Kentucky Property Tax Sale: Certificates of Delinquency, 12% Interest, and the One-Year Clock

A Kentucky property tax sale does not sell your house. The county clerk sells the unpaid tax bill, in the form of a certificate of delinquency, to a private third-party purchaser. You keep title and possession. What changes is who you owe and how fast the balance grows.

Kentucky law runs this on a fixed calendar, and no lawsuit can come until a year after the taxes went delinquent. This guide walks through each step with its statute, so you can plan on your own timeline.

What is a Kentucky property tax sale?

A Kentucky property tax sale is the county clerk's yearly sale of certificates of delinquency, which are unpaid real property tax bills, to third-party purchasers. The purchaser pays the bill to the county and takes over the right to collect it. Ownership of the house does not change at the sale.

The unpaid tax is a personal debt of the owner. It is also a lien that continues until the taxes are paid or an eleven-year period runs out, "regardless of who owns the property" (KRS 134.015). That is why a certificate can follow a house through an inheritance or a sale. The practical result is time, though the balance grows while it passes.

When does an unpaid tax bill become delinquent?

Kentucky property taxes are due by December 31 of the assessment year, and penalties start January 1 (KRS 134.015). The statute sets four payment windows:

• Paid in full by November 1: a 2% discount.
• November 2 to December 31: the face amount of the bill.
• January 1 to January 31: a 5% penalty.
• After January 31: a 10% penalty.

When bills go out late, the Department of Revenue can set an alternative schedule, and some sheriffs publish their own dates. Jefferson County's schedule for bills mailed November 1 runs the discount through December 1 (Jefferson County Sheriff's Office, September 2026). The dates on your own bill control, and paying the sheriff before April 15 is the cheapest way out of a late bill.

April 15: how a certificate of delinquency is created in Kentucky

At close of business on April 15, the sheriff files every unpaid real property tax bill with the county clerk, and each one becomes a certificate of delinquency (KRS 134.122). The certificate already includes the face tax, the 10% penalty, the sheriff's commission, and a 10% sheriff's add-on.

The Department of Revenue describes what comes next: "Interest begins to accrue on the total due at the rate of 1% per month. A 10% county clerk fee and a 20% county attorney fee are also added to the total due" (Kentucky Department of Revenue, September 2026).

As an illustration only, a $1,000 certificate picks up roughly $300 from those two fees before any interest. The clerk quotes the real payoff, and it rises each month.

The May 15 and June 15 notices

The county attorney must send a notice by May 15, and another by June 15 if needed (Department of Revenue). This is the window to call the county attorney's office. Delinquent taxpayers can enter installment plans with the county attorney at this stage.

A plan in good standing does more than spread out the cost. The Department's sale rules must keep a certificate out of the sale when it is under a county attorney payment plan that is in good standing (KRS 134.128). Certificates tied up in county attorney litigation or a bankruptcy claim are held back too.

The Kentucky tax sale timeline, stage by stage

The Kentucky tax sale runs from the sheriff's bill to a possible court sale over more than a year. The table maps each stage, what it costs, and who to call.

What happens at the county clerk's certificate sale?

At the clerk's sale, registered third-party purchasers pay individual certificates of delinquency and receive the right to collect them. Each county's sale falls 90 to 135 days after the sheriff files the unpaid claims, on a statewide schedule the Department of Revenue publishes (KRS 134.128). Most sales happen from mid-July through August, and some run into late October (Department of Revenue).

Purchasers register with the county clerk at least a week ahead. Anyone paying more than five certificates statewide, more than three in a county, or more than $10,000 a year must also register with the Department of Revenue (KRS 134.128(3); KRS 134.129).

Thirty to 45 days before the sale, the clerk publishes a newspaper notice listing each certificate by owner and address, and a $5 advertising fee per certificate is added. Seeing your name there is often the first sign the sale is close.

2026 sale dates in Fayette, Warren, and Jefferson counties

The summer 2026 sales covered 2025 tax bills.

