters more than it sounds. Once the lender advances the taxes, the unpaid balance is part of the mortgage default, and the mortgage foreclosure clock, the faster one, starts running on money that began as a tax bill.
Two foreclosures, one house
A tax default and a mortgage default are separate proceedings with separate deadlines. The county's is measured in years and ends at a tax sale. The lender's is measured in months and ends at a trustee's sale, and it can be triggered by the tax default itself, because nearly every deed of trust lets the lender pay delinquent taxes and treat the advance as part of the debt. Civil Code 2924c(a)(1) counts taxes and other sums the lender has advanced in the amount you must pay to reinstate. Our guide to the Notice of Default covers that faster clock.
"Ultimately, our goal is to ensure proper noticing, but also being engaged with property owners on the alternatives and resources available to assist them with their status."
Matthew Jennings, Riverside County Treasurer-Tax Collector, in Riverside County Publishes Notice of Impending Power to Sell Tax Defaulted Property, May 2024
Redeeming, and the plan that holds the sale off
Tax-defaulted property may be redeemed until the right of redemption is terminated, under Revenue and Taxation Code 4101, and section 3707 sets that termination at the close of business on the last business day before the sale, reviving it if the property does not sell. Redemption means paying the defaulted taxes, the penalties, and the fees in full. Counties also offer an installment plan of redemption that keeps the property off the sale list while payments are current; Riverside County's notice for its 2024 list, for example, set June 30 as the last day to open one before that year's power to sell attached.
Redeem, pay in installments, or sell: what each requires
| Route | What it takes | When it stops being available |
|---|---|---|
| Redeem in full | All defaulted taxes, the 10 percent penalties, the 1.5 percent monthly redemption penalty, and fees | Close of business on the last business day before the tax sale (RTC 3707) |
| Installment plan of redemption | An opening payment and a current plan with the county tax collector | Before the power to sell attaches; check the county's published deadline |
| Sell and pay through escrow | A buyer whose price covers the tax payoff and the mortgage payoff | Until redemption ends, and until the trustee's sale if the lender is also foreclosing |
| Let it go to the tax sale | Nothing | Excess proceeds may be claimed within one year of the tax deed (RTC 4675) |
What comes back after a tax sale
If the property sells for more than the taxes, penalties, and costs, Revenue and Taxation Code 4675 lets any party of interest file a claim for the excess proceeds within one year after the tax collector's deed is recorded, postmarked by that date. Lienholders of record are paid first in order of priority, then the person who held title before the deed. The county holds the money; it does not mail it unbidden.
Which office, in each county
| County | Office that collects, sells, and pays excess proceeds | Cities in the service area |
|---|---|---|
| Riverside | Riverside County Treasurer-Tax Collector, countytreasurer.org, 951-955-3985 | Temecula, Murrieta, Menifee, Wildomar, Corona, Riverside |
| San Diego | San Diego County Treasurer-Tax Collector, sdttc.com | Oceanside, Carlsbad, Vista, San Marcos, Escondido, Fallbrook |
| Orange | Orange County Treasurer-Tax Collector, ttc.ocgov.com | Huntington Beach, Anaheim, Irvine, Santa Ana, Mission Viejo |
Selling with a tax lien on the house
A tax lien does not stop a sale. Escrow orders a payoff from the county tax collector alongside the lender's demand and pays both at closing, and the buyer takes title clear. What the lien does is shrink the equity every month it sits, at the county's rate. We buy houses as-is for cash across Southern California, from the Temecula Valley and Riverside County to Orange County and North County San Diego, with the tax payoff handled inside escrow. Get a no-obligation cash offer and see what the house nets after the county is paid.
Frequently Asked Questions
Who do I pay to redeem tax-defaulted property in Riverside, San Diego, or Orange County?
The treasurer-tax collector of the county the property is in. For Temecula, Murrieta, or anywhere in Riverside County that is the Riverside County Treasurer-Tax Collector at countytreasurer.org or 951-955-3985. For Oceanside, Escondido, and the rest of North County it is the San Diego County Treasurer-Tax Collector at sdttc.com, and for Huntington Beach or Irvine the Orange County Treasurer-Tax Collector at ttc.ocgov.com. Each publishes the redemption amount, which includes the penalties and fees through the month you pay.
Can the county really sell my house over property taxes?
Yes. Revenue and Taxation Code 3691 gives the tax collector the power to sell residential property that has been tax-defaulted for five years or more and remains unredeemed. The sale is a public auction, and the right to redeem ends at close of business on the last business day before it.
How much do the penalties add?
A 10 percent penalty attaches to each installment unpaid after its delinquency date under Revenue and Taxation Code 2617, and once the taxes are in default a redemption penalty of 1.5 percent a month accrues under section 4103 from July 1 of the year of the default. Over a year that is 18 percent on the defaulted amount, before fees.
Does a tax default affect my mortgage?
Usually yes. Deeds of trust let the lender pay delinquent taxes to protect its lien and add the advance to the loan. Civil Code 2924c(a)(1) includes such advances in the amount required to reinstate, so an unpaid tax bill can become part of a mortgage default and start the faster foreclosure clock.
About Property Tax Default in California
- Revenue and Taxation Code 3691, the power to sell
- Revenue and Taxation Code 4103, redemption penalties
- Revenue and Taxation Code 4675, excess proceeds
- Riverside County Treasurer-Tax Collector
- San Diego County Treasurer-Tax Collector
- Orange County Treasurer-Tax Collector
Sources: Revenue and Taxation Code 2617, 3691, 3707, 4101, 4103, 4675, Civil Code 2924c, County of Riverside, May 2024, Riverside County TTC, San Diego County TTC, Orange County TTC