Property Tax Liens in NYC and Nassau County: What Homeowners Should Know

General information only, not legal advice. For advice about your situation, talk to a licensed New York attorney or a HUD-approved housing counselor.

New York City

• NYC sells the debt, not the property, to a single authorized buyer. The sale is typically held once a year.
• For most 1-3 family homes and condos, property tax debt can qualify once it's around $5,000 overdue for three years. Other thresholds apply for other property types and for some water/sewer and city charges. Confirm current rules on the NYC Department of Finance website, since thresholds change.
• Before the sale: paying in full or entering a payment agreement keeps you off the list. Disputing a bill alone does not.
• After the sale: within 90 days the City mails the sale terms and the new lienholder's contact information. You'll owe the debt plus interest and a 5% surcharge plus administrative costs. Interest compounds daily at rates that depend on assessed value.
• The lienholder can eventually start foreclosure on the lien if it isn't paid or put on a payment plan. Don't ignore these letters.
• Some homeowners may qualify for a surcharge waiver, and active-duty military can request an exclusion. Check the City's current forms.

Nassau County

• The Nassau County Treasurer conducts an annual tax lien sale, usually held in February.
• Owners can redeem (pay off) a lien before the Treasurer issues a tax deed or a foreclosure action begins. Interest accrues in six-month periods, and the County publishes the formula in its notices.
• Hardship extensions may be available in some cases. Ask the Treasurer's office.

Selling when there's a lien

• The lien is paid from the sale proceeds at closing, so a sale can resolve it.
• A cash buyer can close quickly, which matters when interest is building. Make sure any payoff figure is current and in writing before you sign.
• If the house has a mortgage as well, the mortgage and the lien are both paid from proceeds. Ask the title company for a payoff statement of each.

Free help

HUD-approved counselors and legal aid organizations can help with payment plans and exemptions (for example senior or STAR-related exemptions) that may lower your bill.

Frequently asked questions

Does NYC take my house if I don't pay taxes?

The City sells the debt, not the house. But the new lienholder can eventually foreclose if the debt stays unpaid.

Can I stop a tax lien sale?

Generally by paying in full or entering a payment agreement before the sale. Check the current deadline with NYC Finance.

What if my lien was already sold?

Pay or arrange payment with the new lienholder or its representative. Keep paying new City bills to the City.

Can I sell a house with a tax lien?

Yes. The lien is typically paid off at closing from the sale proceeds.

How do I redeem a lien in Nassau?

Contact the Nassau County Treasurer for an exact payoff figure including interest.

Get your cash offer

Use the button at the top of this page to start. It takes about a minute, there is nothing to sign to get an offer, and you can always compare it with listing or with other buyers.

The Key Buyers · 194 Jericho Tpke, Floral Park, NY 11001 · 516-366-2592. This page is general information, not legal or tax advice, and rules change. Every situation is different. Last updated: October 2026.