Back taxes · TN & NC

What happens if I have back taxes on land?

The short answer

Unpaid property taxes keep growing with interest and penalties, and if they stay unpaid long enough the county can take legal action and sell the land to collect what's owed. The good news is that you can usually still sell land with back taxes. In most sales, the past-due taxes are paid off from the sale proceeds at closing, so you don't have to pay them out of pocket first.

By Esther & Luke Mbongo, owners of Good Shepherd Land Co. · Updated November 5, 2026

How back taxes add up

Property taxes are billed every year by the county (and sometimes the city). In Tennessee they're collected by the county trustee, and in North Carolina by the county tax collector. Once a bill is past due, interest and penalties are added. Each year that goes unpaid adds another bill on top, so the total can grow quickly.

What can happen if they stay unpaid

Counties have legal ways to collect delinquent property taxes. If taxes go unpaid for long enough, the county can file a lawsuit or foreclosure and eventually sell the property at a tax sale. Owners may have a limited time to redeem the property after a sale by paying what's owed plus extra costs. The exact steps and deadlines depend on your state and county, so don't wait to find out where your land stands.

How to find out what you owe

Call or visit the website of the county trustee (Tennessee) or tax collector (North Carolina) for the county where the land is. Most can tell you the total owed, including interest and penalties, and the date that amount is good through. Have the parcel number (APN) or property address ready.

Can I sell land with back taxes?

Yes, and it's common. When you sell, the title company or closing attorney gets a payoff amount from the county and pays the back taxes from the sale proceeds at closing. You receive the rest. The same usually applies to other liens on the land.

When we make an offer, we look up the taxes owed and factor them into the numbers. Then we show you what you'll take home after they're paid, with no surprises at closing.

Your options

Pay the taxes and keep the land, if you plan to use it. Many counties offer payment arrangements, so ask.
Sell the land and let the back taxes be paid at closing. This stops the bills from growing and turns land you don't use into cash.
Do nothing. The amount keeps growing, and you risk losing the land at a tax sale.

Land with back taxes you'd like to sell?

We buy land with past-due taxes in Tennessee and North Carolina. Tell us about it and we'll send a fair cash offer, usually within 48 hours, showing what you'd take home.

Get Your Cash Offer Call (931) 494-9264

This article is general information, not legal or tax advice. Every property and family situation is different. For advice about your situation, talk with a real estate attorney or tax professional.