Key Takeaways
- Two bills inside city limits: The City Treasurer bills city taxes plus a $183.54 stormwater fee. The Hamilton County Trustee bills county taxes. Both are payable October 1 through the last day of February.
- County interest starts March 1: Unpaid county taxes add 1.5% of the tax each month. An illustrative $2,500 bill unpaid from March 1, 2027 reaches $2,950 by February 1, 2028, before court costs.
- The court step comes next: Old tax debts go to Hamilton County Chancery Court. The Clerk and Master holds one tax sale a year, in June, at the courthouse.
- Redemption changed on July 1, 2026: For newer orders, the window is one year if taxes were three years delinquent or less, and 90 days if more (Public Chapter 971 of 2026).
- The clock starts at the order: Redemption runs from the date the Order Confirming Sale is entered, not the sale date. It costs 12% a year on the purchase price.
- A sale before the tax sale pays both bills at closing: The title company or closing attorney pays the Treasurer, the Trustee, or the court from the proceeds.
If you are behind on property taxes in Chattanooga, Tennessee, you are dealing with two separate tax collectors. Inside city limits, the City Treasurer bills city taxes and the stormwater fee, and the Hamilton County Trustee bills county taxes. Each bill runs on its own clock. Both can end in a Hamilton County Chancery Court tax sale.
This guide covers both bills, the interest, the yearly courthouse sale, and redemption, including a 2026 change in Tennessee law. Propcash is a direct cash homebuyer, not a law firm, so confirm your dates with the offices named here.
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Let's chatWhat happens when you fall behind on property taxes in Chattanooga?
When you fall behind on property taxes in Chattanooga, interest starts on each unpaid bill, and old debts go to Hamilton County Chancery Court for collection. That court case can end in a tax sale of the house. Each of the two offices keeps its own payoff figures.
The city bill and the stormwater fee
The City Treasurer bills city property taxes. The same bill carries the stormwater “water quality fee” as a separate item, due October 1 (Chattanooga City Code § 31-353). Every residential parcel counts as one equivalent residential unit at a flat rate (City Code § 31-352). The current fee is $183.54 per unit (City Code § 31-354, as amended June 10, 2025).
The city takes full payment from October 1 through the last day of February. City Hall, at 101 E. 11th Street, accepts partial payments year-round (City of Chattanooga, Property Tax page). A partial payment goes first to stormwater fee interest, then the fee, then tax interest and penalty, and last to the tax. The stormwater fee turns delinquent on February 1 and bears interest at the legal rate after March 1 (City Code § 31-353).
The county bill from the Trustee
The Hamilton County Trustee bills county taxes. Its payment period “begins on October 1st and continues through the last day of February.” On March 1, county taxes “become delinquent and begin to accrue 1 ½ % per month interest” (Hamilton County Trustee). The Trustee also collects city taxes for several smaller towns in the county, but not for Chattanooga.
Tennessee law does not require a tax bill to be mailed, so a lost bill does not stop the interest. The Trustee's phone is (423) 209-7270.
What the two rates look like
Tennessee assesses a house at 25% of its appraised value. Each government then applies its rate per $100 of that assessed value (Tenn. Code Ann. § 67-5-801; Tennessee Comptroller).
- County: Hamilton County's certified rate for 2025 is $1.51, down from $2.23 after the four-year countywide reappraisal (Hamilton County Mayor's Office, June 2025).
- City: Chattanooga set $1.93 for 2025, above its certified rate of $1.55 (City Ordinance 14271). The council passed it 5-3 (Local 3 News, September 2025).
- This year: The city budget approved June 23, 2026 kept the $1.93 rate (City of Chattanooga, June 2026).
The Assessor reappraises every four years (Local 3 News, April 2025). As an illustration only, a house appraised at $300,000 is assessed at $75,000. At the 2025 rates, that comes to about $1,133 in county tax and $1,448 in city tax. The city bill also carries the $183.54 stormwater fee.
How fast does an unpaid Hamilton County tax bill grow?
An unpaid Hamilton County tax bill grows by 1.5% of the tax every month starting March 1, so a full year adds 18%. State law adds the 1.5% on March 1 after the due date and again on the first day of each month after that (Tenn. Code Ann. § 67-5-2010; UT County Technical Assistance Service). The table follows an illustrative $2,500 county bill for 2026 that is still unpaid on March 1, 2027.
| Date interest is added | Interest that month | Total interest | Total owed (illustrative) |
|---|---|---|---|
| March 1, 2027 | $37.50 | $37.50 | $2,537.50 |
| April 1, 2027 | $37.50 | $75.00 | $2,575.00 |
| May 1, 2027 | $37.50 | $112.50 | $2,612.50 |
| June 1, 2027 | $37.50 | $150.00 | $2,650.00 |
| July 1, 2027 | $37.50 | $187.50 | $2,687.50 |
| August 1, 2027 | $37.50 | $225.00 | $2,725.00 |
| September 1, 2027 | $37.50 | $262.50 | $2,762.50 |
| October 1, 2027 | $37.50 | $300.00 | $2,800.00 |
| November 1, 2027 | $37.50 | $337.50 | $2,837.50 |
| December 1, 2027 | $37.50 | $375.00 | $2,875.00 |
| January 1, 2028 | $37.50 | $412.50 | $2,912.50 |
| February 1, 2028 | $37.50 | $450.00 | $2,950.00 |
These figures are simple interest on the tax alone. They leave out court costs, attorney fees, and the 2027 bill, which starts its own clock. Your Trustee payoff is the number that counts.
Tennessee officials have no authority to waive accrued interest. A court can grant equitable relief in narrow cases, but financial hardship alone does not excuse it (UT County Technical Assistance Service).
