Core Concepts
Tax-Defaulted Property
California's term for a property whose taxes were not paid by the end of the fiscal year.
In California, unpaid secured property taxes make the property tax-defaulted at the close of the fiscal year (June 30). The owner can still redeem by paying the defaulted taxes, penalties, and fees.
After five years of default (three years for certain nonresidential commercial property), the Tax Collector gains the power to sell the property.
How it works by state
- California
- Power to sell arises under the Revenue and Taxation Code once the default period passes. The Tax Collector then schedules the property for a public auction.
General information, reviewed 2026-10-12. Not legal advice. Rules change and each county publishes its own sale terms; confirm with the county before bidding.
Related terms
- Power to SellIn California, the point at which the Tax Collector is legally allowed to sell a tax-defaulted property.
- Tax SaleA public sale a local government holds to collect unpaid property taxes, by selling either the property itself or a claim against it.
- Redemption PeriodThe window during which an owner can keep a property by paying the delinquent taxes, interest, and fees.
- Chapter 8 Agreement SaleIn California, a sale of tax-defaulted property directly to a public agency or qualifying nonprofit, without an auction.