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Property tax foreclosure in Kentucky

Kentucky is a tax lien state. Unpaid property taxes turn into a certificate of delinquency on April 15, and the county clerk can sell that certificate to a private buyer in the summer. The buyer or the county attorney can sue to foreclose one year after the taxes became delinquent, and the home is then sold by a master commissioner in a court case. You can pay off the debt until the sale, and any money left after the sale is paid out by the court.

Ask for help in Kentucky Free HUD counselor: (800) 569-4287

Reviewed against Kentucky law and official sources on October 11, 2026. General information, not legal advice.

The property tax process in Kentucky, step by step

  1. Taxes are due by December 31

    Discount by November 1; penalties start January 1

    You get a 2 percent discount for paying in full by November 1. Taxes paid in January carry a 5 percent penalty, and taxes paid after January 31 carry a 10 percent penalty. Pay the sheriff while you still can, because the costs jump after April 15.

    KRS 134.015

  2. Your bill becomes a certificate of delinquency

    April 15

    The sheriff files unpaid bills with the county clerk, and each becomes a certificate of delinquency that is a lien on your home. It includes the 10 percent penalty and a 10 percent sheriff's add-on, and it earns 12 percent simple interest a year. The Department of Revenue says a clerk fee and a 20 percent county attorney fee are also added.

    KRS 134.122; KRS 134.125

  3. Notices and a payment plan with the county attorney

    Notices by May 15 and June 15

    The Department of Revenue says the county attorney sends notices by May 15 and, if needed, by June 15. At this stage you can ask the county attorney for an installment plan, and a certificate under a plan in good standing cannot be sold to a third party.

    KRS 134.128(2)(c)

  4. The certificate may be sold to a private buyer

    Sales run mid-July through October

    The clerk sells certificates 90 to 135 days after they are filed, after newspaper and website notice. A third party buyer must mail you a notice within 50 days and then every 6 months, and must offer a monthly payment plan if you ask in writing. Its fees are capped by law, so check every bill against KRS 134.452.

    KRS 134.128; KRS 134.490; KRS 134.452

  5. A foreclosure lawsuit can be filed

    1 year after the taxes became delinquent; at least 45 days' notice

    The certificate holder may sue after one year and must do so within 11 years. A private buyer must mail you a warning at least 45 days before suing. Answer the lawsuit and keep paying or negotiating, because you can still pay off the debt before the sale.

    KRS 134.546(1); KRS 134.490(2)

  6. Master commissioner sale and redemption

    6 months to redeem if the price is under two-thirds of appraisal

    The home is appraised and sold by the court's master commissioner, the same way as a mortgage foreclosure. If it sells for less than two-thirds of the appraised value, you have 6 months to buy it back. If no one bids, the commissioner deeds the home to the certificate holder.

    KRS 134.546(5); KRS 426.530

  7. Claim any money left over

    After the court confirms the sale

    The court pays the certificate holders and other liens from the sale money, and whatever is left belongs to you. Ask the master commissioner or circuit court clerk how to file your claim for the excess in the case. If you are 65 or older or disabled, also ask your PVA about the homestead exemption to lower future bills.

    KRS 426.500

Common questions in Kentucky

How long can you go without paying property taxes in Kentucky before foreclosure?

Your bill becomes a certificate of delinquency on April 15, and a lawsuit to foreclose can be filed one year after the taxes became delinquent. The court case and master commissioner sale add more months. Fees and 12 percent interest start piling up from April 15, so it gets expensive fast.

Who do I pay after my Kentucky tax certificate is sold?

You pay the third party buyer, or you can pay the county clerk under the conditions in KRS 134.127. The buyer must send you its legal name, address, mailing address for payments and phone number. If it fails to send the required notices, interest and fees stop growing until it does.

How much can a Kentucky tax certificate buyer charge me?

The buyer can collect what it paid, 12 percent yearly interest, and capped attorney fees before a lawsuit. For a certificate of $350 or less, those fees cannot be more than the certificate amount or $350. A payment plan fee is limited to $8 a month.

