Can you sell a house with back taxes in Illinois?
Yes. Unpaid property taxes, with their interest and costs, are a first lien on the house, ahead of the mortgage and every other lien (35 ILCS 200/21-75). A buyer can’t get clear title until that lien is paid, so the back taxes are normally paid out of the sale at closing, before the seller receives anything. If the taxes were already sold at a tax sale, the sale pays the redemption amount instead.
What is property tax delinquency in Illinois?
A property tax installment left unpaid past its due date is delinquent. From then on it accrues interest every month, at the rates below, and the unpaid amount stays a first lien on the house (35 ILCS 200/21-75). If it is still unpaid when the county holds its annual tax sale, the taxes can be offered to tax buyers.
Can I sell my house before the Illinois tax sale?
Yes, and it is the cheapest point to sell. Before the tax sale, the payoff at closing is the back taxes plus the monthly interest. After it, the payoff is the redemption amount, which adds the tax buyer’s penalty and costs and steps up every six months (35 ILCS 200/21-355). A sale that closes first keeps the taxes from being sold at all. Tell the title company the taxes are delinquent so the payoff figure is ordered early.
How fast do unpaid Cook County property taxes grow?
In Cook County, unpaid taxes for tax year 2023 and later accrue interest at 0.75% per month, and earlier tax years at 1.5% per month (35 ILCS 200/21-25). In Cook, no interest is added to tax-year 2023 balances from September 2, 2025 to January 1, 2027 (35 ILCS 200/21-150). In counties other than Cook, the rate is 1.5% per month (35 ILCS 200/21-15). Once the taxes are sold at a tax sale, the cost to redeem steps up every six months after the sale date (35 ILCS 200/21-355).
What happens at a Cook County tax sale?
A tax buyer pays your unpaid taxes and receives a tax certificate. The buyer purchases the taxes, not the house (Cook County Clerk). The Cook County Treasurer holds an annual tax sale; the next one is set for December 15, 2026, for unpaid tax-year 2023 taxes (Cook County Treasurer). A scavenger sale, which sells tax debts the county is already holding, now happens only when the County Board orders one (35 ILCS 200/21-145). Most owners get a notice from the Treasurer before the annual sale begins.
How long do I have to redeem sold taxes in Illinois?
For a house or building with fewer than 7 units, you can redeem for up to 3 years from the tax sale on certificates issued on or after July 10, 2026; before that change the period was 2½ years (35 ILCS 200/21-350, as amended by P.A. 104-553). Vacant non-farm property, commercial or industrial property, and buildings with 7 or more units get 1 year. A tax buyer can extend the deadline, but never past 3 years from the sale (35 ILCS 200/21-385). Three to six months before the deadline, the tax buyer can ask the court for a tax deed (35 ILCS 200/22-30). Miss the deadline and you can lose the house; for tax sales on or after July 10, 2026, it goes to a court-run auction and you can claim the leftover money (surplus equity) from the county (35 ILCS 200/22-40, 21-302).
Can I still sell the house after my taxes were sold?
Yes, while the redemption period is open. Order an Estimate of the Cost of Redemption from the Cook County Clerk right away: it is the amount needed to redeem the sale and remove the threat of losing the property (Cook County Clerk). Redemption has to be paid in full, because partial payments do not redeem, and the sale proceeds can cover it at closing.
The honest math on selling with back taxes
Most months the taxes sit unpaid, interest is added. Once they are sold, the redemption cost climbs every six months, and the redemption deadline is a hard date. Catching up out of pocket only works if the money is there and the next bill can be paid too.
If the house has equity, selling turns it into the payoff. The back taxes or the redemption amount come off the top at closing, the lien is cleared, and you keep what is left, instead of letting interest and penalties grow until a tax deed petition is filed. Selling gives up any later claim to surplus equity. If the buyer contacted you first, Illinois law requires the contract to say this in writing, and you can cancel within 5 business days (765 ILCS 940/30, 940/35). Ask an attorney before you sign.
If a mortgage is also behind, the Illinois foreclosure guide covers that timeline. Tell us whether the taxes have been sold and which county the house is in so the payoff math starts from the right number. No pressure, no obligation.
