Behind on property taxes in Duval or Clay County: tax certificates, tax deed sales, and your options
Florida does not foreclose on unpaid property taxes the way a bank does. It sells a certificate on the debt, and two years later that can become a sale of the house. Here is how it works and how to stop it.
Property taxes are easy to fall behind on because nothing dramatic happens at first. In Florida the process is slow, public and expensive, and it ends with the house being auctioned. This guide covers how it works in Duval and Clay County and what you can do at each stage.
It is general information, not legal or tax advice. The Tax Collector's office in either county can give you the exact amount owed on your parcel.
The yearly schedule
- November 1: tax bills go out. Paying early earns a discount, starting at 4 percent in November and stepping down each month.
- March 31: the last day to pay without penalty.
- April 1: unpaid taxes become delinquent. A 3 percent charge is added, plus advertising costs once the delinquent list is published.
The tax certificate sale
This is where Florida differs from most states. Around the end of May, the Tax Collector holds a tax certificate sale, online, for every parcel with unpaid taxes.
An investor pays your tax bill to the county. In exchange they receive a tax certificate, which is a lien on your property. They do not get the house, and they cannot contact you to collect. They earn interest on what they paid.
The bidding is on the interest rate. It starts at 18 percent a year and investors bid it down. On a property in a desirable area the rate may end up low. Either way, Florida law sets a minimum return on most certificates, so paying one off costs you at least a set percentage on top of the tax.
If you do nothing the next year, another certificate is sold for that year's taxes. They stack.
The two-year mark: the tax deed application
A certificate holder has to wait. Once two years have passed from April 1 of the year the certificate was issued, the holder can file a tax deed application. To do that they must pay off every other outstanding certificate and the current taxes, plus fees.
That application is the real danger sign. It means someone has decided to force a sale, and the amount needed to save the house jumps, because it now includes all the costs of the application.
The tax deed sale
After an application, the Clerk of Court sends notices to the owner and to anyone with a recorded interest, and schedules a tax deed sale. In Duval and Clay County these are public auctions run by the Clerk. The opening bid covers the taxes, interest and costs. For a homestead property, the opening bid also includes half of the assessed value.
The winning bidder gets a tax deed. Most other liens are wiped out. The former owner loses the property.
You can stop it by redeeming. That means paying the full amount owed, including the certificate holder's interest and costs, at any time before the sale is completed and paid for. Once the deed is issued, the right is gone.
If the property sells for more than what was owed, the extra is surplus. Lienholders are paid first, then the former owner. There is a claims process and a deadline. You can file the claim yourself, and you do not need to give anyone a percentage to do it.
Your options, from cheapest to most costly
Pay it. Ask the Tax Collector for the exact amount to redeem and the date it is good through. Paying off a certificate ends that year's problem.
Ask about a payment plan. For delinquent taxes that have not yet gone to a tax deed application, some Florida tax collectors offer partial payment or installment arrangements. Ask the office directly what is available for your parcel. Florida also has an installment plan for current taxes that spreads the bill over four payments, which helps you avoid falling behind again.
Check your exemptions. The homestead exemption, the additional senior exemption for lower-income owners, and exemptions for disabled veterans and others all lower the bill going forward. Florida also has a homestead tax deferral program that lets qualifying owners postpone part of their taxes. None of these erase what is already owed, but they can make next year's bill manageable.
If there is a mortgage, the lender will usually step in. Most loans let the lender pay delinquent taxes and add the amount to what you owe, often creating an escrow account from then on. That keeps the tax deed sale away, but your payment goes up, and if you cannot make it the loan goes into default. How foreclosure works in Florida.
Sell before a tax deed application. When you sell, the title company pays every outstanding certificate and the current taxes out of the sale price. You do not need the money up front. If the house has equity and you cannot bring the taxes current, selling keeps what is left. Waiting adds interest and, after an application, thousands in costs.
Inherited houses and tax certificates
A large share of tax deed sales involve houses whose owner has died. The bills and notices keep going to the old address, the family does not realize taxes are unpaid, and two or three certificates build up before anyone looks.
If you are an heir:
- Look the parcel up on the county Tax Collector's website. It shows every unpaid year and whether a tax deed application has been filed.
- If an application is pending, find the sale date. That is your deadline.
- Start probate, because someone needs authority to sell. How that works for an inherited house in Jacksonville.
A quick way to see where you stand
- Find the total owed across all years, including certificates.
- Check whether a tax deed application has been filed.
- Add any mortgage payoff and other liens.
- Compare that to what the house would sell for as it sits.
If there is a healthy gap, you have choices. If a tax deed application is already filed, act now.
How we help owners with back taxes
We buy houses for cash across Duval County and Clay County, including properties with several years of certificates and a tax deed sale already scheduled. We look up what is owed before we make an offer, show you what would be paid to the county and what would be left for you, and close through a local title company that pays the Tax Collector directly.
If an exemption, a deferral or a payment arrangement would let you keep the house, that is usually the better result, and we will tell you so. To see a number, send us the address or try the offer estimator, which has a line for back taxes and liens.