California Property Tax Auction: The 5-Year Clock, Your Redemption Deadline and Excess Proceeds

I talk with owners in Redding, Anderson, and Red Bluff who have been behind on property taxes for years, and with adult children who found a notice in a parent's mail. A long illness, a fixed income, or a house that sat empty can get a bill this far. I'm a home buyer, not a lawyer or the tax collector. This page explains California's tax-sale clock in plain English. This is general information, not legal advice. Call your county tax collector for your exact amount and deadline, and talk to a California real estate attorney about your situation. Behind on this year's taxes, not years behind? Start with the liens page.

How a house becomes tax-defaulted

At 12:01 a.m. on July 1, unpaid property taxes, penalties, and costs are declared in default. That rule is Revenue and Taxation Code section 3436. The State Controller's Tax Collectors' Reference Manual, chapter 6000, describes the same July 1 default.

In Shasta County, the default is noted on the annual tax statement. The next year, Shasta publishes the defaulted list in a newspaper once a week for three weeks. See the county's tax-defaulted property page.

Heirs often find years of unpaid taxes when they open a parent's house.

The 5-year power to sell

Five years after a home becomes tax-defaulted, the tax collector gets the power to sell it. Nonresidential commercial property can reach that point after three years, and a county may choose five years for that property instead (section 3691(a); State Controller Chapter 7 FAQ).

After three years, a city, county, or qualifying nonprofit can request that residential property be offered at auction for a public benefit or for low-income housing, and so can a recorded nuisance-abatement lienholder (sections 3691(b) and 3692.4).

Shasta County records a Notice of Power to Sell when a home reaches that point.

If the home was damaged in a declared disaster and has not been substantially repaired, the five-year period is tolled until five years have passed from the date of the damage (section 3691(a)). Ask the tax collector whether this applies.

The notice before an auction

Not less than 45 days, and not more than 120 days, before the sale, the tax collector sends notice by certified mail to the owners and the lienholders of record. Section 3701 says the notice states the date, time, and place of the sale, the amount required to redeem, the deadline, and the right to claim excess proceeds.

The sale can still be valid even if you didn't get the notice, so don't wait for the mail. Call the tax collector and ask whether your parcel is on a sale list.

Redemption

Redemption means paying all of the defaulted taxes, penalties, fees, and costs in full. I do not estimate that figure. Your county tax collector is the one who can tell you the amount on your parcel.

The right to redeem ends at the close of business on the last business day before the sale. Section 3707(a)(1) is that rule. Shasta County says the hour is 5:00 p.m. A payment sent by mail must be received by then. A postmark is not enough (section 3707(b)).

Only credit/debit cards (accepted online, by phone 844-784-9715, or in office), cash or cashier's checks are accepted when redeeming tax defaulted property within 3 weeks of the auction.

That sentence is from Shasta County's tax-defaulted property page. Shasta's auction page says redemption payments after January 1 must be cash, cashier's check, money order, or card, and that personal checks are not accepted. Call (530) 225-5511 to confirm what the office will take for your date.

If the deadline passes and the property sells, the owners lose all rights in it (section 3707(e)). If the property is not sold, the right to redeem comes back (section 3707(d)).

Assessed owners of auctioned property MAY NOT purchase their own property.

Shasta prints that rule on its public online property tax auction page.

The 5-year installment plan (only before power to sell)

You can start an installment plan of redemption until 5 p.m. on the last business day before the tax collector gets the power to sell. You cannot start one once the property is subject to the power to sell (section 4217; State Controller manual, chapter 5000).

The first payment is at least 20 percent of the redemption amount, plus the current taxes (section 4219). Each year after that, the payment is 20 percent or more, plus interest of 1.5 percent per month on the unpaid balance, and the current taxes have to be paid by April 10. That schedule is on the State Controller's form 5-02. While the plan stays current, the property cannot become subject to the power to sell (section 4218). If the plan defaults, a new one cannot be started until the next July 1.

Shasta County charges a startup fee and does not publish the amount, so I will not guess it. A plan cannot be opened after the property is Subject To Power To Sell. Shasta asks you to contact your lender first. That is on the defaulted taxes installment plan page.

Tehama County says you may start a plan before 5:00 p.m. on June 30 of the fifth year after default, and before a Notice of Power to Sell is recorded. Tehama's fee is $75.00, plus at least 20 percent of the amount due, plus the current taxes. That is on Tehama's installment plan application.

If property is not fully redeemed, it will be eligible for sale at the public auction.

That is Shasta's line when the taxes are not paid in full. If you are earlier than a power-to-sell notice, start with the liens page.

What happens at a California tax auction

The county sells the property itself, at a public auction in person or online, or by sealed bid. The Board of Supervisors has to approve the sale. The Chapter 7 FAQ describes that, along with sections 3691, 3692, and 3694. Tehama County says it does not sell tax liens. Anyone may bid, regardless of earlier liens on the property (section 3691(a)). A tax sale is different from a lender's foreclosure.

Shasta's auction is online. The next one is Friday, February 26, 2027, from 5:00 a.m. to 3:00 p.m. Shasta posts a "Power to Sell 2027 Auction" document on its Tax Auction page. Open that page and check whether your parcel is listed.

