A property tax bill that slips by a month or two can feel small. In Connecticut, it doesn’t stay small. Interest starts adding up right away, the town can put a lien on your house, and if the balance keeps growing, the town can eventually sell the property at a tax sale or foreclose on it. The good news: you usually have more options and more time than you think — as long as you act before the process runs its course.
This guide explains how delinquent property taxes work in Connecticut, what the tax sale and tax foreclosure process looks like, and how selling the house (including to a local cash buyer) can pay off the taxes and protect the equity you’ve built.
We’re a cash home buyer, not attorneys or tax advisors. Rules and fees vary by town, so always confirm details with your town’s tax collector and, if a sale or foreclosure is already scheduled, a Connecticut real estate attorney.
How fast do Connecticut property taxes add up?
Connecticut sets the interest on late property taxes by statute (Conn. Gen. Stat. §12-146). Towns charge 1.5% per month — 18% per year — calculated from the original due date, with a minimum interest charge of $2 per bill. Many towns give a short grace period (often one month), but once it passes, interest goes back to the due date. Not receiving a bill doesn’t excuse the tax or the interest.
In many Connecticut towns, real estate taxes are due in two installments (for example, July 1 and January 1). Miss a couple of installments and the interest alone can add hundreds or thousands of dollars to what you owe.
What happens if you keep falling behind?
Each town handles collections a little differently, but the general path looks like this:
- Delinquent notices and demands for payment. The tax collector mails reminders after the grace period ends.
- A tax lien on your property. Unpaid real estate taxes become a lien recorded on the town land records. A property tax lien generally has priority over your mortgage — which is why your lender pays close attention.
- Extra collection costs. Some towns issue tax warrants served by a state marshal, which add fees on top of the interest.
- A tax sale or tax foreclosure. If the balance still isn’t paid, the town can move to take the property.
How a Connecticut tax sale works
Under Conn. Gen. Stat. §12-157, before a tax sale the tax collector must send the owner three notices by certified mail at set intervals before the sale, and must also post and publish notice. At the auction, the property goes to the highest bidder — or to the town if no bid covers what’s owed.
After the sale, the deed is held for a six-month redemption period. During that window, the owner can get the property back by paying the taxes, interest and charges due at the time of the sale, plus 18% per year interest on the full price the buyer paid at auction. If the town has determined the property is abandoned, the redemption period can be as short as 60 days. Once redemption ends, the loss is permanent.
How a tax foreclosure works
Instead of a tax sale, some towns go to court and foreclose the tax lien (Conn. Gen. Stat. §12-181). The court sets a deadline to pay — the redemption period — and when it passes, title can transfer. For lower-value properties, a faster summary procedure is sometimes available to the town. Either way, a court date means it’s time to talk to an attorney right away. (Our guide to strict foreclosure and Law Day in Connecticut explains how court-ordered deadlines work.)
For a plain-English overview of the statutes, see Nolo’s summary: What Happens If I Don’t Pay Property Taxes in Connecticut?
What about your mortgage?
Because a tax lien comes ahead of the mortgage, lenders usually don’t let it go unpaid. If your taxes aren’t escrowed, your loan servicer may pay the overdue taxes and then bill you, add them to your loan balance, or set up an escrow account that raises your monthly payment. If you can’t repay the servicer, it can treat that as a default — which can lead to a mortgage foreclosure. If that’s where things are heading, read our guide to selling a house in pre-foreclosure in Connecticut.
Your options if you’re behind on property taxes
- Pay the balance or ask about a payment arrangement. Call your town tax collector early. Ask exactly what’s owed, what fees are coming, and whether any arrangement is available.
- Check your assessment. If your assessment looks too high, ask the assessor’s office about the appeal process and deadlines.
- Look into exemptions and credits. Connecticut offers some property tax exemptions and credits (for example, for veterans, and in many towns for older or disabled homeowners). Ask your assessor what you might qualify for.
- Refinance or borrow if your credit and income allow it.
- Sell the house. If the taxes are part of a bigger picture — an inherited house nobody lives in, a property that needs repairs you can’t afford, a rental that isn’t paying for itself — selling can clear the debt and let you keep what’s left.
Can you sell a house with a tax lien in Connecticut?
Yes. A tax lien doesn’t stop a sale — it just has to be paid off at closing. The closing attorney gets an exact payoff figure from the town, the back taxes, interest and fees are paid out of the sale proceeds, and the lien is released. Whatever is left after the taxes, any mortgage, and closing costs goes to you.
The key is timing. Every month adds 1.5% interest, and once a tax sale happens, the cost to get the property back jumps. Selling before a tax sale or court deadline is almost always the cleaner path.
Selling to a cash buyer vs. listing: an honest look
A cash sale isn’t the right fit for everyone, so here’s the trade-off plainly:
| Cash sale to Exceptional Home Solutions | Traditional listing | |
|---|---|---|
| Timing | Fair cash offer within 24 hours; close in as few as 7 days or on your timeline | Depends on market, showings and the buyer’s financing |
| Condition | We buy as-is — no repairs, no cleaning (we can help with the cleanout) | Buyers and lenders often expect repairs |
| Costs | No commissions, no hidden fees | Commissions and seller concessions are common |
| Price | A fair cash price for the house as it sits | Can be higher if the house shows well and you have time |
If you have plenty of time before any deadline and the house is in great shape, listing may net more. If the deadline is close, the house needs work, or you simply want certainty, a cash sale can make sense.
How selling to us works
- Tell us about the property — call (860) 815-8029 or request an offer online.
- Get a fair cash offer within 24 hours. Offers are free and come with no obligation.
- You choose the closing date. We close through a trusted local attorney, who pays off the back taxes and any liens from the proceeds.
See the full step-by-step process. We’re based in Glastonbury and have been helping Connecticut homeowners since 2021, buying houses in Hartford, New Haven, Waterbury, Bridgeport, New Britain and towns across the state. If you inherited a house with unpaid taxes, our inherited house and probate guide may help too.
Frequently asked questions
What is the interest rate on late property taxes in Connecticut?
1.5% per month (18% per year), calculated from the original due date, with a $2 minimum per bill, under Conn. Gen. Stat. §12-146.
Can I lose my house for unpaid property taxes in Connecticut?
Yes. The town can sell the property at a tax sale or foreclose the tax lien in court. After a tax sale, the owner generally has six months to redeem (60 days for property found to be abandoned) by paying the amount owed plus 18% annual interest on the auction price.
Can I sell my house if there’s a tax lien on it?
Yes. The lien is paid off from the sale proceeds at closing, and you keep the remaining equity after the taxes, any mortgage and closing costs.
Will you buy a house with back taxes that also needs repairs?
Yes. We buy houses in as-is condition anywhere in Connecticut, and the back taxes are handled at closing through the attorney.
How quickly can you close?
In as few as 7 days, or on the date you choose — useful if a tax sale or court deadline is coming up.
Don’t wait for the next notice
Every month of delay costs 1.5% in interest and moves you closer to a tax sale. Whether you pay the town, work out an arrangement, or sell, the earlier you act, the more of your equity you keep. If selling might be the right move, get your free, no-obligation cash offer or call Exceptional Home Solutions at (860) 815-8029.
