How to Sell a House With Back Property Taxes in Philadelphia, PA
Yes, you can sell a house in Philadelphia with back property taxes. The unpaid Real Estate Tax, interest, penalties and any city liens are paid from the sale proceeds at closing, and the buyer receives clear title. The fastest path is a direct cash sale to a local buyer such as We Buy Houses Philadelphia, which can close in as little as 7 days, well inside the city’s tax foreclosure timeline. Call 215-883-4833 for a no-obligation offer.
Falling behind on Real Estate Tax does not take away your right to sell. In Philadelphia, the City files a lien for unpaid taxes, and that lien must be satisfied before ownership can transfer. In practice that means the balance is paid out of your sale proceeds at the settlement table. This guide explains how Philadelphia property taxes work, what happens when they go unpaid, what the City offers homeowners who are struggling, and how a direct sale to We Buy Houses Philadelphia resolves tax debt in days rather than months.
How Do Property Taxes Work in Philadelphia?
Philadelphia charges one combined Real Estate Tax at 1.3998 percent of assessed value, made up of a City portion and a School District portion. The rate has not changed since 2016 and the City has confirmed it will stay the same for 2027. Bills are due once a year on March 31, according to the City of Philadelphia Real Estate Tax page.
The Office of Property Assessment (OPA) sets each property’s value, and the Department of Revenue bills it. New citywide assessments for 2027 were mailed in mid 2026, and many rowhome owners in neighborhoods like Fishtown, Point Breeze and Brewerytown saw assessed values climb. When the assessment rises and the owner’s income does not, a tax bill that was manageable can become one that is skipped.
Most owners with a mortgage pay through escrow. Owners who hold the home free and clear, including many heirs who inherited a family rowhome, pay the City directly, and that is where balances most often slip.
What Happens When Philadelphia Property Taxes Go Unpaid?
Unpaid Real Estate Tax follows a fixed sequence: interest and penalty during the year, a lien and a 15 percent addition after December 31, collection notices, and eventually a sheriff sale. The sequence is documented by Philadelphia Legal Assistance and in the City’s own tax foreclosure warning letters.
- April 1 onward: The bill is delinquent. Interest and penalty begin accruing monthly.
- After December 31: The 15 percent addition is folded into the principal and a tax lien is filed against the property, not just against you personally.
- Collection: The City or its contracted collection firms send notices. Property inspection costs and legal fees can be added to the balance.
- Lawsuit and sheriff sale: If no payment or agreement is reached, the City can sue to foreclose the lien and list the property at a monthly tax sheriff sale, where it is sold to the highest bidder.
- Redemption: Under the Pennsylvania Municipal Claims and Tax Liens Act, an owner of a continuously occupied home may petition to recover it within nine months of the sale by paying what the buyer paid plus costs. Vacant properties do not get that window.
Real Estate Tax is not the only charge the City can lien. The City’s tax foreclosure warning notes that water and sewer bills, commercial trash fees, and Licenses and Inspections (L&I) abatement and demolition invoices can also become liens. On an older North Philadelphia or Kensington rowhome, a title search often turns up two or three of these stacked together.
Can You Sell a House in Philadelphia With Back Taxes?
Yes. A tax lien does not stop a sale; it changes how the closing is funded. Every buyer, whether a family using a mortgage or a cash investor, needs clear title. The title company orders a tax certification and lien search, lists every City claim on the settlement statement, and pays those claims directly from the purchase price before you receive the remainder.
Two conditions have to be true for the sale to work:
- The sale price must cover the taxes, liens, any mortgage payoff and closing costs. If it does, the deal closes normally and you walk away with the difference.
- The closing must happen before the sheriff sale date. Once the property is sold at auction, you are no longer the seller.
If the debt is larger than the home’s value, selling alone will not clear it, and you should speak with a housing counselor or attorney about a payment agreement or short payoff. For the majority of Philadelphia homeowners, though, there is still equity in the house, and a sale resolves the debt in one transaction.
What Relief Does the City of Philadelphia Offer Before You Sell?
