Key Takeaways
- The sale is of a lien, not the house: The buyer gets a certificate for the tax lien. You keep title and can redeem until a circuit court bars that right (Tax-Property §14-833(b)).
- Six months, or nine for a house you live in: That is the earliest a certificate holder can file to foreclose, and only after two certified notices (§14-833).
- New limits since January 1, 2026: Owner-occupied and heir-occupied houses owing under $1,000 are withheld, and owner-occupied interest is capped at 10% on new certificates (Chapter 231 of 2025).
- Costs rise in steps: No holder expenses in the first 7 months on an owner-occupied house; after a lawsuit, attorney's fees alone can reach $1,500 (§14-843).
- A sale before judgment keeps your equity: The certificate is paid from the proceeds at closing. After judgment, the holder takes title to the house (§14-844).
A Maryland tax sale does not sell your house. Each county, and Baltimore City, sells a certificate for the unpaid tax lien to a private buyer at its yearly sale (Md. Code, Tax-Property §14-808). You still own the house. You can pay off the certificate until a circuit court forecloses your right to redeem.
If you are behind on property taxes in Maryland, that redemption window is your clock, and it runs at least 6 months, or 9 for a house you live in. This guide covers who is protected in 2026, what redemption costs, and how a sale before judgment can keep your equity with you.
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Let's chatWhat does a Maryland tax sale actually sell?
A Maryland tax sale sells the local government's lien for unpaid taxes, not the house itself. Under §14-808, the collector must offer every account with taxes in arrears on the local schedule, unless §14-811 allows or requires it to be withheld. At the sale, "the lien for the taxes, interest, penalties, and expenses passes to the purchaser" (§14-817).
The buyer receives a certificate of sale. It states the redemption rate and when a foreclosure case may be filed (§14-820). The certificate is void unless the holder files that case within 2 years of its date (§14-833(c)).
What stays the same for you
You keep title, the right to live in the house, and the right to sell it. "The right to redeem shall continue until finally barred by decree of the circuit court" (§14-833(b)). Anyone with an interest in the house, including a mortgage lender, may redeem "at any time until the right of redemption has been finally foreclosed" (§14-827).
The notices you should receive
Before the sale, the collector mails a "Final Bill and Legal Notice" at least 30 days before advertising begins (§14-812). Newspaper notice then runs once a week for 4 weeks in most counties (§14-813).
Within 60 days after the sale, the collector must write to confirm the sale and your right to redeem (§14-817.1).
Which houses must be withheld from the tax sale in 2026?
Since January 1, 2026, the collector must withhold an owner-occupied house, or a house occupied by an heir of a deceased owner, when the total owed is under $1,000 (§14-811(b)(2)). That rule comes from HB 59, enacted as Chapter 231 of 2025. Before 2026, the required withholding applied only in Baltimore City.
Chapter 231 made other changes that matter to owners:
- A registry: Baltimore City and every county "shall establish a registry for interested parties or the Tax Sale Ombudsman to designate a property to be withheld from tax sale" (§14-811(j)).
- An interest cap: Owner-occupied redemption interest may not exceed 10% a year (§14-820(c)).
- No later taxes at redemption: For an owner-occupied house, taxes that come due after the sale cannot be added to the redemption payment (§14-828(a)(2)).
The act applies "only prospectively." It does not reach any certificate issued before January 1, 2026 (Chapter 231, Section 2). Longer redemption clocks and a statewide water-bill rule were struck from HB 59 before passage, so the 6- and 9-month clocks in §14-833 still apply. A separate 2025 bill, SB 724, did not pass.
October 1, 2026: medical hardship
Chapter 777 of 2026 takes effect October 1, 2026. It requires Baltimore City and each county to withhold the dwelling of a homeowner with a terminal illness or medical hardship. A licensed health care provider must document it. The act also raises the Homeowner Protection Program's assessed-value limit from $300,000 to $450,000.
