Maybe the taxes on your house fell behind a couple of winters ago, after a job loss, a funeral, or a roof that couldn’t wait. Now you’ve heard the City of Richmond is restarting its tax sale program, and you’re wondering what it means for you. You still own the house, and you still have options, right up until the day of an auction. So yes, you can sell a house with back taxes owed in Richmond. But selling is only one of your choices, and you usually have more time than it feels like right now. This guide walks through all of them, so you can decide what’s right for you.
Why Is Richmond Talking About Tax Sales Again?
Richmond paused its real estate tax sale program in January 2023, and it relaunches in November 2026, according to the city’s tax sale program page. The city’s FAQ says the first sale is anticipated in the second half of 2027. June 2027 was mentioned earlier, but no sale date has been set. For almost four years, a lot of owners heard nothing about their unpaid taxes except a bill. That quiet is ending.
The numbers explain why. About $24.2 million in Richmond real estate taxes was overdue at the end of August 2026, NBC12 reported on Sep 28, 2026. Of that, $5.4 million had gone unpaid long enough to qualify for a tax sale. The city has identified 85 properties for a potential sale so far, with 21 more expected to qualify under the faster rule for blighted property.
Plenty of owners will say, “The city stopped doing tax sales.” That’s half right. The city stopped selling houses, but the taxes, penalties and interest never stopped adding up. The pause bought time, not forgiveness.
The city’s own leaders have said the goal is compliance, not displacement, and that most past cases ended in payment plans. That’s good news for owners who act early, while every option is still on the table.
Selling is one of those options, and a quick read of how it works when we buy a house shows what it looks like before you call anyone.
What Does Virginia Law Say About a Tax Sale?
Tax sales in Virginia run under Va. Code § 58.1-3965. In plain words, taxes have to stay unpaid for a set waiting period before a property can be sold. Richmond counts it as two calendar years: two New Year’s Eves after the due date. If the property has a condemned building, a nuisance, a derelict building or a blight designation, that clock shrinks to one year.
The city gives its own example on its program page. A bill that goes unpaid in 2027 stays delinquent through 2028. After December 31, 2028, the property can be sold anytime in 2029. Two New Year’s Eves is the line to watch.
The law also builds in notice. At least 30 days before the city goes to court, the tax collector has to mail you a notice. It goes to your address on file, and in some cases to the property too. That notice has to tell you that you can ask for a payment agreement. The city also has to publish a list of the properties in a local newspaper.
After that, the process runs through the Richmond Circuit Court. The city files a lawsuit, and a special commissioner is appointed to sell the property at a public auction. Nothing about it is quick or secret, and the court has to confirm the sale.
Richmond’s page says the city may hand these cases to its contracted law firm when its own collection efforts don’t work. Once a property enters the program, the City Attorney’s Office mails a Notice of Intent to the owners and occupants. If you get one, that office is the place to ask where your case stands and what you owe.
How Much Do Back Taxes Cost in Richmond?
Richmond’s real estate tax rate is $1.20 per $100 of assessed value, according to the city’s real estate tax page. The bill comes in two halves, due January 14 and June 14. Miss a due date and the city adds a 10 percent penalty plus interest at 10 percent a year.
Here’s what that looks like on a house assessed at $250,000, a made-up example to keep the math simple. The yearly tax is $3,000. Two years unpaid is $6,000 in tax and $600 in penalties, before a single dollar of interest. Interest keeps running the whole time.
As the case moves forward, the costs grow again. Under § 58.1-3965, the owner also pays for the newspaper notice and the reasonable attorney fees the court sets. On top of that comes the title search the city ran to find everyone who has to be notified. Those can add a real chunk to the balance in a short time.
People sometimes tell themselves, “I’ll catch up when the market’s better.” The trouble is that the balance doesn’t wait for the market. Waiting costs money.
What Are Your Options Before a Tax Sale?
There’s no single right answer, and the best one depends on your balance, your house and how much time you have. The first option is a payment plan. Under § 58.1-3965, the treasurer can pause a tax sale case if the owner signs an agreement to pay everything in installments over no more than 72 months. You don’t have to wait for a notice. The city says you can set up a payment arrangement through RVA311 even if your taxes aren’t past due yet. If your property is already in the tax sale program, Richmond’s page says you can still ask the Finance Department for a plan after you get a Notice of Intent and before a Notice of Auction goes out.
The city attaches a few conditions. You have to stay current on new bills for the same tax while you pay down the old ones. You can only have a plan on one tax type at a time, and you can’t start another plan for 12 months after the last one began. A plan only works if you can keep it.
The second option is relief. Richmond’s Older Adults and Persons with Disabilities tax relief program can cover up to 100 percent of the real estate tax for qualifying owners. It’s for owners 65 and older and owners who are 100 percent permanently and totally disabled, who live in the home and meet the program’s income and net worth limits. It mainly lowers current and future bills rather than erasing back taxes, so ask how it would work with your balance. If that describes you or a parent, call RVA311 at (804) 646-7000 and ask before you do anything else.
The third option is redemption. You can stop the sale at any time before the auction by paying all the taxes, penalties, interest, attorney fees and costs, according to § 58.1-3965. Partial payments don’t stop the case. That surprises people.
