If your Virginia land has unpaid property taxes, you might be wondering whether you can even sell it - or whether the county will just take it before you get the chance.
The short answer is yes, you can sell land with back taxes in Virginia. The taxes get paid from the sale proceeds at closing. You don't need to come up with the money upfront, and you don't need to resolve the tax situation before you find a buyer.
Here's what you need to know.
How Virginia Property Taxes Work on Vacant Land
Virginia counties assess property taxes annually based on the assessed value of the land. For vacant land, the tax bill is typically modest - often a few hundred dollars per year for a rural parcel - but if it goes unpaid for several years, the balance can grow significantly with penalties and interest.
Most Virginia counties charge interest on delinquent taxes at a rate of 10% per year, plus a penalty of up to 10% of the unpaid amount. A $300 annual tax bill that goes unpaid for five years can easily become $2,000 or more by the time you add up the interest and penalties.
What Happens If You Don't Pay Virginia Land Taxes
Virginia law gives counties the authority to sell tax-delinquent properties to recover unpaid taxes. The process varies by county, but generally:
After one year of delinquency, the county can begin the process of placing a lien on the property. After two or more years of delinquency, the county can initiate a tax sale proceeding through the circuit court.
A tax sale doesn't happen overnight. There are notice requirements, court filings, and a redemption period during which the owner can pay the taxes and stop the sale. But if you've received notices from your county treasurer about delinquent taxes, it's worth taking seriously.
The good news is that selling the property - even to a cash buyer at a below-market price - is almost always better than letting the county take it through a tax sale, where you'd receive nothing.
How Back Taxes Are Handled at Closing
When you sell Virginia land with delinquent taxes, here's what happens:
The title company or closing attorney contacts the county treasurer to request a payoff statement. This document shows the total amount owed, including principal, interest, and penalties, as of the anticipated closing date.
At closing, the payoff amount is deducted from the sale proceeds and paid directly to the county. You receive whatever is left after the taxes and any other liens are paid.
You don't need to pay the taxes before the sale. You don't need to negotiate with the county. The title company handles all of it as part of the normal closing process.
Land Use Tax and Rollback Taxes
If your Virginia land is enrolled in the land use assessment program (also called the land use tax or agricultural use tax), there's an additional consideration when you sell.
Virginia's land use program allows landowners to have their property assessed at its agricultural or forestry use value rather than its market value, which results in a lower annual tax bill. When the land is sold or converted to a non-qualifying use, the county can assess "rollback taxes" - the difference between what was paid under the land use program and what would have been owed at full market value, going back up to five years.
Rollback taxes are also paid from the sale proceeds at closing, but they can be substantial. If your land is in the land use program, ask the county assessor's office for an estimate of the rollback tax before you accept an offer, so you know what to expect.
What If the Back Taxes Exceed the Land's Value?
This is rare but it does happen, particularly with small parcels that have been neglected for many years. If the accumulated taxes, interest, and penalties exceed what a buyer is willing to pay for the land, you may be in a difficult position.
In that case, your options are limited:
You can negotiate directly with the county treasurer. Some Virginia counties will consider a compromise or payment plan for delinquent taxes, particularly if the alternative is a tax sale that might not recover the full amount anyway.
You can deed the property to the county in lieu of taxes. Some counties will accept a deed in lieu, which eliminates your tax liability but also means you receive nothing for the land.
You can let the tax sale proceed. This is the worst outcome - you lose the land and receive nothing - but it does end your tax liability.
If you're in this situation, contact us before you give up. We've worked through some complicated tax situations in Virginia and may be able to find a path forward.
Virginia Sellers Advantage Buys Land with Back Taxes
We regularly purchase Virginia land with delinquent property taxes. It's not a dealbreaker for us - it's just a line item on the closing statement.
If your land has back taxes and you want to know what we can offer, fill out our form and we'll get back to you within 48 hours. We'll be upfront about what the taxes will cost you at closing so there are no surprises.
Back Tax Properties We've Purchased
Delinquent tax situations are more common than most people realize, and they're spread across the state. We've purchased back-tax properties in Amelia County, Cumberland County, and Powhatan County, among others. If your property is in one of these counties, we have a good sense of what the treasurer's office process looks like and can factor that into our timeline.