What Happens If You Don't Pay Property Taxes in Memphis?
Quick Answer
If you don't pay property taxes in Memphis, interest of 1.5% per month starts building on the unpaid balance. City of Memphis taxes turn delinquent on September 1, and Shelby County taxes turn delinquent on March 1. Lawsuits and legal fees can follow, and the house can eventually be sold at a public tax sale. After that sale, the redemption window ranges from one year to as little as 30 days. If you cannot catch up, selling to a cash buyer like buyerhouse before the sale lets the title company pay the taxes at closing so you keep your remaining equity.
Key Summary
- Memphis homeowners get two tax bills, one from the City of Memphis and one from Shelby County, and each bill has its own delinquency date.
- Unpaid balances grow by 1.5% per month, and lawsuit charges can be added after a year.
- Shelby County tax sales now run online, and the redemption period can be one year, 90 days, or 30 days.
- You can catch up with partial payments, a payment plan of up to 24 months, or tax relief programs if you qualify.
- Selling before a tax sale lets the title company pay the taxes at closing, so you keep your equity.
Property taxes in Memphis catch many homeowners off guard. The city and the county each send a bill, and each bill follows its own calendar. If you miss one, the balance starts growing right away.
This guide explains what happens if you don't pay property taxes in Memphis and how a Shelby County tax sale works. It also covers what you can do before things get that far. Finally, it shows when selling the house is the smartest way to protect your equity.
How Property Taxes in Memphis Work
Memphis homeowners pay two separate property tax bills each year. The City of Memphis sends one, and Shelby County sends the other. The Shelby County Assessor sets the value of your home, and each government then applies its own tax rate.
For homes, the assessment is 25% of the appraised value, according to the City of Memphis Treasury. The Assessor reappraises property every four years. Your bill equals the tax rate applied to every $100 of assessed value.
The City can also add fees to your tax bill. These include weed cutting, anti-neglect charges, demolition and board-up, sidewalk installation, and sanitation. As a result, an unresolved code violation can quietly turn into a tax problem.
The two bills run on different schedules. Here are the key dates from the Shelby County Trustee:
| Taxing authority | When taxes become delinquent | Interest after that date |
|---|---|---|
| City of Memphis | September 1 | 1.5% per month |
| Shelby County | March 1 (bills are due the first Monday of October) | 1.5% per month |
| Bartlett | March 1 | 1.5% per month plus a 5% penalty in the first month |
| Collierville | March 1 | 1.5% per month |
This year, Shelby County bills are due Monday, October 5, 2026. You can pay them without extra charges through the last day of February, per the Trustee payment deadlines page. City of Memphis bills, however, turn delinquent after August 31 each year.
What Happens When You Don't Pay Property Taxes in Memphis?
The process moves in stages, but interest starts on the first day a bill is delinquent. Here is the timeline the City of Memphis Treasury publishes for real estate taxes:
| Stage | What happens |
|---|---|
| Delinquent date | Interest of 1.5% of the tax owed is added on the first of each month. |
| Lawsuit | State law requires the Trustee to file suit to collect delinquent real estate taxes. The City says it files in Chancery Court once taxes are 17 months delinquent. |
| Default judgment | The City files an order of default judgment after real estate taxes are more than 2 years delinquent. |
| Subject to sale | The City says a property becomes subject to a tax sale after 3 years of delinquency. |
| Tax sale | The Chancery Court Clerk and Master sells the property at an online public auction. |
| Redemption | The previous owner may buy the property back for a limited time. |
Legal fees add up quickly. The Trustee notes that taxes delinquent for one year or more may carry lawsuit charges and other legal fees. Also, the Trustee applies payments on delinquent taxes to charges first, then to interest, and only then to the base tax. So an early payment may not shrink the base tax right away.
Your mortgage company may step in as well. If your taxes are escrowed, the servicer pays the bill. If they are not, the servicer can advance the money and add it to your loan balance, which Nolo explains for Tennessee. In that case, back taxes can lead to a foreclosure. Read our guide to facing foreclosure in Memphis or see what to do when you are late on mortgage payments.
