Falling behind on property taxes can sneak up on you. Maybe your taxes aren’t escrowed with your mortgage, maybe the house is paid off and money got tight, or maybe you inherited a house that came with a pile of unpaid bills. Whatever the reason, back taxes in Connecticut grow fast, and the town has strong tools to collect.
The good news: you can still sell a house with back taxes or a tax lien. This guide explains how Connecticut tax liens work, what happens if they’re not paid, and how selling can protect the equity you’ve built.
This article is general information, not legal advice. For your specific situation, talk to a Connecticut real estate attorney or your town’s tax collector.
How Back Property Taxes Work in Connecticut
The grace period and 18% interest
Connecticut gives taxpayers a one-month grace period. A bill due July 1, for example, can be paid through August 1 without interest. After that, under Conn. Gen. Stat. § 12-146, the unpaid tax is charged interest at 18% a year, or 1.5% a month, going back to the original due date. Any part of a month counts as a full month.
So if you pay one day after the grace period ends, you already owe two months of interest. On a $6,000 yearly tax bill, that adds up quickly.
The tax lien
Under state law, each property’s taxes are a lien on that property. Towns can continue that lien by recording a certificate on the land records (Conn. Gen. Stat. § 12-175), and the lien takes priority over almost everything else, including your mortgage. A recorded lien can stay valid for up to 15 years, and interest keeps growing the whole time.
Some towns sell their liens
Connecticut law (§ 12-195h) lets towns sell their tax liens to private companies. When that happens, the company steps into the town’s shoes. It can charge the same interest, add collection costs and attorney’s fees, and eventually foreclose. The law does require the company to send you a notice within 60 days of buying the lien and to wait at least a year after buying it before filing a foreclosure (for liens assigned on or after July 1, 2022). Those fees can add up, so don’t ignore a letter from a lien company.
What Happens If Back Taxes Aren’t Paid
Towns and lien holders have two main ways to collect.
1. Tax lien foreclosure
The town or lien holder can sue in Superior Court to foreclose the lien (§ 12-181). The court can set a date by which you must pay, or order the house sold. For lower-value homes, Connecticut also allows a faster “summary” foreclosure process (§§ 12-182 to 12-191).
Important: Connecticut’s free Foreclosure Mediation Program, which helps many people behind on their mortgages, does not cover tax lien foreclosures. The Judicial Branch says so directly. (For mortgage cases, see our guide to stopping foreclosure in Connecticut.) That means fewer built-in pauses and less time to work something out.
2. Tax sale
A tax collector can also sell the property at a public auction for the unpaid taxes (§ 12-157). After the sale, the owner generally has six months to redeem the property. That window can be shorter, just 60 days, if the property is considered abandoned under the town’s rules.
To redeem, you pay the taxes, interest, and charges that were owed at the time of the sale, plus 18% a year on the winning bidder’s full purchase price. If no one redeems in time, the buyer’s deed is recorded and the buyer becomes the owner.
Your Options If You Owe Back Taxes
Pay or set up a plan with the town
Call your town’s tax collector and get an exact payoff, including interest and fees. Ask whether they offer a payment arrangement. Policies vary by town. If the lien was sold to a company, they’re required to give you a payoff statement.
Look into EMAP
If the house is your primary residence and you fell behind because of a hardship like job loss or illness, CHFA’s Emergency Mortgage Assistance Program can help with some non-mortgage costs, including unpaid property taxes that aren’t escrowed. It’s a deferred loan, not a grant. Check chfa.org for details.
Sell the house and pay the taxes at closing
This is often the cleanest fix, especially if the taxes are years behind or the house needs work you can’t afford. Here’s how it works:
- The title search shows every tax lien on the property.
- At closing, the back taxes, interest, and fees are paid from the sale price, along with any mortgage.
- Whatever is left over is yours.
You don’t need to pay the taxes first. You also don’t need to fix the house first.
Why timing matters so much
Every month you wait, 1.5% interest is added, plus any lien company fees. If a lien foreclosure or tax sale runs its course, you can lose the house and much or all of your equity. A sale before that point keeps the equity in your pocket.
Why Cash Buyers Help With Tax Lien Houses
Houses with tax liens are often older, vacant, inherited, or in need of repairs, which makes a regular listing harder. Buyers getting a mortgage may need repairs done first, and their lenders may slow things down. A cash buyer like True Home Offers can:
- Buy the house as-is, with no repairs or cleanup.
- Work with the town, the lien holder, and the title company to get exact payoffs.
- Close quickly enough to beat a redemption deadline or a court date, when the timeline allows.
- Charge no agent commissions.
FAQ
Can I sell my house in Connecticut if it has a tax lien? Yes. The lien is paid off from the sale proceeds at closing, and you keep what’s left after the taxes, mortgage, and closing costs.
How much interest do Connecticut towns charge on late property taxes? State law sets it at 18% a year, which is 1.5% a month, counted from the original due date. Any part of a month counts as a full month.
How long do I have to get my house back after a Connecticut tax sale? Usually six months from the date of the sale, or 60 days if the property is considered abandoned. You must pay what was owed at the sale plus 18% a year on the buyer’s purchase price.
Does Connecticut foreclosure mediation cover tax liens? No. The Foreclosure Mediation Program covers mortgage foreclosures, not tax lien or condo association lien foreclosures.
Get a Fair Cash Offer for Your Connecticut House
True Home Offers buys houses with back taxes and tax liens across Connecticut, including in Bridgeport, Hartford, and New Britain. We can give you a no-obligation cash offer and handle the payoffs at closing. Learn more on our foreclosure help page.
Call (203) 297-8734 or get your cash offer online. There’s no pressure, and you’re never obligated to accept.