Property Tax Issues: Common Questions and Considerations

About this Q&A 

This Q&A article is intended only as general information to help homeowners be aware of common property tax challenges. This article does not constitute legal advice and may not reflect the rules or procedures in your state or locality.  
Important disclaimer: The information presented reflects recurring themes from questions received by AARP Foundation Property Tax-Aide and was informed by review from AARP Foundation staff, including attorneys, for general accuracy and context. Because property tax laws vary widely and individual circumstances differ, readers are encouraged to contact their local taxing authority or seek assistance from a qualified attorney or legal services provider for advice specific to their situation.

At Risk of a Tax Sale

Story Intro 

The following scenarios are illustrative and reflect common questions received by AARP Foundation Property Tax-Aide over time. Details have been changed to protect privacy. 

Pat has lived in her home for decades and relies on a limited monthly income from SSI. After an injury, she fell behind on her property taxes for her home. She has received notices from the local tax office but isn’t sure what they mean, whether a tax sale is possible, or what options might be available to help her keep her home. 

What are the first warning signs that a homeowner might lose their home to a tax sale? 

In general, homeowners may face a risk of a tax sale if property taxes or other charges collected by the municipality, such as municipal water, electricity bills, school taxes, or special assessments, go unpaid.

If you are not sure, checking with your tax collector to confirm that your tax and other payments are up to date may be needed. 

How will a homeowner know if a tax sale is planned? 

Municipalities typically must notify homeowners facing a tax sale. Notice of a planned tax sale often comes by mail unless the homeowner has opted into email notices. Tax sales take place in stages, and the number of notices can vary by state and municipality. In general, the earlier a homeowner acts, the more options they’ll have. So, any notice about falling behind on property taxes (or liens from public utilities, such as a water lien) is a red flag that homeowners should act on immediately.

What should a homeowner do immediately after receiving a tax sale notice? 

After receiving a tax sale notice, homeowners may consider contacting the legal services/legal aid office closest to them to help them understand their rights and options or refer them to other resources. Or they may choose to contact their local/regional bar association. Bar associations often have lawyer referral services and may be able to direct homeowners to the right person to handle their case. Some people find that it takes multiple calls to get through because legal services offices are often operating at capacity. Depending on the situation, homeowners may also consider contacting the office responsible for property taxes (usually the treasurer or assessor) to ask about repayment plans, exemptions for older homeowners, or other forms of relief.

What should a homeowner do if they think they might lose their home to a tax sale? 

Homeowners who are concerned about the possibility of a tax sale often start by contacting the tax collector (usually the treasurer or assessor) to confirm the amount owed, whether assistance is available and relevant deadlines.

Are payment plans or other options usually available? 

Availability of payment plans varies in each state and municipality. In many places, payment plans are only available before a tax sale, which is why homeowners should ask about payment plans or other help as soon as possible. 

Are there special considerations for older or disabled homeowners? 

Older and disabled homeowners are often eligible to apply for reduced taxes and other forms of relief. But many homeowners are missing out on these valuable savings (worth $440 on average but could be much higher). The AARP Foundation Property Tax-Aide website helps you learn about property tax savings for older homeowners. Navigate to your state page to learn more. 

For some older or disabled homeowners, managing mail and bills can become more challenging over time. Be sure to open your mail – ignoring bills because they are stressful can lead to missed notices. Many caregivers and family members check in with loved ones to see if they need support managing or remembering to pay their bills. Setting up a way to track when bills arrive and confirm they’re being paid can be an important safeguard. 

Older homeowners can also ask if they can add a second contact name and address to send tax bills and notices as a backup. 

What if the property owner dies? 

If the property owner dies, ownership generally passes to heirs – often a spouse or children. This can depend on how the property was titled, whether the owner had a will, or other state laws. Reviewing the property’s deed may help clarify whether anyone has rights to the property, such as rights of survivorship. If there is a will, it may indicate who will inherit the home. If there is no will, the state “intestacy” laws (laws dealing with property when a person dies without a will) typically determine ownership.

While ownership questions are being sorted out, property taxes typically continue to accrue. People in this situation often start by making sure property tax bills and notices are being received and paid on time. Contacting the tax collector to inform them of the homeowner’s death can help clarify who is responsible for paying taxes and where bills and notices are being sent. Updating mailing addresses, confirming that taxes have been fully paid, and understanding when future payments are due can help avoid missed deadlines. 

Depending on the situation, some people consider working through probate or surrogate court processes to manage or administer the estate. This can include recording a new deed to reflect ownership changes. Because these processes can vary widely by state and individual circumstances, people in this situation may want to consult a qualified attorney for advice specific to their case. 

Can Someone Appeal or Contest a Property Tax Bill?

Story Intro 

Martin’s property taxes keep going up every year. He’s retired, living on a fixed income, and struggling to keep up with rising costs. He isn’t sure if his home is over-assessed or if there’s a way to challenge the bill. 

When should a homeowner consider contesting or appealing their bill? 

Homeowners may consider contesting or appealing a property tax bill if they believe the assessed value of their home is too high or if the tax bill has become difficult to afford. In many places, homeowners can challenge their tax bill by contesting/appealing the assessed value of the house or seeking any tax breaks that may apply to their situation. 

What are the most common reasons a bill might be incorrect? 

Common reasons a tax bill would be incorrect include that the municipality has over-assessed the value of a home or did not apply a tax break that is applicable to the property. 

What evidence should someone gather? 

When preparing to contest/appeal an assessment, homeowners often look for information that helps explain the condition and features of their home. Examples of information people gather include inspection reports that document the home’s condition, age of major components (such as the roof or windows) and other issues that may not be visible from the outside.   

If arranging an inspection is not feasible, some homeowners choose to document similar information themselves, such as photographs, notes about needed repairs, or details about the age of the house’s major components. Homeowners could also review a sample inspection report to see what information is typically recorded.

Some homeowners use exterior-only or “drive-by” inspections (sometimes called a Broker’s Price Opinion or BPO). But these inspections often rely on publicly available information and may not capture details about a home’s interior condition. This type of inspection may be less helpful when homeowners are seeking a reduction in their home’s assessed value.

Preparing to Seek Legal Help

Story Intro 

Linda’s father passed away two years ago, and she inherited his home. But the property is still in his name, she’s behind on her taxes, and she just received a foreclosure notice. She isn’t sure what rights she has or if she can save the house. 

What red flags suggest a homeowner should contact a lawyer right away? 

Certain situations may prompt homeowners to consider seeking legal advice. These can include falling behind on property taxes or other municipal obligations (water liens, etc.) or anticipating difficulty keeping up with payments.

Some homeowners look for legal help from places like their local legal aid office, nonprofit legal services provider, or bar association referral service, after receiving formal notices related to foreclosure, tax sales, or liens. Others seek advice earlier to better understand their rights and options. Early conversations may help homeowners become aware of options that could reduce the risk of losing their home.

What types of legal help are available for low- and middle-income homeowners? 

Depending on where someone lives, legal help for low- and middle-income homeowners may be available through a local legal aid office, nonprofit legal services provider, or bar association referral services. Availability and scope of service may vary by location. 

How can people prepare for a conversation with a lawyer? 

When preparing to speak with a lawyer, it is a good idea to gather documents related to their property, such as deeds, utility bills, and tax bills or tax notices. Lawyers often ask for basic information about the homeowner and the property. Having documents is helpful, but the lack of documents does not necessarily mean someone should delay contacting a lawyer. In many situations, timing matters, and a lawyer or legal services provider can explain what information may be needed next.