Behind on property taxes in Maryland: the timeline, stage by stage
If you are behind on property taxes in Maryland, the path runs from a final bill to the yearly tax sale, two notices from the certificate holder, and a circuit court case. The table shows owner-occupied timing, with the non-owner-occupied figure in parentheses.
| When | What happens | What it costs | Who to call |
|---|---|---|---|
| At least 30 days before advertising | "Final Bill and Legal Notice" with a relief insert (§14-812). | Taxes, interest, and penalties | County or city collector; State Tax Sale Ombudsman |
| The weeks before the sale | Newspaper notice; Baltimore City also posts online (§14-813). | Sale expenses can join the lien (§14-817) | Collector |
| Sale day | A buyer gets the certificate; the lien passes to it (§14-817). | Redemption interest starts (§14-828(b)) | Collector |
| Within 60 days after the sale | Collector's letter confirming the sale and your right to redeem (§14-817.1). | Lien plus interest | Collector; State Tax Sale Ombudsman |
| First 7 months (4) | Holder can claim no expenses (§14-843(b)). | Lien, interest, and any taxes the holder paid | Collector; a title company or settlement attorney |
| After 7 months (4) | First certified notice from the holder; second at least 1 week later (§14-833(a-1)). | Plus recording, title search up to $250, mail, attorney up to $500 | The holder named on the notice, for a payoff |
| After 9 months (6), and 2 months after the first notice | Holder may file to foreclose the right of redemption (§14-833(a)). | Plus $1,300 or $1,500 in attorney's fees and court costs | A Maryland attorney; the Ombudsman |
| 2 years after the certificate | Certificate void if no case was filed (§14-833(c)). | The holder's payment is applied to your back taxes (§14-833(d)) | Collector |
| Judgment | Right to redeem ends; holder takes title (§14-844). Tenants get 30 days' notice (§14-836). | The house and its equity | A Maryland attorney |
Your county sets the sale date. Baltimore City held its 2026 sale on May 18, 2026, and Montgomery County on June 8, 2026 (Montgomery County Department of Finance, 2026). Howard County held its sale on June 10, 2026 (Howard County Finance, September 2026).
The certificate and the redemption interest rate
The default redemption rate in Maryland is 6% a year, but the counties named in §14-820(b) may set their own. On a certificate issued from January 1, 2026, the owner-occupied rate cannot exceed 10%. Interest runs "from the date of the tax sale to the date of the redemption payment" (§14-828(b)).
| Jurisdiction | Local rate as published | Owner-occupied, 2026 certificate |
|---|---|---|
| Baltimore City | City Code Art. 28 §8-1: 12% a year for an owner-occupied principal residence, 18% for all others | No more than 10% under §14-820(c) |
| Baltimore County | Set by county law (§14-820(b)(4)); the county's terms page could not be read for this guide | No more than 10%; confirm with the county |
| Montgomery County | 6% owner-occupied, 20% non-owner-occupied, from June 8, 2026 (county Tax Sale Notice) | 6% |
| Howard County | 6% owner-occupied, 18% non-owner-occupied, as designated by SDAT (county tax sale FAQ) | 6% |
| Other counties | 6% in most; 10% or 14% in five counties; each "or as fixed" locally (§14-820(b)) | No more than 10% |
Baltimore City's code has not caught up. Article 28 §8-1 still reads 12% for an owner-occupied house, but state law controls: "For owner-occupied residential property, the rate of redemption may not exceed 10% a year" (§14-820(c)). Chapter 231 applies that cap to certificates issued on or after January 1, 2026. A certificate from a 2025 or earlier sale keeps its original rate.
Owner-occupied status is what SDAT shows at the time of the sale, and both the rate and your clock turn on it.
How much does it cost to redeem after a Maryland tax sale?
To redeem after a Maryland tax sale, you pay the collector the lien amount paid at the sale with interest, any taxes the holder paid, and the holder's allowed expenses (§14-828). For a house that is not owner-occupied, taxes that came due after the sale are added too. You pay the county or city collector, and the collector pays the holder.
The recorded certificate of redemption has "the same effect as a release of a mortgage" (§14-828(c)).
Expenses the holder can add
The expense rules in §14-843 set hard limits by stage:
- Early redemption: Nothing for expenses within 4 months after the sale, or 7 months for an owner-occupied house (§14-843(b)).
- After that, before a lawsuit: Recording costs, "a title search fee, not to exceed $250," certified mail for the notices, and "reasonable attorney's fees, not to exceed $500."
- After a lawsuit is filed: Attorney's fees of $1,300, or $1,500 once an affidavit of compliance is filed. Documented filing, service, title, publication, and posting costs are added.