Tehama's last auction was October 25–26, 2023, and it was online. Tehama has said it is tentatively planning its next auction for the first half of 2027; check its tax sale page. Butte County owners: check the Butte County Treasurer-Tax Collector's tax sale page.

Excess proceeds

If the sale brings in more than the taxes and the costs, the county holds the extra. Those are excess proceeds. Your county, not this page, has the figure for your parcel. Parties of interest can file a claim within one year after the tax deed is recorded. A claim postmarked by that date is on time (section 4675(a)).

Lienholders of record are paid first. Title holders of record come next. Heirs can claim if the owner has died. The county pays no sooner than one year after the deed is recorded. Assignments of these claims are restricted (section 4675(b)).

Be careful with anyone who offers to "recover" your excess proceeds for a fee. Read what you sign, and ask the tax collector or an attorney.

Excess proceeds come after you've lost the house, and can take a year or more. Any money left over usually goes much further if you sell, or pay off the taxes, before the deadline.

Your options before the auction

1. Redeem in full, by paying the tax collector everything owed before the redemption deadline.
2. Ask about the five-year installment plan, only if the property is not yet subject to the power to sell.
3. Talk with a California real estate attorney about title, an estate, or bankruptcy. I don't name attorneys.
4. Sell before the deadline, if every owner on title agrees.

If every owner on title agrees and signs, I can make a written cash offer, reviewed case by case. The back taxes are paid out of the sale through the title company. The sale has to close and the taxes have to be paid before the county's redemption deadline, and I can't promise that will happen in time, so call me and the tax collector early. We can close in as little as 7 days once title is clear. You help choose a closing date that fits your move; staying after closing is handled case by case.

The houses I look at are single-family homes, mobile and manufactured homes on their own land (never in a park), rural acreage and small ranches, and duplexes or other small rentals. I don't buy vacant land. An unpermitted addition is reviewed case by case. See how we buy houses and about Derek.

If a PACE or HERO assessment is what put your tax bill behind, read this too.

If you have time and the house is in good shape, listing with a local agent may net more. I'll tell you if that's the case. The comparison is on cash offer vs. listing with a realtor.

Who to call

Call the tax collector for your county before you rely on a date or an amount from this page. Laws, dates, and amounts change.

FAQ

This is general information, not legal advice. Call your county tax collector for your exact amount and deadline, and talk to a California real estate attorney about your situation.

Behind on property taxes? Talk to Derek.

If every owner on title wants a written number, send the address. I'll tell you plainly whether a cash offer makes sense for this house, and I'll tell you if listing looks better.

Or call (530) 999-7694.

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Sources we checked (October 13, 2026)

• Revenue and Taxation Code § 3436 — unpaid taxes, penalties, and costs declared in default.
• State Controller, Tax Collectors' Reference Manual, chapter 6000 — default at 12:01 a.m. on July 1.
• Revenue and Taxation Code § 3691 — five-year power to sell for homes, three years for nonresidential commercial property, disaster tolling, and the three-year request.
• Revenue and Taxation Code § 3692.4 — city, county, or qualifying nonprofit request.
• Revenue and Taxation Code § 3692 and § 3694 — public auction or sealed bid, with Board of Supervisors approval.
• State Controller, Chapter 7 Tax Sale FAQ — the county sells the property at auction or sealed bid.
• State Controller, County Tax Collectors' Reference Manual — table of contents for the manual.
• Revenue and Taxation Code § 3701 — certified-mail notice 45 to 120 days before the sale.
• Revenue and Taxation Code § 3707 — redemption deadline, mailed payments must be received, rights after a sale or if unsold.
• Revenue and Taxation Code §§ 4217, 4218, and 4219 — when an installment plan can start, the effect while it is current, and the first payment.
• State Controller manual, chapter 5000 and form 5-02 — 20 percent payments, 1.5 percent monthly interest, current taxes by April 10.
• Revenue and Taxation Code § 4675 — one-year claim for excess proceeds, and limits on assignments.
• Shasta County, tax-defaulted property — publication of the defaulted list, payment types within three weeks of the auction, and the line that unredeemed property is eligible for auction.
• Shasta County Tax Auction — redemption after January 1, and the Power to Sell 2027 Auction document.
• Shasta County, public online property tax auction — Friday, February 26, 2027, 5:00 a.m. to 3:00 p.m., and the rule that assessed owners may not purchase their own property.
• Shasta County, defaulted taxes installment plan — startup fee with no amount stated, contact your lender, and no plan after Subject To Power To Sell.
• Tehama County Treasurer-Tax Collector and tax sale auctions — Tehama does not sell tax liens; last auction October 25–26, 2023; next auction tentatively the first half of 2027.
• Tehama County installment plan application (June 26, 2025) — start before 5:00 p.m. June 30 of the fifth year, before the Notice of Power to Sell, $75.00 fee plus 20 percent plus current taxes.
• Butte County Treasurer-Tax Collector, property tax auctions — the page Butte owners should check for their own sale.

This is general information, not legal advice. Call your county tax collector for your exact amount and deadline, and talk to a California real estate attorney about your situation. NorCal Home Offer is a home buyer, not a law firm or a government office. This page is general information, not legal advice. Laws, dates and amounts change. Call your county tax collector and talk to a California real estate attorney about your situation. Last reviewed: October 13, 2026.