How a Shelby County Tax Sale Works
Since April 2024, the Chancery Court Clerk and Master has held Shelby County tax sales online through ZeusAuction, according to the county tax sale page. The properties appear on ZeusAuction 30 days before the auction opens. Notices also run in the Memphis Daily News, per the Trustee.
The sale is not final right away. A Chancellor must sign an order confirming it, and the Trustee says that order is entered within 45 business days. After that, the property becomes eligible for redemption.
The county itself often ends up as the buyer. An Action News 5 investigation found that of more than 8,000 properties sold at tax sales from 2016 to 2022, Shelby County ended up owning nearly 70 percent. Properties that nobody redeems can then move to the Shelby County Land Bank.
How Long Do You Have to Redeem Your Home After a Tax Sale?
Tennessee shortened redemption periods in 2016. Now the length depends on how many years the taxes went unpaid, per the Shelby County Trustee:
| Years of delinquency | Redemption period |
|---|---|
| 3 years or less | 1 year |
| 4 years or more | 90 days |
| Vacant and abandoned property | 30 days |
| IRS lien on the property | 120 days from the sale |
A property counts as vacant and abandoned only after it is inspected at least three times over two months. To redeem, you file a Motion to Redeem in Chancery Court and pay the final bid plus interest. The purchaser gets the bid back with up to 12% annual interest, and the Trustee's office does not handle the process. In fact, the Trustee recommends hiring an attorney.
If the property sells for more than the minimum bid, owners and lien holders can claim the extra money. The Chancery Court Clerk keeps the details. Even so, homeowners have lost houses over surprisingly small balances. Action News 5 reported on a man who inherited his mother's house and her tax debt. His home went to auction when the back taxes reached nearly $5,000.
If you inherited a house, our guide on how to sell an inherited house in Memphis before probate ends explains your options.
Ways to Catch Up on Back Property Taxes in Memphis
Catching up on delinquent property taxes in Memphis is always worth exploring first. Each option below has limits, so match it to your situation.
Pay What You Can Right Away
The Trustee accepts partial payments. On delinquent taxes, however, the money goes first to court and miscellaneous costs, then to interest, and finally to the base tax, per the Trustee FAQ. Paying sooner still limits how much interest builds.
Ask About a Payment Plan
The Trustee offers written payment plans of up to 24 months. To qualify, the property must be scheduled for a current tax sale, and the plan must include every delinquent year. Payments are due by the 20th of each month, and interest and fees keep running, as the payment arrangements page explains.
Check Tax Relief and Tax Freeze Programs
Homeowners who are 65 or older, disabled, or disabled veterans may qualify for state-funded tax relief. The Trustee lists an income limit of $37,530 for elderly and disabled applicants. Relief covers both city and county taxes and works as a rebate. Seniors can also apply for a tax freeze. Learn more from the Tennessee Comptroller, and call the City Treasury at (901) 522-1111 for city help.
Appeal Your Assessment
If you think your home is overvalued, you can appeal to the Shelby County Board of Equalization. The City notes that you must still pay the undisputed amount before the delinquent date to avoid late fees.
Should You Sell Your House When You Owe Property Taxes in Memphis?
Sometimes catching up on property taxes in Memphis is not realistic. The balance may cover several years, or the house may need repairs you cannot afford. In that case, selling can protect the equity that a tax sale would put at risk.
Unpaid property taxes are a lien on the house, so they must be paid before the title can transfer. That rule applies to every home with delinquent property taxes in Memphis. Usually, the title company pays the balance from your sale proceeds at closing, and you keep what remains. If the title has other surprises, read about common title issues in Memphis.
How Your Options Compare
Here is how your main options compare:
| Option | Speed | Good fit when |
|---|---|---|
| Pay in full | Immediate | You have the cash and want to keep the house |
| Payment plan | Up to 24 months | The property is scheduled for a tax sale and you have steady income |
| List with an agent | Usually 45 to 90+ days | The house is in good shape and you have time |
| Sell to buyerhouse as-is | As fast as 7 days, or on your date | A deadline is close, the house needs work, or you want out |
A Simple Example
Consider a simple example. Your home is worth $140,000, you owe $60,000 on the mortgage, and back taxes plus interest total $8,000. A sale before the tax sale leaves roughly $72,000 before other costs. A tax sale could put that equity at risk. Your numbers will differ, so treat this only as an illustration.
