Key Takeaways
- Tax sales ended December 31, 2025: Since January 1, 2026, parishes auction the tax lien, not the house. You keep ownership and possession, and the certificate holder cannot evict you or collect rent.
- Interest is capped at 1% a month: Unpaid taxes accrue 1% a month, noncompounding. At auction, buyers can push the rate down to a floor of 0.7% a month, and a 5% penalty is added.
- Three years before any lawsuit: A certificate holder cannot sue until the later of three years from recording or six months after a pre-suit notice.
- The payoff has a name: The "termination price" is paid to the parish tax collector. It covers the face value, the penalty, interest, and capped costs.
- Older tax sales keep older rules: A tax sale from 2025 or earlier is redeemed under the law in effect on December 31, 2025, generally within three years of recording.
- A sale can pay it off: A tax lien is paid from the seller's proceeds at closing, the same way a mortgage balance is.
A Louisiana property tax lien auction sells the right to collect your unpaid property taxes, with interest. It does not sell your house. Since January 1, 2026, that is how every parish collects delinquent taxes on real estate. If you are behind on property taxes in Louisiana, the new system gives you more time and a clearer price than the old tax sale did.
Below are the dates, the interest math, and the payoff rules, plus how older tax sales differ. The clock is yours to use.
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Let's chatWhat is a Louisiana property tax lien auction?
A Louisiana property tax lien auction is a public sale, run by the parish tax collector, of the lien that secures your delinquent property taxes. The buyer pays the full tax debt to the parish and receives a tax lien certificate. In return, the buyer earns interest until someone pays the lien off (La. R.S. 47:2154).
The Louisiana Constitution now says it directly: "There shall be no forfeiture of property for nonpayment of taxes" (La. Const. art. VII, sec. 25). Unpaid taxes become "a lien and privilege" on the property instead. That lien ranks ahead of "all other mortgages, liens, privileges, and other encumbrances" (La. R.S. 47:2127).
What the certificate holder can and cannot do
The certificate holder is a creditor, not an owner. The statutory notice says the holder "may not subject you to any eviction proceeding and is not entitled to collect any lease or rental payments" (La. R.S. 47:2153). You can keep living in the house, renting it out, or selling it.
The holder's main right is to be paid. After a long wait, the holder can ask a court to enforce the lien through a seizure and sale. Any judgment is "in rem only," which means it reaches the property and not your other assets (La. R.S. 47:2266.1).
What changed on January 1, 2026
On January 1, 2026, Louisiana stopped selling tax sale title to property and started auctioning tax liens instead. Three laws made the change:
- Act 409 of 2024 (SB 119) amended article VII, section 25 of the constitution. It caps interest at 1% a month and the penalty at 5%, and it requires a period when the lien cannot be enforced.
- Act 774 of 2024 (SB 505) rewrote the tax sale statutes into the tax lien auction system.
- Act 411 of 2025 (SB 55), also effective January 1, 2026, amended the same sections. It added the power to convert adjudicated property into tax lien certificates.
Unpaid 2025 taxes are the first to go through the new auctions. Some parish FAQ pages still describe the old tax sale, so check the date on anything you read.
How your bill is set: 10% assessment and the $75,000 homestead exemption
Residential land and improvements are assessed at 10% of fair market value (La. Const. art. VII, sec. 18). The homestead exemption covers the first $7,500 of assessed value, which equals $75,000 of market value (La. Const. art. VII, sec. 20). It applies to state, parish, and special taxes on your primary residence.
The exemption "shall not extend to municipal taxes," except in Orleans Parish, where it covers state, general city, school, levee, and levee district taxes. The Caddo Parish Sheriff notes it does not apply to taxes levied by cities, towns, or villages in the parish (Caddo Parish Sheriff, September 2026).
Behind on property taxes in Louisiana: the timeline, stage by stage
If you are behind on property taxes in Louisiana, more than three years usually pass between a missed payment and any lawsuit. You can pay the tax collector at every stage until 30 days after you are served with that suit.
| Date | What happens | What it costs | Who to call |
|---|---|---|---|
| December 31 | Taxes due; delinquent the next day (R.S. 47:2127). | 1% a month, noncompounding | Parish tax collector (the sheriff in most parishes) |
| By the first Monday of February | Certified delinquency notice; 20 days to pay before advertising (R.S. 47:2153). | Interest, plus notice and advertising costs | Parish tax collector |
| 90 days after delinquency, advertised by about May 1 | The lien is offered at auction (R.S. 47:2154). | Pay in full until the day before to avoid the penalty | Parish tax collector |
| Auction day (June 30, 2026 in Caddo; July 8, 2026 in East Baton Rouge) | The lien is sold at a monthly rate between 0.7% and 1%. | 5% penalty on the taxes | Parish tax collector |
| Within 30 days of the auction | The certificate is recorded in the mortgage records. | Interest on the face value at the winning rate | Tax collector |
| Years one to three | You keep the house. The holder may pay later tax bills (R.S. 47:2160.1). | Later taxes the holder pays, plus 5% and 1% a month | Tax collector |
| 6 to 12 months before suit | Pre-suit notice with the current payoff (R.S. 47:2156). | Notice costs of up to $500 | Tax collector; a Louisiana attorney |
| Later of three years from recording or six months after notice | The holder may sue to enforce the lien (R.S. 47:2266.1). | Court costs and capped attorney fees | A Louisiana attorney |
| 30th day after the last party is served | Last day to pay the tax collector (R.S. 47:2266.1). | Full termination price, including suit costs | Tax collector; a Louisiana attorney |
| Seven years from recording | With no enforcement action, the lien is extinguished (R.S. 47:2155). | None | Recorder of mortgages |
Parish calendars vary, so ask your tax collector for the dates that apply to your parcel.