The holder "is not entitled to be reimbursed for any other expenses or attorney's fees" beyond that list (§14-843(a)(2)).
Before a lawsuit, the owner of an owner-occupied house may ask the holder for a payoff, and the figure stays valid for 30 days (§14-833(a-1)(5)). In Baltimore City, send that request by certified mail.
When can a certificate holder file to foreclose?
A certificate holder can file to foreclose your right of redemption 6 months after the sale, or 9 months after it for an owner-occupied house, and only after sending two notices. The text of §14-833 reads:
"(a)(1) ... at any time after 6 months from the date of sale a holder of any certificate of sale may file a complaint to foreclose all rights of redemption of the property to which the certificate relates. (2) ... at any time after 9 months from the date of sale of owner-occupied residential property, a holder of any certificate of sale may file a complaint to foreclose all rights of redemption of the property to which the certificate relates."
The holder must also wait 2 months after the first notice and 30 days after the second (§14-833(a-1)). The first notice cannot go out until 4 months after the sale, or 7 months for an owner-occupied house. Both arrive by certified mail in an envelope marked "Notice of Delinquent Property Tax" (§14-833(a-1)(6)).
Exceptions that shorten the clock
A holder may file after 60 days if a government agency certifies that the building needs substantial repairs to meet code (§14-833(e)). Some abandoned vacant lots and buildings cited as vacant and unfit can be foreclosed any time after the sale (§14-833(f) and (g)). Owners of empty houses in the city can read our guide to selling a vacant Baltimore rowhouse.
What a judgment does
Once the court enters judgment, your right to redeem ends. The judgment "vests in the plaintiff an absolute and indefeasible title in fee simple" (§14-844(b)).
Tenants get written notice at least 30 days before the holder takes possession (§14-836(b)(7)). Later, the collector must tell you about any balance from the sale price above the taxes, interest, penalties, and costs (§14-818(a)(6)). That balance depends on what the certificate buyer paid, not on what the house could sell for.
Relief programs and the other 2026 laws
Maryland's main relief tools are the Homeowner Protection Program and the Homeowners' Property Tax Credit.
The Homeowner Protection Program
SDAT's State Tax Sale Ombudsman runs this program "to divert vulnerable homeowners from the private tax lien sale process" (§14-884). To qualify, you must live in a dwelling assessed at $300,000 or less, with combined income of $60,000 or less (§14-885). The value limit rises to $450,000 on October 1, 2026 (Chapter 777). The estate, personal representative, or heir of a deceased owner can also qualify (§14-883(d)).
If you enroll before the sale, SDAT pays the county and the house is withheld. If you enroll after the sale, SDAT pays the holder the full redemption amount, including interest and expenses (§14-887). You then owe the debt to the state, for up to 3 years of enrollment. The Ombudsman's helpline is (410) 767-4994, or (833) 732-8411 toll free (SDAT, September 2026).
The Homeowners' Property Tax Credit
This credit ties the tax on the first $300,000 of your dwelling's assessed value to your income (Tax-Property §9-104). It is not available if combined net worth exceeds $200,000 or combined gross income exceeds $60,000. The application is due on or before October 1.
Heirs and vacant houses: Chapters 718 and 740
Chapter 718 (HB 1148) helps heirs living in a house still titled to a deceased owner. Since June 1, 2026, a qualifying heir not yet on title may receive the homeowners' and homestead credits for up to three taxable years (Department of Legislative Services, 2026 session).
Its Legacy Protection Program, which helps heirs become record owners, starts July 1, 2027. Families working with a personal representative (Maryland's term for an executor) can see our guide to selling an inherited house in Maryland.
For vacant buildings, Chapter 740 of 2026, effective June 1, 2026, amended the county in rem foreclosure process in §14-875.
Baltimore City: the May tax sale and its own rules
Baltimore City runs its own tax sale each May, with extra local protections on top of the state rules. It is independent of Baltimore County.
Owner-occupied removals
The city removed owner-occupied houses assessed under $250,000 from its May 19, 2025 sale, "like 2024" (Office of the Mayor, May 8, 2025). A 2026 removal was reported, but no city release confirming it was available for this guide.
