If you fall behind on your property taxes, your home could be placed in a tax sale. In Baltimore City, this can happen if you owe $750   or more in property taxes or other city bills (such as water bills). In many other Maryland counties, the amount can be as low as $250.

This article describes how tax sales work, how you can reclaim your property, and where to turn for help. 

Topics on this page:

• Tax Sale Overview
• Timeline
• Redemption
• Foreclosing the Right of Redemption
• What to Do If You Receive a Foreclosure Notice
• Getting Help

Tax Sale Overview

Any unpaid property taxes become a lien on your property. A lien is a legal claim or debt attached to your property. In addition to property taxes, counties may also add certain local charges to a property lien.

Maryland law requires each county’s Collector of Taxes to sell tax liens to collect delinquent taxes and fees owed to the county. Tax liens are sold as tax lien certificates through a tax sale.

At the tax sale, bidders compete to buy tax lien certificates. Each county sets its own bidding rules and procedures for the sale. When a tax lien certificate is sold, the county’s lien on the property transfers to the purchaser.

Note: The sale does not transfer ownership of your property. The buyer purchases the debt you owe, not the property itself. You still own your home after the tax sale. After the sale, you can redeem (or reclaim) your property by paying off the taxes, interest, and any additional costs. You must pay off the debt within a certain time. If you do not, the buyer may file a court case to “foreclose your right to redeem” and take ownership of the property.
 

Timeline

This section describes the timeline for Baltimore City. Other counties in Maryland follow a similar timeline.

• February: A final notice listing all delinquent taxes and charges will be mailed to the property owner. The notice is titled Final Bill and Legal Notice.
• March: A complete list of property eligible for the tax sale will be published twice in two newspapers of general circulation.
• April: A second notice of tax sale is sent to the property owner.
  • Payment must be made by April 30 to avoid the tax sale.
  • The amount of taxes or other municipal liens (like environmental control citations) is called a certificate
• May: The tax sale typically occurs in the 3rd week of May.
• After the tax sale, the property owner can redeem the certificate from the tax sale bidder.

Note: In Baltimore City, the property cannot be included in a tax sale if the only municipal lien is an unpaid water bill.  This exemption does not apply to other counties.

Note: Check if your county withholds tax sales for low-income homeowners at least 65 years old or disabled. If so, the county may have additional eligibility criteria.

Read the Law: Md. Code, Tax-Property § 14-811, 14-817, Baltimore City Code, Article 28, Subtitle 8

Redemption

If your property is sold at a tax sale, you still have the right of redemption. The right of redemption allows you to get your home back by paying off what is owed within a certain period. 

To redeem the property, you (or another interested person, such as a mortgage holder) must pay the certificate holder:

• The total lien amount paid at the tax sale, plus interest (interest ranges from 6-18%, depending on the county where you live).
• Any taxes, interest, and penalties paid by the certificate holder.
• Any new taxes, interest, and penalties that became due after the tax sale.
  • For example, if a tax sale was for 2024 and you redeem the property after July 1, 2025, you must also pay the 2025 property taxes.
• Any expenses or fees of the certificate holder allowed by law.
  • If the certificate holder does not provide the Collector of Taxes with a list of expenses or fees, the Collector must attempt to contact the certificate holder. If the certificate holder fails to respond within 5 business days, the collector may redeem the property without an indication that the expenses have been paid.

Because of the interest charges, the longer you wait to redeem, the more you will have to pay. 
To find the interest rate for your county, visit the County Codes page on the Thurgood Marshall State Law Library site.

Read the Law: Md. Code, Tax-Property § 14-828; § 14-843;  Baltimore City Code, Article 28, § 8-1

Foreclosing the Right of Redemption

If you do not redeem your property after a tax sale, the certificate holder (the person who bought the tax lien) can start a court case to foreclose your right of redemption. This means asking the court to take away your right to get the property back and to transfer ownership to the certificate holder.

When a Foreclosure Case Can Begin

The certificate holder must wait a certain amount of time before filing for foreclosure.

• In most Maryland counties, the holder must wait at least 6 months after the date of the tax sale.
• In Baltimore City, the waiting period is at least 9 months.

After that time has passed, if the property has not been redeemed, the certificate holder may start the foreclosure process.

Notice Requirements Before Foreclosure

Maryland law requires 2 separate written notices to be sent to the property owner (and to anyone else with a legal interest in the property) before a foreclosure case can be filed.

1. First Notice (Pre-Foreclosure Notice):
   • Sent by certified mail and first-class mail to the property owner’s last known address and to all other interested parties.
   • Informs the owner of the right to redeem and how to pay the taxes, interest, and costs owed.
   • Warns that if the property is not redeemed, the certificate holder may file a court case to foreclose the right of redemption.
2. Second Notice (Notice of Intent to Foreclose):
   • Must be sent at least 30 days before the foreclosure complaint is filed in court.
   • Repeats the required information of the First (Pre-Foreclosure) Notice.
   • Must be sent by certified and first-class mail to all required parties.

The certificate holder must file proof with the court that both notices were properly sent. If the notices are not sent correctly or on time, the court will not allow the foreclosure case to proceed until the problem is fixed.

The Court Process

After proper notice, the certificate holder can file a complaint to foreclose the right of redemption. The complaint must be filed in the circuit court for the county (or Baltimore City) where the property is located. The court will review the case and, if all legal requirements are met, may issue a judgment foreclosing the right of redemption. Once the judgment is entered, the certificate holder becomes the new legal owner of the property.