Have you asked the city for your full payoff amount in writing? That one number tells you which of these options is realistic. If bankruptcy is on the table, talk to a Virginia attorney first. The city’s page says a bankruptcy filing pauses a tax sale until the case is dismissed. A HUD-approved housing counselor can also walk through the numbers with you at no cost or low cost, and a tax professional can help too.
The last option is selling the house before an auction, either by listing it with an agent or by selling it directly. If your property is just outside the city, you can see how we buy houses in Henrico, VA, as-is, on a timeline that works for you.
What Happens to Your Equity If the House Goes to Auction?
Virginia law says the former owner, or their heirs, get the surplus from a tax sale. That’s the money left over after taxes, penalties, interest, attorney fees, costs and liens are paid, under Va. Code § 58.1-3967. It’s a real protection, but it comes with work.
You have to prove you’re entitled to it, and you have to claim it within two years after the court confirms the sale. If nobody claims it in time, the clerk pays the money to the city. Heirs who don’t even know an uncle’s house was sold can lose it that way.
The bigger issue is the price. An auction doesn’t wait for the right buyer, a fresh coat of paint or a spring market. Picture a brick rancher on Richmond’s Southside that would need new carpet and a furnace to show well. On a court auction day, it sells for whatever the bidders in the room will pay. Auction buyers rarely pay retail.
I’d much rather see a homeowner explore their options and protect the equity they’ve worked hard to build than feel like an auction is their only choice. Whatever you decide, it’s worth deciding before the court does. If the house sits in Chesterfield County, here’s how we buy houses in Chesterfield, VA for cash.
Can You Sell a House With Back Taxes Owed in Richmond?
Yes, and you usually don’t have to pay the back taxes before you sign a contract. In a normal sale, the closing attorney or title company finds the unpaid taxes during the title search. At closing, they can coordinate paying the city from your sale proceeds, as long as there’s enough equity and no legal issue stops the closing. You get what’s left.
It works the same way whether you list with an agent or sell directly. The real question is which route fits your house, your timeline and your situation. If your house is in good shape and you have some time, listing with an agent might put more money in your pocket. But if you need to sell quickly, don’t want to make repairs, or just want a simpler process, that’s where we may be able to help.
A direct sale can make sense when the clock is short, the house needs work, or the owners are a group of heirs who all have to sign. We’re a local, veteran-owned company here in Richmond, and we buy houses as-is with our own cash: no repairs, no showings and no commission. We typically cover the agreed closing costs and title fees, so you know what to expect before you decide anything. Depending on the situation, we may be able to close in as little as 15 days. Our typical target is 21 to 24 days, and we only confirm a timeline after we’ve reviewed the property and the title. You can read reviews from Richmond-area sellers who’ve worked with us.
If you’re in Hanover County, you can see how we buy houses in Hanover, VA and Mechanicsville, VA the same way.
Frequently Asked Questions
Can I sell my house if I owe back taxes in Virginia?
Yes. You own the house until a court-ordered sale is confirmed, so you can sell it with taxes owed. The closing attorney or title company can usually pay the city from your sale proceeds at closing, as long as there’s enough equity and nothing legal stands in the way, and you keep the rest. The sale has to close before the auction to stop the tax sale.
How long can property taxes go unpaid in Richmond before a tax sale?
Under Va. Code § 58.1-3965, Richmond counts about two calendar years: the taxes have to stay unpaid through two New Year’s Eves after the due date. Blighted, condemned, nuisance or derelict property can be sold after one year. Richmond also has to send notices before it goes to court.
Does a payment plan stop a Richmond tax sale?
Yes, as long as the plan stays in good standing. Richmond’s tax sale page says the City Attorney’s Office stops further tax sale action while you keep up with the plan. Virginia law caps these plans at 72 months. Falling behind on current bills can restart the tax sale case.
Do I get any money if the city sells my house at a tax sale?
You can. Under Va. Code § 58.1-3967, the former owner or heirs get the surplus after taxes, costs and liens are paid. You have to prove you’re entitled to it and claim it within two years after the court confirms the sale. Unclaimed money goes to the city.
Who do I call about my balance in Richmond?
Call RVA311 at (804) 646-7000 for your balance, payment plans or the OAPD tax relief program. If you’ve received a Notice of Intent, the City Attorney’s Office can tell you the status of your case and the full payoff. Ask for both in writing.
Where That Leaves You
Back taxes feel like a wall, but in Richmond they’re a process with dates, notices and real choices. Some homeowners can work out a payment plan with the city. Others are better off listing with an agent. For some, selling directly to us is the simplest way through. The right choice is the one you can actually finish.
We’re not here to pressure anyone into selling their home. If you’re not sure what you want to do yet, that’s a good time to talk. If you’d like to go over your options, reach out to us or call (804) 609-3966 for a no-pressure conversation. If a payment plan or listing with an agent makes more sense for you, I’ll tell you so.
Helpful Reading
Can You Sell a House in Foreclosure in Virginia Before Auction
Avoiding Foreclosure in Virginia
How It Works When We Buy Your House