How the auction sets your interest rate
At a Louisiana tax lien auction, the price is fixed and the monthly interest rate is what moves. The price is the certificate's face value: the taxes, interest to date, and costs (La. R.S. 47:2154). Buyers offer to accept a lower rate, starting at 1% a month and dropping in steps of one-tenth of a percent.
The statute sets a floor, and no offer below 0.7% a month is accepted. The lowest rate wins, and a tie goes to whoever offered it first. If no one takes the lien, the certificate goes to the parish or other political subdivision at 1% a month.
The 5% penalty
When the lien is offered at auction, a 5% penalty on the taxes is added, and no interest accrues on the penalty (La. R.S. 47:2127). Paying before the auction keeps the penalty off your bill. The delinquency notice says you may pay the amounts due "until the day before the auction" (La. R.S. 47:2153).
Interest after the certificate issues
Once the certificate issues, interest runs on the face value at the winning rate, still noncompounding. Later taxes the holder pays join the debt with their own 5% penalty and 1% a month (La. R.S. 47:2160.1).
After the auction: notices, three years, and suit
After a Louisiana tax lien auction, the certificate holder must wait at least three years from recording before filing suit. The tax collector files the certificate in the parish mortgage records within 30 days of the auction (La. R.S. 47:2154).
The pre-suit notice
At least six months but no more than one year before suing, the holder must send notice to each owner and lienholder (La. R.S. 47:2156). The notice names the holder, states the current termination price, and explains the 30-day deadline after suit. Notice costs of up to $500 can be added.
When suit can be filed
Suit is allowed only after the later of three years from recording or six months after the notices (La. R.S. 47:2266.1). Court costs and attorney fees then join the debt. Except for good cause, attorney fees cannot exceed the greater of 25% of the amount sought or $2,500.
Until close of business on the 30th day after the last party is served, anyone can end the lien by paying the termination price to the tax collector. After that, the collector stops taking payments. Ending the lien then takes the holder's agreement or a court order that sets the price.
Keep your mailing address current with the assessor and tax collector. Every deadline here runs from a notice, a recording, or service of a suit.
How much does it cost to pay off a tax lien certificate?
Paying off a Louisiana tax lien certificate costs the "termination price," which you pay to the tax collector, who sends it to the holder within 30 days (La. R.S. 47:2243). The termination price includes:
- The face value of the certificate (taxes, interest to the auction, and costs)
- The 5% penalty assessed at auction
- The cost of preparing and recording the termination certificate
- Interest on the face value at the winning rate
- The holder's post-auction notice costs, up to $500
- Later taxes the holder paid, with their penalty and interest
The parish can add its own costs, capped at $300 plus filing and recording fees (La. R.S. 47:2244). The tax collector does not have to accept a partial payment on a certificate, so plan for the full amount (La. R.S. 47:2243).
An illustrative example
These figures are illustrative only, not a quote. Say $2,000 in 2025 taxes reached a July 2026 auction with a face value of $2,150, and the 5% penalty adds $100. At 0.8% a month, a year of interest adds about $206, for a payoff near $2,456 before costs.
Pre-2026 tax sales and adjudicated property
A tax sale held in 2025 or earlier is still redeemed under "the law in effect on December 31, 2025" (La. R.S. 47:2241.1). The old tax sale transferred "tax sale title" to a buyer, subject to redemption for the price, costs, a 5% penalty, and 1% a month.
The period is generally three years from recording. The City of New Orleans notes that "a valid blight judgement reduces the redemption period to 18 months." After that period, the City calls it "a civil matter" between owner and purchaser and advises legal counsel (City of New Orleans Bureau of Treasury, May 2026).
Adjudicated property and Act 411 of 2025
"Adjudicated property" is property whose tax sale title went to a parish or other political subdivision before January 1, 2026, usually because no one bought it (La. R.S. 47:2122). Under Act 411 of 2025, a political subdivision may adopt an ordinance that converts adjudicated property into a tax lien certificate (La. R.S. 47:2201(B)).
The time spent adjudicated can count toward the three-year wait, and a parcel converted more than three years after adjudication may be sold once the pre-suit notice rules are met. Some websites describe an "Act 557 of 2025" on this topic. House Bill 557 of 2025 never passed the Senate, and the conversion power came through Act 411.