• Fayette County (Lexington): held July 24, 2026, at 11:00 a.m. (Fayette County Clerk, September 2026).
• Warren County (Bowling Green): set for August 26, 2026, at 9:00 a.m. Central (Warren County Clerk, September 2026).
• Jefferson County (Louisville): listed for July 17, 2026, at 3:00 p.m. at Metro Hall (Jefferson County Clerk listing, September 2026). The clerk's page has since moved, so confirm dates directly with the office.

Once a certificate sells, you deal with the purchaser, not the clerk. The Department of Revenue warns of "substantial additional fees" at that stage.

What can a certificate holder charge?

Before any lawsuit, a third-party purchaser can collect only three things: the amount paid for the certificate, 12% simple interest on that amount, and capped prelitigation attorney fees (KRS 134.452). Interest counts any part of a month as a full month (KRS 134.125). The fee caps depend on the size of the certificate:

• $5 to $350: up to 100% of the certificate, no more than $350.
• $351 to $700: up to 80%, no more than $560.
• Above $701: up to 70%, no more than $700.

Fees accrue in steps of up to $175 per notice, no more often than every 90 days. A separate administrative fee of up to $115 for paperwork at the clerk's office can apply. An illustration: suppose a purchaser paid $1,500 for a certificate. One year of 12% interest adds $180, and prelitigation fees top out at $700. Before any suit, the payoff could approach $2,380, plus that administrative fee.

After the 45-day pre-suit notice, litigation fees can follow. Up to $2,000 in documented attorney fees may be treated as reasonable, and a court can allow more.

Payment plans with the purchaser

A registered purchaser holding a certificate bought after June 1, 2012 must offer a monthly installment plan when you ask in writing (KRS 134.490). The processing fee is capped at $8 a month. Missing a payment ends the deal, and the purchaser keeps what was paid and does not have to offer a second plan.

The notices you should receive

The purchaser must mail you a certified notice within 50 days of buying the certificate, then every six months until the pre-suit notice. Each notice must break out the purchase price, interest, and fees, and give the purchaser's name, address, and phone number. A copy goes to each mortgage lender on the house. If the purchaser fails to send the required notice with its contact details, interest and fees stop accruing until proper notice goes out.

The one-year clock: when a purchaser can sue or foreclose

A third-party purchaser can file suit only after one year has passed from the date the taxes became delinquent, and must file within eleven years (KRS 134.546). At least 45 days before filing, the purchaser must send you, and each mortgage lender, a notice by certified mail (KRS 134.490).

That notice must warn that collection may include foreclosure and substantial added fees. For a 2025 bill sold in the summer of 2026, a suit could come in 2027 at the earliest.

The suit can seek a personal judgment for the debt, enforcement of the lien against the house, or both in one case. If the house changed hands in the meantime, the lien still reaches it, and the new owner must be named as a defendant for the judgment to affect that interest.

What a foreclosure judgment and master commissioner sale look like

If the court enters a foreclosure judgment, the circuit court's master commissioner sells the house. Before the sale, two disinterested people from the county appraise it under oath (KRS 426.520).

If the sale brings less than two-thirds of the appraised value, the owner can redeem within six months (KRS 426.530). Redemption means paying the purchase price, 10% annual interest, and the buyer's reasonable upkeep costs. The buyer still gets an immediate writ of possession, so the owner can lose possession while that right runs.

If no one buys at the commissioner's sale, the master commissioner deeds the property to the certificate holder (KRS 134.546). Our guide to stopping foreclosure in Kentucky covers the same court process when a mortgage lender files instead.

Does the homestead exemption help with back taxes?

The Kentucky homestead exemption lowers the assessed value behind future tax bills, but it does not pay off a certificate that already exists. For the 2025 and 2026 tax periods, it removes up to $49,100 from the assessed value of a qualifying owner's house (Kentucky Department of Revenue, November 2024).

