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Behind on property taxes in Philadelphia? How tax foreclosure works
Updated October 2026
You can lose a Philadelphia house over unpaid Real Estate Tax even if there's no mortgage at all. The good news is that the City has more programs to help owners catch up than most people know about, and you have options right up until a sheriff sale.
Live in the home? Call the Philadelphia Department of Revenue at (215) 686-6442 and ask about an Owner-Occupied Payment Agreement (OOPA). The payment is based on your income, there's no down payment, and the City says contacting them about one stops the process to sell your home. For free help, call the Save Your Home Philly Hotline at 215-334-HOME (4663).
The tax foreclosure timeline
- March 31
Real Estate Tax is due
Philadelphia property taxes are due once a year, by March 31.
- From April 1
Penalties start adding up
Unpaid tax picks up additions of 1.5% a month for the rest of the year.
- January 1
The tax becomes delinquent
The maximum 15% addition is applied, the debt is registered as delinquent, liens are filed, and the City can start the process of selling the home at sheriff sale. Interest, penalties and legal fees keep growing from here.
- Court case
Petition and conference
Everyone with a recorded interest in the property must be served. Homeowners are typically scheduled for a conference in Room 676 of City Hall, and outreach workers encourage them to call the Save Your Home Philly Hotline before it.
- Sheriff sale
The house is auctioned
If nothing is worked out, the Sheriff sells the property to the highest bidder. Philadelphia's sheriff sales are currently held online through Bid4Assets.
- After the sale
Nine-month redemption window
For a home that was continuously occupied, the former owner can petition the court to get it back by paying what's owed, within nine months after the sheriff's deed is recorded. Vacant and investment properties don't get this right.
Programs that can help you keep the house
- Owner-Occupied Payment Agreement (OOPA): monthly payments based on your income, no down payment, for owners who live in the home.
- Real Estate Tax installment plan: a payment plan for people who can't pay the full amount at once.
- Homestead Exemption: lowers the taxable value of the home you live in. You can have it while on an OOPA.
- Senior citizen and low-income tax freezes: lock your tax bill so it doesn't go up if you qualify.
- Longtime Owner Occupants Program (LOOP): limits big tax increases for longtime owners whose assessments jumped.
- Real Estate Tax deferral: lets some owners put off part of a tax increase.
Rules and income limits change, so confirm the details with the Revenue Department or a city-funded housing counselor.
Selling a house with back taxes
If keeping the house isn't realistic, a sale before the sheriff sale protects your equity. At a tax sale, you lose control over the price. When you sell, you choose the buyer and the closing date, and you keep what's left after the debts are paid.
- The title company orders payoff figures for Real Estate Tax, water and sewer, gas and any other liens.
- Those debts are paid at settlement, out of the sale price. You don't need cash up front.
- If a sale date is close, tell us right away. The earlier we know, the more options there are.
Frequently asked questions
Can I sell my house if I owe back property taxes?
Yes. You still own the house until a sheriff sale happens. When you sell, the title company gets a payoff figure from the City and pays the back taxes, penalties and interest out of the sale proceeds. Whatever is left after the mortgage and other liens is yours.
Does a payment agreement really stop a tax sheriff sale?
For owner-occupants, the City says that once you contact the Revenue Department about an Owner-Occupied Payment Agreement (OOPA), it stops the process to sell your home, and you are in good standing as long as you keep up with the agreement.
What happens after a tax sheriff sale?
The buyer receives a sheriff's deed. If the home was continuously occupied as a residence, the former owner can petition the court to get it back by paying what's owed, but only within nine months after the sheriff's deed is recorded. After that, the right is gone.
I inherited a house that owes taxes. What now?
Taxes keep adding up after an owner dies, and the City can still move toward a sale. If the deed is still in a relative's name, the Save Your Home Philly Hotline (215-334-HOME) helps with tangled titles and tax foreclosure. If the heirs want to sell, the estate usually needs to be opened first so someone has authority to sign.
Who do I owe if the City says my debt was sold?
Some older tax debts are collected by U.S. Bank as trustee, with Linebarger as the servicer, instead of the City. Check who holds your debt before you pay or sign anything.