After the judgment, the certificate holder can record a deed in the land records to transfer title. The previous owner no longer has any right to redeem the property or reclaim ownership.

Read the Law: Md. Code, Tax-Property § 14-833, 14-836, 14-839 to 14-847; Baltimore City Code, Article 28, §§ 8-1 to 8-9

What to Do If You Receive a Foreclosure Notice

If you receive a notice about the foreclosure of your right of redemption, act quickly. You still have time to save your property, but waiting can make it more expensive—or even impossible—to get it back.

1. Contact the Tax Office Right Away
   • Call or visit your county Collector of Taxes as soon as possible. Ask for the redemption amount—the total you need to pay to stop the foreclosure. The tax office can tell you the exact amount and how to pay it. Make sure to get this information in writing if possible.
2. Pay the Redemption Amount Promptly
   • You can redeem your property up until the court enters a final judgment. Once the judgment is entered, you lose the right to redeem, even if you pay afterward. Because interest and other charges increase over time, redeeming sooner can save you money.
3. Watch for Court Documents
   • If the certificate holder files a foreclosure complaint, you will be served with court papers. Do not ignore these papers. Read them carefully—they include important deadlines.
   • If you do not respond or redeem in time, the court may grant a judgment that permanently transfers ownership of your property.
4. Get Legal Help
   • Tax sale foreclosure cases can move quickly and have serious consequences. If you are unsure what to do or cannot afford to pay the full amount right away, get legal advice as soon as possible.
5. Keep Records
   • Keep copies of all letters, receipts, and notices related to the tax sale and foreclosure. These documents may be important if there is a dispute later.
      

Getting Help

Water Bills

• Call your county government and inquire if any programs can assist you.
• For Baltimore City residents
  • If you have received an incorrect water bill, contact the Department of Public Works and request an information conference.
  • If you have had a water leak, contact the Department of Public Works and request a credit.
  • If you are a Baltimore City resident, 65 or older, you may qualify for a senior discount, which may reduce your water bill. To find out if you qualify, contact Utility Billing at (410) 396-5398.
  • The Baltimore City Department of Public Works offers several programs to assist qualifying Baltimore City customers who need bill adjustments, payment plans, or financial assistance; as well as provide credits and fee exemptions for financial hardship. For information on available programs, visit Water Billing Programs to Assist Residents.
  • For any billing issues, including obtaining credits, call the Department at 410-396-5398.
• If you have issues paying your electric bill (which does not trigger a tax sale), you can apply for energy assistance. Call BGE at 1-800-685-0123 or contact the Office of Home Energy Programs at 1-800-352-1446 (Baltimore City residents should call 410-396-5555). Grants can help with past-due amounts and future payments.

Property Taxes

• Apply for the Homeowner’s Property Tax Credit through the Maryland Department of Assessment and Taxation. The tax credit is based on income, and you need to apply every year for the credit. Applications are due September 1 of every year. Call Tax Credits Telephone Service at 410-767-4433.
• Apply for the Homestead Tax Credit. The Homestead Credit limits the increase in taxable assessments each year to a fixed percentage. Every county and municipality in Maryland is required to limit taxable assessment increases to 10% or less each year. All homeowners must submit a one-time application to establish eligibility for the credit. For questions about the homestead tax credit, call 410-767-2165.

Home Repairs

• Call your county government and inquire if any programs can assist you.
• For Baltimore City residents - if you require housing repairs to help address high water bills, energy efficiency issues, or other housing-related problems, call the Baltimore City Housing Department's LIGHT Program at 410-396-3023. LIGHT intake staff will talk with you about your home repair needs and help connect you to any eligible programs and resources.

Tax Sale Loan

• For Baltimore City residents - Neighborhood Housing Services has a tax sale loan program. Generally, you must have a stable source of income, owe no more than $1,500 in delinquent taxes or water bills, and have no current bankruptcy or liens against the property. NHS may be able to loan you the funds with a 2 year repayment plan. Contact NHS at 410-327-1200.

Legal Issues

• If your home has already gone to tax sale, or if you need assistance resolving issues with a City department, you may want to seek legal assistance.
  • The Legal Aid Bureau, online intake or contact a local office for assistance.
  • Maryland Volunteer Lawyers Service. Call 800-510-0050 or complete an online application. 

Office of the Tax Sale Ombudsman

• The Office of the Tax Sale Ombudsman assists eligible homeowners with understanding the process for collection of delinquent taxes, applying for tax credits, discount programs, and other public benefits. The Office can also refer eligible homeowners to legal services, housing counseling, and other social services.
• Homeowner Protection Program (HPP)
  • the State Tax Sale Ombudsman administers HPP. If you are a homeowner of limited income, you may qualify for the HPP, which could keep your home out of tax sale for at least three years. The HPP can also help you pay your taxes and keep your home.
  • To be eligible to apply for HPP:
    • The property must be your principal residence, and
    • The assessed value must not exceed $300,000.
    • Your combined annual income must not exceed $60,000, and the total value of your assets must not exceed $200,000 (not including the property's value).
  • Priority HPP enrollment is given to homeowners over 60, to individuals receiving disability benefits, or individuals who have resided in their homes for 10 years or more.

Check out their website for information about the tax sale process and available services and programs. The site also provides access to County-Specific Information and Frequently Asked Questions (FAQ). You can email them for assistance at SDAT.TaxSale@Maryland.gov or call them at 410-767-4994.

Note: Your county may have a local tax sale ombudsman. Contact your County Finance Office.