Selling a Tax-Delinquent House in Philadelphia
Property tax debt in Philadelphia has a way of compounding quietly. A missed March payment becomes interest, then an addition, then a lien, then a letter with the word “sheriff” in it. By the time most people call anyone, the balance looks nothing like what they originally missed.
Here is how the timeline actually works, what relief exists, and where selling fits. This is general information, not legal or tax advice — a lawyer or a housing counselor should look at your specific account.
The delinquency timeline
Philadelphia Real Estate Tax is due March 31 each year. For 2025 the rate was 1.3998% total — 0.6159% City plus 0.7839% School District.
If you don’t pay by March 31:
- Interest and charges accrue at 1.5% per month, beginning April 1, through January 1 of the following year.
- On January 1, a maximum 15% addition is applied to the principal balance, the taxes are registered as delinquent, and liens are filed in the amount of the total delinquency, including additions.
- From there the City may begin the sheriff sale process.
That January 1 date is the one to circle. Before it, you are late. After it, there is a recorded lien against your property and the machinery has started.
Payment agreements — including if you’re not on the deed
The Owner Occupied Real Estate Tax Payment Agreement (OOPA) is the City’s income-based plan for people who live in the home they own. To be eligible, you must live in the home you own.
What makes OOPA unusual is who else can use it. Per the City: “If your name is not on the deed to the home you live in, but you have a legal interest in the property, you may also be eligible.” You complete a tangled title supplement and list the reasons for your ownership interest. Acceptable proof includes copies of fraudulent deed filings, a notarized deed putting title in your name, certified copies from the Register of Wills naming you as administrator of the owner’s estate, or similar documentation.
Payments are set by household size and monthly income across five tiers, ranging from 0% to 10% of monthly income. Some low-income and senior residents pay $0 per month.
If you do not live in the property — an inherited house you don’t occupy, a former rental, a vacant property — OOPA is not the right program. The City runs a separate Real Estate Tax payment plan for property you don’t live in, and there is also a Real Estate Tax Installment Plan for eligible owner-occupants.
Getting into an agreement is the standard first move for anyone who wants to keep the property. Whether an agreement affects a sale date that has already been scheduled is a question for a housing counselor or attorney — call the Save Your Home Philly Hotline at 215-334-HOME (4663), which handles unpaid property taxes and City liens, including water liens, as well as mortgage foreclosure.
Sheriff tax sales and the Land Bank
The Philadelphia Sheriff’s Office conducts real estate sales arising from both mortgage foreclosures and tax liens, and publishes separate conditions of sale for each. Since 2021 the Sheriff has conducted these sales online, through the auction platform Bid4Assets, rather than in person.
Separately, the Philadelphia Land Bank exists for “returning vacant and tax-delinquent properties to productive use.”
See what is left after the taxes are paid
Back taxes do not have to be paid before you sell — they come out of settlement. Send the address and we will show you what you would actually walk away with once the liens are cleared.
No fee, no commission, no obligation. If a payment agreement is the better route, we will point you to it.
Liens don’t have to stop a sale
A recorded tax lien does not make a property unsellable. It makes it a property that has to close correctly. In a normal closing, the title company orders payoffs for every recorded lien — taxes, water, mortgages, judgments — and those are paid out of the sale proceeds at settlement. The seller receives whatever remains.
The real question is arithmetic: is the property worth more than what is owed against it? If it is, selling lets you clear the debt and keep the difference instead of watching the balance grow. If it isn’t, you need to know that too, and there are other conversations to have — with an attorney, and possibly with your lender.
We will run those numbers with you and tell you plainly which situation you are in. If the equity is there and you would rather keep the house, we will point you to OOPA and the hotline instead of trying to buy it.
Get a no-obligation cash offer
Call (267) 507-5453. Bring whatever you have — a balance from the Philadelphia Tax Center, a lien letter, a sale notice, or nothing at all. We will look up what is public, walk through the numbers, and give you a free, no-obligation cash offer.
Philly Property Buyers · 1800 E Schiller St, Philadelphia, PA 19134
Frequently asked questions
Can I sell a house with a property tax lien on it in Philadelphia?
Generally yes. Recorded liens are paid off at settlement out of the proceeds, and the seller keeps what remains. What matters is whether the property is worth more than the total owed.
When do unpaid Philadelphia property taxes become a lien?
Real Estate Tax is due March 31. Charges accrue at 1.5% per month from April 1. On January 1 of the following year, a maximum 15% addition applies, the taxes are registered as delinquent, and liens are filed for the total delinquency including additions.
What is OOPA and can I use it if I’m not on the deed?
OOPA is the City’s income-based payment agreement for people who live in a home they own, with payments of 0–10% of monthly income depending on tier. If your name is not on the deed but you have a legal interest in the property, you may still be eligible by completing the tangled title supplement and documenting your interest.
Will a payment agreement stop a sheriff sale that’s already scheduled?
We cannot tell you that from a website, and you should not rely on any site that does. Call the Save Your Home Philly Hotline at 215-334-HOME (4663) or a foreclosure attorney immediately — the answer depends on where your case stands.
Can I get the property back after a tax sale?
This is a genuinely contested area in Philadelphia and we are not going to guess at it. Speak to an attorney right away rather than waiting; whatever rights exist are time-limited.
Do I have to pay the back taxes before I can sell to you?
No. That is the point of a payoff at settlement. You do not need to bring money to the table to clear a lien in a normal closing.
See what is left after the taxes are paid
Back taxes do not have to be paid before you sell — they come out of settlement. Send the address and we will show you what you would actually walk away with once the liens are cleared.
No fee, no commission, no obligation. If a payment agreement is the better route, we will point you to it.