When the house came through a succession
Heirs often find an old tax sale or adjudication on a family house. Clearing it becomes part of the succession (Louisiana's term for probate) and the title work. The guide to selling an inherited house in Louisiana covers the succession side.
2026 tax lien auction dates in Baton Rouge, Shreveport, and New Orleans
Each parish tax collector sets its own tax lien auction date, and the three largest markets ran on different schedules in 2026:
- East Baton Rouge Parish: the Sheriff held its first tax lien auction online on July 8, 2026 (East Baton Rouge Parish Sheriff's Office, September 2026).
- Caddo Parish (Shreveport): the Sheriff conducted its tax lien auction online on June 30, 2026 (Caddo Parish Sheriff, September 2026).
- Orleans Parish (New Orleans): the Bureau of Treasury says its auction date "will be announced once it's scheduled" (City of New Orleans, page updated May 26, 2026). No 2026 date had been published as of September 23, 2026.
For a certificate from the June or July 2026 auctions, the earliest possible suit falls in the summer of 2029. That is a long runway to pay, refinance, or sell on your schedule.
Selling a Louisiana house with a tax lien
You can sell a Louisiana house with a tax lien certificate on it, because you still own the house and the lien is paid from the sale proceeds. The title search turns up the certificate, and a closing attorney or title company requests the termination price from the tax collector. It is paid at closing, the same way a mortgage balance is.
Weighing the numbers
The tax debt is often small next to the equity. Louisiana's typical house value was $217,039 in August 2026, up 2.1% from a year earlier (Zillow ZHVI, August 2026). Statewide MLS data put the August median sales price at $254,000, with houses taking a median of 69 days to sell (Louisiana REALTORS, August 2026).
Separately, 28.1% of Louisiana listings had a price drop in May 2026 (Redfin Data Center, May 2026). A listed sale can work when the house shows well and time allows, though a house that won't sell keeps adding interest and tax years.
Where a cash offer fits
Propcash is a direct cash homebuyer based in Nashville that buys houses as a principal. You can get a cash offer and see how we got to the number, with the tax lien 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. More statewide options are on the Louisiana cash offer page. If a mortgage payment is also behind, see how to stop foreclosure in Louisiana, and New Orleans owners can check the New Orleans housing market 2026 guide.
Why wait? Sell your house “as is” for cash today
Tell us about your house. We'll make you a cash offer based on local market data.
Let's chatFrequently Asked Questions
Can you lose your house at a Louisiana property tax lien auction?
Not at the auction itself. Since January 1, 2026, a Louisiana property tax lien auction sells a lien that secures your unpaid taxes, and you keep ownership and possession of the house. The certificate holder can ask a court to enforce the lien only after the later of three years from recording or six months after a pre-suit notice (La. R.S. 47:2266.1).
How much interest does a Louisiana tax lien certificate charge?
Unpaid Louisiana property taxes accrue 1% a month, noncompounding, from the day after they were due (La. R.S. 47:2127). At the auction, buyers can offer to accept a lower monthly rate, and the winning rate falls between 0.7% and 1% a month (La. R.S. 47:2154). A one-time 5% penalty on the taxes is also added when the lien is offered at auction.
How long do you have to pay off a tax lien in Louisiana?
You can pay the termination price to the tax collector until close of business on the 30th day after the last party is served with the certificate holder's lawsuit (La. R.S. 47:2266.1). That suit cannot be filed until at least three years after the certificate is recorded. After the 30-day window, ending the lien takes the holder's agreement or a court order.
What if you were behind on property taxes in Louisiana before 2026?
A tax sale held in 2025 or earlier is redeemed under the law in effect on December 31, 2025 (La. R.S. 47:2241.1). Under that law, the owner generally has three years from the recording of the tax sale to redeem by paying the price, costs, a 5% penalty, and 1% a month. Blighted property can have a shorter 18-month period, so confirm the exact deadline with the tax collector.
Can you sell a Louisiana house with a tax lien certificate on it?
Yes. You still own the house, so you can sell it, and the closing attorney or title company pays the termination price to the tax collector from your sale proceeds. The lien ranks ahead of other mortgages and liens (La. R.S. 47:2127), so the buyer's title company will expect it to be paid at closing.
Does the homestead exemption stop a Louisiana tax lien auction?
No. The homestead exemption lowers the bill by exempting the first $7,500 of assessed value, which is $75,000 of market value, from state, parish, and special taxes (La. Const. art. VII, sec. 20). Any tax still owed after the exemption can go to a lien auction if it stays unpaid. Outside Orleans Parish, the exemption also does not reach municipal taxes.
Sources: Louisiana Constitution article VII and Revised Statutes Title 47, read on legis.la.gov in September 2026, plus the parish tax collectors named above. Propcash is not a law firm. For a specific certificate or lawsuit, talk to a Louisiana attorney.