Falling behind on property taxes happens to more people than you might think. A job loss, a medical bill, an inherited house nobody planned for, or a tax bill that simply got lost in the mail can all do it. If you own a house in Kenton, Campbell or Boone County and the tax bill is past due, here is a plain-English look at what happens next and what your options are.
Quick note: I’m not an attorney, and the rules can change. Use this as a starting point, and check with your county or a local attorney about your situation.
How the Kentucky property tax calendar works
Kentucky property tax bills are handled by the county Sheriff. Here’s the usual yearly timeline:
- By November 1: pay early and you get a small discount.
- November 2 to December 31: pay the full face amount.
- January: a 5% penalty is added.
- February through mid-April: the penalty goes up to 10%, plus a 10% Sheriff’s fee.
- Around April 15: the Sheriff stops collecting. Unpaid bills go to the County Clerk and become a Certificate of Delinquency, which is a lien on the house.
What happens after the bill goes to the County Clerk
Once a bill becomes a Certificate of Delinquency, interest builds at 12% a year, and more fees can be added. The County Attorney’s office usually sends notices before the next step.
Each summer, the County Clerk holds a sale where private investors, called third-party purchasers, can buy these certificates. If someone buys yours, you now owe that investor instead of the county, and they can add their own allowed fees. They are required to notify you by certified mail.
If the debt still isn’t paid, the certificate holder can eventually file a lawsuit to collect, and that can include foreclosure on the house. The law requires them to send you a warning notice at least 45 days before filing. Every case is different, but the big takeaway is this: the longer it sits, the more it costs, and the fewer options you have.
Your options if you’re behind
1. Pay it in full. If you can, this stops the interest and fees right away. If the certificate hasn’t been sold yet, you pay the County Clerk.
2. Ask about a payment plan. Many County Attorney offices offer payment plans on certificates they still hold. If a third-party purchaser bought yours, Kentucky law says many of them must offer a monthly installment plan if you ask in writing. They can charge a small processing fee. Ask early, while you still have time.
3. Refinance or borrow against the house. If you have equity and decent credit, a loan can pay off the taxes and give you breathing room. Just make sure the new payment is one you can handle.
4. Sell the house. When a house sells, back taxes are usually paid out of the sale money at closing, so you don’t need cash up front to clear them. If the house is in good shape and you have time, listing with a real estate agent will often bring the highest price. If the house needs work, is full of belongings, or time is running short, selling as-is to a local cash buyer can be simpler and faster.
5. Get help. If foreclosure papers have already been filed, talk to a real estate attorney right away. You may still have options, but the deadlines get tight.
A few things to watch out for
- Don’t ignore certified mail. Those notices tell you who holds your tax lien, how much you owe and what’s coming next.
- Be careful with anyone who asks for money up front to “fix” your tax problem.
- Get the real payoff number from the County Clerk, County Attorney or certificate holder before you make any decisions.
Want to talk it through?
Hi, I’m Darren with Local Honest Homebuyer. We buy houses in Northern Kentucky and Greater Cincinnati, and we’ve helped plenty of folks who were behind on taxes. If selling makes sense, we can make you a fair cash offer and pay the back taxes at closing. If paying it off, a payment plan or listing with an agent is the better fit for you, I’ll tell you that too.
Call or text Darren at 859-549-4700, or fill out our short form. No pressure, and no obligation.