Not sure where you stand? Call buyerhouse at (901) 979-9929 for a free, no-obligation cash offer and a straight answer about your options.
Equity matters here. If you owe more than the house is worth, read about low or negative home equity. You can also learn how selling a house as-is in Memphis works.
How buyerhouse Buys Memphis Homes With Back Taxes
buyerhouse is a local, family-led cash buyer. We buy houses with back property taxes in Memphis and in any condition across Memphis, Bartlett, Cordova, and Collierville. There are no fees, no commissions, and no repairs, and we pay all closing costs.
The process is short:
- Call (901) 979-9929 or fill out the form so we can learn about the house and the tax balance.
- An acquisitions manager presents your cash offer within 24 hours.
- After you accept, we send the offer for e-signature, and a field manager walks the property within 48 hours.
- You pick the closing date, which can be as fast as 7 days, and the title company pays the back taxes from the proceeds.
See every step on our how it works page, read our reviews, or browse the FAQ. Owners of problem rental properties and houses that need repairs are welcome too.
Frequently Asked Questions
When are property taxes in Memphis due?
Shelby County property taxes are due the first Monday of October and can be paid without extra charges through the last day of February. They become delinquent on March 1. City of Memphis taxes become delinquent on September 1, so you have two separate deadlines to track.
How much interest do you pay on late property taxes in Memphis?
Both the City of Memphis and Shelby County add interest of 1.5% of the tax owed for each month the bill is delinquent, which works out to 18% per year. Bartlett adds a 5% penalty in the first month on top of the interest. Lawsuit charges and legal fees can also be added.
How long can you go without paying property taxes in Memphis?
There is no safe amount of time, because interest starts right away. The City of Memphis says it files a lawsuit after real estate taxes are 17 months delinquent and that a property becomes subject to a tax sale after three years. The Trustee must also file suit to collect delinquent taxes, so a lawsuit can come sooner.
Can you sell a house with unpaid property taxes in Memphis?
Yes. Unpaid property taxes are a lien on the house, so the balance has to be paid before the title transfers. In most sales, the title company pays the taxes from the sale proceeds at closing, and the seller keeps what is left.
What is the redemption period after a Shelby County tax sale?
It depends on how long the taxes were delinquent. The Shelby County Trustee lists one year for three years of delinquency or less, 90 days for four years or more, and 30 days for vacant and abandoned property. If the IRS holds a lien, the period is 120 days from the sale.
Can you get a payment plan for delinquent property taxes in Shelby County?
Yes, in some cases. The Trustee offers written payment plans of up to 24 months, but the property must be scheduled for a current tax sale and every delinquent year must be included. Interest and fees keep accruing until the balance is paid in full.
Does a tax relief program erase my property tax bill?
No. The Tax Relief Credit is a state-funded rebate for qualifying homeowners who are 65 or older, disabled, or disabled veterans. It can cover all or part of your city and county taxes, but it works as a rebate, so you still owe the bill when it comes due.
What if I inherited a Memphis house with back property taxes?
The taxes stay with the property, so they need to be settled before or at closing. You may still be able to sell before probate ends, which our guide on how to sell an inherited house in Memphis explains.
Does buyerhouse buy Memphis homes with back property taxes?
Yes. buyerhouse buys houses as-is, including houses with delinquent taxes. We pay all closing costs, and the title company pays the taxes from the proceeds at closing.
Get Help With Property Taxes in Memphis Before a Tax Sale
Falling behind on property taxes in Memphis is stressful, but you have more options than you might think. Start by checking your balance with the Trustee and the City, and ask about payment plans and tax relief. Because interest builds every month, acting early protects the most equity.
If catching up is not realistic, call buyerhouse at (901) 979-9929 or request your cash offer online. We will give you a fair offer within 24 hours, and you choose the closing date. This article is general information, not legal or tax advice, so check your exact balance and deadlines with the Trustee, the City Treasury, or an attorney.
Give Us A Call Today
901-979-9929 or 
Jamison Hendricks is the founder of buyerhouse, a Memphis-based cash home buyer since 2012. He helps Tennessee homeowners sell fast, as-is, with honesty and care.