Philadelphia has three programs that can lower or spread out a tax balance, and you should know about them before deciding to sell. The City summarized them in its 2027 assessment and tax relief announcement.
| Program | What it does | Who it fits |
|---|---|---|
| Homestead Exemption | Removes a fixed portion of assessed value from the taxable amount for owner-occupied homes. Every homeowner qualifies; you apply once. The 2027 application deadline is December 1, 2026. | Owner-occupants who plan to stay |
| Owner-Occupied Payment Agreement (OOPA) | Income-based monthly plan for past-due Real Estate Tax. No down payment is required, some households qualify for a zero monthly payment, and enrollment pauses enforcement while payments are made. | Owner-occupants who want to keep the house and can commit to a plan |
| Current-year installment plan | Splits the current year’s bill into monthly payments. Application deadline is March 31. Limited to seniors and income-qualified owner-occupants. | Owners who are current but struggling with the new bill |
None of these programs apply to a vacant house, an inherited house you do not live in, or a rental. That is exactly the situation in which many Philadelphians decide the cleanest fix is to sell.
What Are Your Options for Selling With Property Taxes Owed?
You have four realistic paths, and they differ mainly in speed and certainty.
| Option | Typical timeline | Cash needed up front | Risk |
|---|---|---|---|
| Pay the balance, then list | Immediate payoff, then 65 or more days on market plus 30 to 45 days to close | Full tax balance | You must have the money today |
| Enter OOPA, then list later | Months to years | None | Only for owner-occupants; a listing can still take months |
| List with an agent, pay at closing | Four to six months from decision to payout | None, but repairs and showings expected | Buyer financing can fall through; lien keeps growing |
| Sell directly to We Buy Houses Philadelphia | Written offer within 24 hours of a walkthrough, close in as little as 7 days | None | No financing contingency; taxes paid at the table |
The timing column matters more than it looks. Interest, penalty and collection fees keep accruing every month a listing sits, and a sheriff sale date does not wait for a buyer’s appraisal.
How Does the Philadelphia Realty Transfer Tax Affect Your Proceeds?
Philadelphia’s combined realty transfer tax is 4.578 percent of the sale price as of July 1, 2025, which is among the highest in the country. The City portion is 3.578 percent and the Commonwealth adds 1 percent, per the City’s transfer tax notice. Custom in Philadelphia is to split it evenly between buyer and seller, but it is negotiable.
When you compare offers, ask every buyer in writing who pays transfer tax and whether they cover title and settlement fees. A cash offer that covers your closing costs can net you more than a higher-looking offer that leaves you paying half the transfer tax plus a commission.
Property taxes are also prorated at closing. You are responsible for the share of the current year up to the settlement date, and the buyer takes the rest. The title company calculates this on the settlement statement alongside the lien payoff.
How Does a Cash Sale Clear Back Taxes in Philadelphia?
A direct cash sale removes the two things that slow a traditional sale with a lien: lender underwriting and repair negotiations. Here is how the We Buy Houses Philadelphia process works for a home with tax debt.
- Request an offer. Call 215-883-4833 or submit the address through the online cash offer form. Tell us you are behind on taxes; it does not change whether we buy, only how we structure the closing.
- One walkthrough. A local buyer views the property once. No cleaning, no repairs, no staging. Tenants and belongings can stay.
- Written cash offer within 24 hours. The offer accounts for condition and realistic repair costs. There are no commissions or hidden fees, and closing costs are covered.
- Payoff coordination. Our title company pulls the City tax certification and the current payoff from the Philadelphia Tax Center, including interest, penalty and any water or L&I liens, so the numbers at closing are exact.
- Close on your date. Settlement at a local Philadelphia title company in as little as 7 days, or later if you need time to move. The liens are paid from proceeds, title transfers clean, and you receive the balance.
Behind on Philadelphia Real Estate Tax and worried about the next notice? Call 215-883-4833 or contact We Buy Houses Philadelphia for a written cash offer. We buy in any condition, cover closing costs, and can settle before a sheriff sale date.
When Does Selling for Taxes Make the Most Sense in Philadelphia?
The homeowners who most often sell because of taxes are the ones the City’s relief programs do not reach. Philadelphia has one of the oldest housing stocks in the nation, with about 41 percent of units built before 1940, and that age shows up as tax debt in predictable ways.
- Inherited rowhomes. A parent’s home in North, West or Southwest Philadelphia passes to several heirs, nobody lives in it, and the tax bill goes unpaid while the family sorts out the estate. See our guide to selling an inherited house in Philadelphia.
- Vacant properties. A house that sits empty gains L&I violations and water liens on top of taxes, and vacant homes do not qualify for redemption after a sheriff sale.
- Tired landlords. A rental that stopped paying for itself is now behind on taxes, and the owner wants out without evicting anyone.
- Pre-foreclosure plus tax debt. When a mortgage default and a tax lien happen at the same time, a fast closing can satisfy both. Read more about selling a house in pre-foreclosure in Philadelphia.