What if the state ends up owning my Kentucky home after a tax foreclosure?

If the state, county or a taxing district takes the property, you can still redeem it by paying the clerk what was owed plus costs and 12 percent interest any time before the state deeds it to a new buyer. The statute for that later sale does not say how a former owner gets any extra money. Tyler v. Hennepin County (2023) says a government cannot keep more than it is owed, so get legal help quickly if this happens.

Step by step

More on foreclosure in Kentucky

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in Kentucky

Property tax foreclosure (this page)Claim surplus funds

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Sources for this page

  1. KRS 134.015: Due dates, discounts and penalties
  2. KRS 134.122: Transfer of certificates of delinquency to clerk
  3. KRS 134.125: Interest on certificates of delinquency
  4. KRS 134.128: Sale of certificates of delinquency to third parties
  5. KRS 134.452: Third-party purchaser fees
  6. KRS 134.490: Notices by third-party purchaser; installment plans
  7. KRS 134.546: Action on certificates of delinquency; sale on foreclosure
  8. KRS 134.549: Sale of land obtained by taxing unit; redemption
  9. KRS 393A.040: When property presumed abandoned
  10. KRS 393A.760: Agent of apparent owner
  11. Kentucky Department of Revenue: Delinquent Property Tax
  12. Jefferson County Master Commissioner: FAQs
  13. Kentucky State Treasury: About Unclaimed Property
  14. KRS 426.005, Personal judgment in action to enforce mortgage or lien
  15. KRS 426.006, Other liens to be stated in action to enforce lien
  16. KRS 426.205, Sale of vacant and abandoned real property
  17. KRS 426.260, Motion for possession by purchaser
  18. KRS 426.500, Surplus proceeds of sale
  19. KRS 426.520, Appraisal of real property before judicial sale
  20. KRS 426.522, Public, judicial sale by licensed auctioneer (amended effective July 15, 2026)
  21. KRS 426.525, Mortgage foreclosure forbidden; rights of mortgagee after default
  22. KRS 426.530, Right of redemption
  23. KRS 426.540, Redemption right may be sold; report of sale
  24. KRS 426.560, Newspaper advertisement required in execution and judicial sales
  25. KRS 426.700, Time, place and terms of sale; notice
  26. KRS 426.705, Bond required of purchaser
  27. KRS 424.130, Times and periods of publication
  28. KRS 454.165, Personal judgment against defendant constructively summoned forbidden
  29. KRS 427.060, Homestead exemption; exceptions
  30. KRS 286.2-020, Required disclosure of Kentucky Homeownership Protection Center services
  31. KRS 380.010, Debt adjusting definitions
  32. KRS 380.030, Persons exempt from classification as debt adjuster
  33. KRS 380.040, Persons engaged in debt adjusting: prohibitions and registration
  34. KRS 380.060, Contract, disclosure and debtor's right to cancel
  35. KRS 380.110, Cause of action for violation of KRS Chapter 380
  36. Supreme Court of Kentucky Order 2024-40 (corrected, entered January 21, 2025), AP Part IV, Master Commissioners of the Circuit Court
  37. Jefferson Circuit Court local rules
  38. Jefferson Circuit Court Master Commissioner
  39. Kentucky Homeownership Protection Center, home page (HAF closure notice)
  40. Kentucky Homeownership Protection Center, Homeowner Assistance Fund eligibility page
  41. Kentucky Homeownership Protection Center, Foreclosure Process
  42. Kentucky Homeownership Protection Center, Resources
  43. U.S. Department of the Treasury, Homeowner Assistance Fund
  44. Kentucky Justice Online, Foreclosure (last updated August 20, 2024)
  45. Kentucky Court of Justice, Legal Self-Help
  46. Kentucky Attorney General, Consumer Complaints
  47. Kentucky Department of Financial Institutions, Submit an Online Complaint
  48. Kentucky Bar Association, Lawyer Referral Services
  49. Kentucky Department of Revenue, Homestead Exemption