To qualify, you must be 65 or older during the year, or classified as totally disabled, and own and maintain the house as your personal residence (KRS 132.810). You apply with the property valuation administrator (PVA) in your county. The Department of Revenue says the exemption saved about $293 million for more than 474,000 elderly or disabled Kentuckians in the 2023 tax year (Kentucky Department of Revenue, November 2024).

As an illustration, a qualifying house assessed at $180,000 would be taxed on $130,900. If you qualify and have not applied, call your PVA.

Selling a house with a certificate of delinquency in Kentucky

You can sell a Kentucky house with a certificate of delinquency against it, because the certificate is a lien and you still hold title. The title search turns it up, and a closing attorney or title company requests a payoff from the clerk or the purchaser. The payoff is then paid from your proceeds at closing, the same way a mortgage balance is. Closing before the 45-day pre-suit notice keeps litigation fees and court costs off the bill.

Weighing the numbers

The tax debt is often small next to the equity. Kentucky's typical house value was $232,577 in August 2026, down 0.4% from a year earlier (Zillow ZHVI, August 2026). Separately, Redfin reported a statewide median sale price of $284,400 in May 2026, with a median of 45 days on market (Redfin Data Center, May 2026).

A listed sale can work when the house shows well and time allows, though the certificate keeps growing through a financed buyer's appraisal and underwriting. For Louisville owners, the Louisville housing market 2026 guide shows how long listings are taking there.

Where a cash offer fits

Propcash is a direct cash homebuyer based in Nashville that makes offers as a principal. You can get a cash offer and see the reasoning behind the number, with the tax payoff shown. Propcash is free for sellers, the house can be sold as-is, and cash closings can happen in as few as 7 days once title is clear. You pick the closing date.

If listing would likely net you more, Propcash can say so and point you to a local agent. We may receive compensation from agents we refer. Heirs holding a house with back taxes can start with selling an inherited house in Kentucky, and more statewide options are on the Kentucky cash offer page.

Frequently Asked Questions

Does a Kentucky property tax sale mean you lose your house?

No. A Kentucky property tax sale transfers the unpaid tax bill, called a certificate of delinquency, to a third-party purchaser, and you keep title and possession. The purchaser can sue only after one year from delinquency and a 45-day certified-mail notice (KRS 134.546 and KRS 134.490), and the purchaser can reach the house itself only through a court judgment.

How much interest does a certificate of delinquency in Kentucky charge?

A Kentucky certificate of delinquency bears simple interest of 12% a year, and any part of a month counts as a full month (KRS 134.125). Before the clerk's sale, that shows up as 1% a month, plus a 10% county clerk fee and a 20% county attorney fee. After a purchaser buys it, interest runs on the amount the purchaser paid, and capped prelitigation attorney fees can be added.

When can a third-party purchaser foreclose on a Kentucky house?

Not until one year has passed from the date the taxes became delinquent (KRS 134.546). The purchaser must also mail the owner and each mortgage lender a certified notice at least 45 days before filing suit (KRS 134.490). For a 2025 tax bill sold in the summer of 2026, that points to 2027 at the earliest.

Can you get a payment plan on delinquent property taxes in Kentucky?

Yes, at two stages. Before the clerk's sale, you can arrange an installment plan with the county attorney, and a plan in good standing keeps the certificate out of the sale (KRS 134.128). After a sale, a registered purchaser must offer a monthly plan on written request, with a processing fee of no more than $8 a month (KRS 134.490).

Can you sell your house after a certificate of delinquency has been sold?

Yes. You keep title while the certificate is outstanding, so you can sell the house and have a closing attorney or title company pay the certificate holder from the proceeds. The lien stays with the property no matter who owns it (KRS 134.015), so it has to be paid for the buyer to take clear title. Closing before the 45-day pre-suit notice keeps litigation fees out of the payoff.

How do you find out who holds your certificate of delinquency?

The purchaser must send you a certified-mail notice within 50 days of buying the certificate, then another every six months until the pre-suit notice (KRS 134.490). Each notice lists the purchaser's legal name, address, and phone number, and breaks the balance into price, interest, and fees. The purchaser must also keep its contact details current in the county clerk's records.