The Maryland Legal Aid agreement
In February 2026, the city agreed with Maryland Legal Aid to stay that group's lawsuit. The city said it would raise the minimum price for a certificate to the assessed value and create payment plans (Office of the Mayor, February 9, 2026). The release said the price change will help "ensure homeowners are not deprived of equity." It does not mention the $250,000 removal.
The Tax Sale Deferral Program
This city program removes a house from one year's sale, but it "does not forgive unpaid bills." The city sets aside $2 million a year (Baltimore City DHCD, September 2026). Applications run February 15 to April 15, every year.
Water bills
Unpaid water bills have not counted toward the $1,000 owner-occupied threshold since 2020 (Baltimore City DHCD, September 2026). Since January 1, 2026, state law withholds any residential account whose only lien is water and sewer charges (§14-811(b)(3)).
Selling a Maryland house before the judgment
You can sell a Maryland house after a tax sale at any point before the court's judgment, because you still hold title. A title company or settlement attorney pays the redemption from the sale proceeds. What remains after the mortgage, the redemption, and closing costs goes to you.
Illustrative only: say a house could sell for $300,000, the mortgage balance is $150,000, and the redemption payoff is $6,000. A sale before judgment pays both, and the rest after closing costs is yours. After judgment, you get only any balance the collector reports.
The statewide median sale price was $445,000 in August 2026, up 2.3% from a year earlier, with a median of 17 days on market (Maryland REALTORS, August 2026). Zillow put the typical Maryland house value at $428,308 in August 2026, flat from a year earlier (Zillow ZHVI, August 2026).
Baltimore City is slower. Its median sale price was $225,000 in August 2026, down 8.2%, with 4.7 months of inventory (Maryland REALTORS, August 2026). A house that won't sell keeps adding interest while the redemption clock runs.
If a mortgage payment is also behind
Maryland's Protection of Homeowners in Foreclosure Act adds a safeguard if you live in the house and the mortgage is at least 60 days in default. You may rescind a contract to sell the house within 5 days after signing it (Real Property §7-310). For the mortgage side, see how foreclosure works in Maryland.
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 certificate payoff shown. Propcash is free for sellers, you can sell 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 and you have time, we will tell you and point you to a local agent. We may receive compensation from agents we refer. More statewide options are on our sell my house fast in Maryland page.
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Let's chatFrequently Asked Questions
Does a Maryland tax sale mean I lose my house?
Not at the sale itself. The sale transfers the tax lien to a certificate buyer, and you keep title and possession. You can redeem, or sell and pay the certificate from the proceeds, until a circuit court enters judgment foreclosing the right of redemption (Tax-Property §14-833(b)).
How long do I have to redeem after a Maryland tax sale?
Your right to redeem lasts until a circuit court bars it. The holder cannot file that case until 6 months after the sale, or 9 months for an owner-occupied house. It must also wait 2 months after the first notice and 30 days after the second (§14-833).
What interest rate applies when I redeem a Maryland tax sale certificate?
The statewide default is 6% a year, but many counties set their own rate under §14-820(b). For an owner-occupied house on a certificate issued on or after January 1, 2026, the rate may not exceed 10% a year (§14-820(c)). Baltimore City's 12% owner-occupied rate is capped at 10% for these certificates.
Can I sell my house if I am behind on property taxes in Maryland?
Yes. You own the house until a court forecloses the right of redemption, so you can sell before or after the tax sale. At closing, a title company or settlement attorney pays the taxes or the redemption amount from your proceeds.
Which houses are withheld from the Maryland tax sale in 2026?
Since January 1, 2026, the collector must withhold an owner-occupied house, or one occupied by an heir of a deceased owner, when the total owed is under $1,000 (§14-811(b)(2)). Houses in the Homeowner Protection Program are also withheld. From October 1, 2026, houses of owners with a documented terminal illness or medical hardship are added (Chapter 777 of 2026).
What happens after a court forecloses the right of redemption in Maryland?
The judgment gives the certificate holder "an absolute and indefeasible title in fee simple" to the house (§14-844(b)), and your right to redeem ends. The collector must tell the prior owner about any balance left from the sale price after taxes and costs, and how to claim it (§14-818).
Statutes and chapters were read on mgaleg.maryland.gov in September 2026. Propcash is not a law firm. For a specific certificate, talk to a Maryland attorney or the State Tax Sale Ombudsman.