- Homes that need work. If the house also needs a roof, wiring or a new boiler, listing it means spending money you do not have. Selling as is avoids that entirely.
Why Do Philadelphia Homeowners Choose We Buy Houses Philadelphia?
We Buy Houses Philadelphia is the local office of WeBuyHouses.com, a brand that has purchased homes nationwide since 1997 and carries BBB accreditation with an A+ rating. The Philadelphia office is led by Igor, a Philadelphia resident who bought his first house at 19 and brings 18 years of banking, insurance and investment experience to every offer.
- Local pricing knowledge from Germantown to South Philly, not a national algorithm
- Written offers with no commissions, no fees and seller closing costs covered
- Title company coordination on tax, water and L&I payoffs so nothing surprises you at settlement
- Flexible closing dates and the option to leave unwanted belongings behind
- Service across the city, from North Philadelphia to Montgomery County and the Poconos
This article is general information about Philadelphia tax procedures, not legal or tax advice. If you have received a foreclosure complaint or a sheriff sale notice, speak with an attorney or a housing counselor about your deadlines while you evaluate a sale.
Frequently Asked Questions
Can I sell my house in Philadelphia if I owe back property taxes?
Yes. Unpaid Real Estate Tax becomes a lien on the property, and that lien is paid from your sale proceeds at closing. As long as the sale price covers the taxes, any mortgage and closing costs, the sale closes normally and you receive the balance.
What happens to unpaid property taxes when a house is sold in Philadelphia?
The title company orders a City tax certification, lists every tax and municipal lien on the settlement statement, and pays the City directly from the purchase price before releasing the remaining funds to the seller. The buyer receives clear title.
When does Philadelphia file a tax lien for unpaid Real Estate Tax?
Real Estate Tax is due March 31. If it is still unpaid after December 31 of the same tax year, a 15 percent addition is added to the principal and the City files a lien against the property.
How long before a Philadelphia house with back taxes goes to sheriff sale?
There is no single fixed date. After the lien is filed, the City sends notices and may file a lawsuit to foreclose the lien. Properties are then listed at monthly sheriff sales. Owners usually have months, not weeks, but the only way to know your timeline is to check your account at the Philadelphia Tax Center or respond to the City’s notices.
Can I get my Philadelphia house back after a tax sheriff sale?
Possibly. Under the Pennsylvania Municipal Claims and Tax Liens Act, the owner of a continuously occupied residential property may petition the Court of Common Pleas to redeem it within nine months of the sale by paying the purchase price plus costs. Vacant properties are not eligible.
What is an OOPA and can it stop a tax foreclosure in Philadelphia?
An Owner-Occupied Payment Agreement is an income-based monthly plan for past-due Real Estate Tax offered by the City. It requires no down payment and pauses enforcement while you make payments. It is only available if you own and live in the home as your primary residence.
How much is the Philadelphia transfer tax when I sell?
The combined realty transfer tax is 4.578 percent of the sale price as of July 1, 2025 (3.578 percent City plus 1 percent Commonwealth). It is customarily split between buyer and seller but is negotiable, so confirm in writing who pays it.
Do cash home buyers purchase Philadelphia houses with tax liens?
Yes. We Buy Houses Philadelphia regularly buys homes with Real Estate Tax liens, water liens and L&I liens. The liens are paid from the purchase price at closing, and because there is no lender, the sale can close in as little as 7 days.
Will I still owe taxes after I sell if the house is worth less than the debt?
If the sale price does not cover the full tax balance and other liens, the shortfall does not disappear at closing. In that situation, talk with a housing counselor or attorney about a payment agreement or a negotiated payoff with the City before you sell.
Should I pay off the back taxes before listing or let them be paid at closing?
If you have the funds, paying first removes the lien and simplifies the sale. If you do not, paying at closing is routine and does not raise your sale price or lower it. The main cost of waiting is that interest, penalty and collection fees keep growing until the closing date.
Sell Your Philadelphia Home Even If You Owe Property Taxes
You do not have to clear a Philadelphia tax lien before you can move on. We Buy Houses Philadelphia will make a fair, written cash offer on your home in its current condition, coordinate the tax and lien payoffs through a local title company, cover closing costs, and close on the date you choose, in as little as 7 days. Call 215-883-4833 now or contact us online to request your no-obligation offer. Locally led, BBB accredited through WeBuyHouses.com, and serving every Philadelphia neighborhood and surrounding county.