Missouri Property Tax Problems – Complete Guide

1. Pay Before the Sale

Pay all delinquent taxes, penalties, interest, and costs before the tax sale date.

This is the cheapest option. You'll owe the back taxes plus 2% monthly interest, penalties, and collection fees – but this is far less than redeeming after a sale. Contact your county Collector for exact amount due.

2. Payment Plan (Pre-Sale)

Some counties offer payment plans for delinquent taxes before a sale occurs.

Availability varies by county. Contact your Collector's office to ask about options. Payment plans are generally NOT available during the redemption period after a sale.

3. Redeem After Collector's Sale

If your property was sold at a Collector's Sale, you have 1 year to redeem.

You must pay the sale price plus 10% interest per year plus any subsequent taxes the purchaser paid. Payment goes to the county Collector, who refunds the tax sale purchaser.

4. Sell the Property

If you have equity, selling the property pays off tax debt and preserves remaining value.

A sale can pay off delinquent taxes, redeem from tax sale if needed, and leave you with remaining equity. This is often better than losing the property entirely at tax sale.

5. Claim Surplus Funds

If you already lost property at Land Tax Sale, you may be owed surplus money.

If your property sold for more than the taxes/costs owed at a Land Tax Sale, the excess belongs to you. You must file a claim with the court, typically within 2 years of the sale.

What happens if I don't pay property taxes in Missouri?

When property taxes go unpaid past January 1st, they become delinquent and start accruing interest and penalties. If still unpaid, the county will sell the tax lien at a Collector's Sale (usually in August). If the lien isn't redeemed within 1 year, the buyer can apply for a Collector's Deed. For properties delinquent 3+ years, a Land Tax Sale may occur, which actually transfers ownership.

What is a Collector's Sale vs a Land Tax Sale in Missouri?

A Collector's Sale (also called First and Second Offering) sells only the tax LIEN – an investor pays your back taxes and you owe them instead. You still own the property and have 1 year to redeem. A Land Tax Sale (Third Offering) is a judicial sale that transfers actual OWNERSHIP of the property. It occurs for properties delinquent 3+ years that didn't sell at previous sales.

What is the redemption period for Missouri tax sales?

For Collector's Sales: You have 1 year from the sale date to redeem by paying the purchase price plus 10% interest plus any subsequent taxes the purchaser paid. For Land Tax Sales: The redemption period varies by county but is typically 90 days to 1 year. After the redemption period expires, you lose all rights to the property.

How much does it cost to redeem property after a tax sale?

To redeem, you must pay: (1) The tax sale purchase price, (2) Interest at 10% per year, (3) Any subsequent taxes the purchaser paid with their interest, (4) Recording fees, (5) Other statutory costs. The total can be 50-100% more than the original taxes owed. Contact your county Collector for exact amounts.

Can I get surplus funds from a Missouri tax sale?

Possibly, but only from Land Tax Sales (not Collector's Sales). If your property sells for more than the taxes, penalties, interest, and costs owed, you may be entitled to the surplus. Missouri law (RSMo 140.230 and 140.405) requires notice to former owners. You typically must file a claim with the court within 2 years.

How is a tax sale different from mortgage foreclosure?

Tax sales are conducted by the COUNTY to collect unpaid PROPERTY TAXES – you have redemption rights AFTER the sale (1-2 years). Mortgage foreclosures are conducted by your LENDER to collect unpaid MORTGAGE PAYMENTS – there is NO redemption period after sale in Missouri. These are completely different processes with different timelines and rights.

When do Missouri counties hold tax sales?

Most Missouri counties hold Collector's Sales (annual tax lien sales) in August, typically the 4th Monday. Land Tax Sales occur at various times. Jefferson County typically holds sales in August. St. Louis County holds them in August. St. Louis City holds them in August-September. Contact your county Collector for specific dates.

Can I set up a payment plan for delinquent property taxes in Missouri?

It depends on the county and timing. Some counties offer payment plans BEFORE a tax sale occurs. Once property is sold at tax sale, you must redeem in full – payment plans are generally not available during the redemption period. Contact your county Collector early to ask about options.

What is a tax lien certificate in Missouri?

A tax lien certificate is what an investor purchases at a Collector's Sale. It represents the tax debt, not ownership of the property. The certificate holder earns 10% interest if you redeem. If you don't redeem within 1 year, the certificate holder can apply for a Collector's Deed, which transfers ownership.

Can I stop a tax sale before it happens?

Yes. Pay your delinquent taxes in full before the sale date. You'll owe the back taxes plus interest, penalties, and collection costs, but this is almost always cheaper than redeeming after a sale. Contact your county Collector as soon as possible to get the exact amount due.

What happens to my mortgage if my property is sold at tax sale?

Your mortgage doesn't disappear – you still owe it. However, tax liens are superior to mortgage liens in Missouri. If you lose the property to a tax sale and don't redeem, the mortgage lender loses their security. This is why mortgage servicers often pay delinquent taxes on your behalf (and bill you).

Are there any tax exemptions or relief programs in Missouri?

Yes. Missouri offers several programs: (1) Missouri Property Tax Credit ("Circuit Breaker") for seniors/disabled with limited income, (2) Homestead Preservation Act for certain eligible homeowners, (3) Individual county programs may exist. Contact your county Assessor and Collector to learn about available programs.