Property tax foreclosure in Tennessee

The property tax process in Tennessee, step by step

1. Taxes become delinquent and interest starts

   March 1 after the October due date

   Interest of 1.5 percent is added on March 1 and again on the first day of each month after that. You can still pay the county trustee, with interest, until the taxes are turned over for a lawsuit.

   Tenn. Code Ann. §§ 67-5-2008, 67-5-2010(a)(1)

2. Apply for tax relief or a tax freeze

   Each year, by your county's deadline

   The state pays part of the property tax on the home for qualifying low-income older homeowners, disabled homeowners and disabled veterans. In counties that adopted the Property Tax Freeze, qualifying older homeowners can keep their tax at a base amount. Ask the county trustee how to apply.

   Tenn. Code Ann. §§ 67-5-701 et seq., 67-5-705

3. The delinquent tax lawsuit

   The list goes to the tax attorney between February 1 and April 1

   The delinquent tax attorney sues in chancery or circuit court, and notice can be sent to you by certified mail. If you pay the taxes, interest, penalty and court costs, the case ends as to your property without a court order. The court cannot order the taxes paid in installments.

   Tenn. Code Ann. §§ 67-5-2404, 67-5-2405, 67-5-2415

4. Tax sale notice and auction

   After the court orders the sale

   The clerk advertises the sale and must send notice by certified mail to the owner and others with an interest who can be found. The clerk bids the amount owed for the county if no one bids that much.

   Tenn. Code Ann. §§ 67-5-2501, 67-5-2502

5. Order confirming the sale and possession

   When the court enters the order

   The order confirming the sale gives the buyer the right to possession as soon as it is entered, and the buyer can ask the court for a writ of possession. A suit to set aside the sale generally must be filed within one year of that order, and never more than three years.

   Tenn. Code Ann. §§ 67-5-2503, 67-5-2504(d)

6. Redeem after the sale

   1 year, or 90 days if more than 3 years delinquent (orders on or after July 1, 2026)

   For sales confirmed on or after July 1, 2026, the redemption period is one year if the taxes were delinquent three years or less, and 90 days if longer; older orders used a 1 year, 180 day or 90 day scale. To redeem, pay the clerk the taxes, interest, costs and 12 percent a year interest on the buyer's price, then file a motion to redeem in the same case before the deadline.

   Tenn. Code Ann. § 67-5-2701; 2026 Tenn. Pub. Acts ch. 971

7. Claim excess proceeds by motion

   Any time after the confirming order, until the money goes to the state

   File a verified motion in the tax sale case and serve everyone with an interest at least 30 days before the hearing. Later taxes and lienholders, such as a mortgage lender, are paid first, then the former owner who was a defendant or that owner's heirs. Unclaimed excess goes to the state's unclaimed property program, but not until at least one year after the redemption period ends.

   Tenn. Code Ann. § 67-5-2702

Common questions in Tennessee