City taxes run on a similar clock
State law applies the same 1.5% monthly interest to city taxes left unpaid past the city's delinquency date (Tenn. Code Ann. § 67-5-2010(b)). The city's tax page prints no rate, so ask the Treasurer at (423) 643-7262 for a payoff.
When does the debt go to Chancery Court?
Chattanooga city taxes go to Hamilton County Chancery Court when still unpaid a year after their due date, and county taxes reach the same court under state law. The city's tax page says unpaid taxes “will be filed in Hamilton County Chancery Court” a year after they are due (City of Chattanooga). For county taxes, the Trustee hands the unpaid list to the delinquent tax attorney, who files suit between February 1 and April 1 (Tenn. Code Ann. §§ 67-5-2404, 67-5-2405).
The Chancery Court's caseload includes the “collection of delinquent taxes” (Hamilton County Courts). Once a city tax is filed there, it must be paid to the Chancery Court, not the Treasurer. At the same time, past-due stormwater fees go to a collection agency and are paid separately.
The judgment covers the taxes, interest, and penalties, plus attorney fees and court costs. For a payoff on a parcel already in suit, call the Clerk and Master at (423) 209-6606.
If your mortgage has an escrow account and the taxes still went unpaid, call your loan servicer. Unpaid taxes can become a mortgage problem too. Our guide to foreclosure notices and the courthouse sale in Chattanooga covers that side.
How the June tax sale at the courthouse works
The Hamilton County Clerk and Master holds the delinquent tax sale once a year in June, on the 4th floor of the courthouse at 625 Georgia Avenue. The court orders the sale for cash, subject to the owner's right of redemption (Tenn. Code Ann. § 67-5-2501; CTAS).
The office's Notice of Sale (Form 123T, revised May 7, 2025) sets out the routine. The copy posted in the county's 2026 tax sale folder, read October 7, 2026, still names the June 5, 2025 sale. Its steps:
- Registration opens at 9 a.m., and the sale starts at 10 a.m.
- Parcels are published on one Friday in May in the Hamilton County Herald and on the county website.
- The opening amount for each parcel is what is owed: taxes, interest, penalties, attorney fees, and court costs.
- The purchaser pays right after the sale by cash, cashier's check, or money order.
- Orders Confirming the Sale are prepared within two to three weeks of the sale date.
The sale proceeds first pay the delinquent tax attorney's compensation and the court costs. The rest goes to the state, then the county, then the city (CTAS).
What the purchaser must do during redemption
Inside Chattanooga, the purchaser must keep the house up to the city's property maintenance code during the redemption year (City Code § 21-1 et seq., per the notice). Improvements should generally wait until the period ends. If you already hold a code notice, our guide to selling a Chattanooga house with an open code violation notice explains how those notices travel with a house.
If the owner redeems, a purchaser who spent money to preserve the house must file a motion to recover it. The Chancellor decides at a hearing whether to award any of it.
If no one buys the parcel
When no outside purchaser pays the amount owed, the county and city take the parcel. After the one-year redemption period, the county's Real Property Manager resells them through a sealed-offer process.
How long do you have to redeem a house after a Hamilton County tax sale?
You generally have one year from the entry of the Order Confirming Sale to redeem, or 90 days if the taxes were more than three years delinquent. Those periods apply to orders entered on or after July 1, 2026, under Public Chapter 971 of 2026. It rewrote the scale in Tenn. Code Ann. § 67-5-2701(a)(1)(C). Orders entered before that date keep the older scale.
| Situation | Redemption period | Source |
|---|---|---|
| Order entered on or after July 1, 2026; taxes delinquent 3 years or less | 1 year from entry of the order | § 67-5-2701(a)(1)(C)(i) (Pub. Ch. 971) |
| Order entered on or after July 1, 2026; taxes delinquent more than 3 years | 90 days from entry of the order | § 67-5-2701(a)(1)(C)(ii) (Pub. Ch. 971) |
| Order entered before July 1, 2026; taxes delinquent 5 years or less | 1 year from entry of the order | Prior § 67-5-2701(a)(1)(C) |
| Order entered before July 1, 2026; more than 5 but less than 8 years | 180 days from entry of the order | Prior § 67-5-2701(a)(1)(C) |
| Order entered before July 1, 2026; 8 years or more | 90 days from entry of the order | Prior § 67-5-2701(a)(1)(C) |
| Court finds a reasonable basis to believe the house is vacant (or vacant land is abandoned) | 30 days from entry of the order | § 67-5-2701(a)(1)(D) and (a)(2) |
| Hamilton County notice (Form 123T, rev. May 7, 2025) | One year unless the Order Confirming Sale states otherwise; runs from entry of the order, not the sale date | Notice of Sale, paragraph 10 |
No redemption right runs longer than one year from the order (CTAS). The court sets each parcel's period before the sale, and the order may state it. Hamilton County's notice predates Public Chapter 971, so read your own Order Confirming Sale for the date and period that control.
What redemption costs
To redeem, you file a motion in the tax case. Before filing, you pay the clerk these amounts (Tenn. Code Ann. § 67-5-2701(b)(1)):
- The delinquent taxes, penalty, and interest
- The court costs
- Interest on the entire purchase price the purchaser paid
Hamilton County's notice figures that interest at 12% a year, simple, from the sale date to the redemption date. You also repay any taxes the purchaser paid during the redemption year. As an illustration, if a purchaser paid $6,000 and you redeem six months later, the interest on the purchase price is about $360.
The purchaser can ask the court for certain other costs. If you pay after the sale but before the order is entered, you still owe interest on the purchase price (§ 67-5-2701(i)).
Who can redeem
The notice limits redemption to four groups:
- Owners, or agents acting for owners
- People who own a legal interest in the house
- People who own an equitable interest in the house
- Lienholders who are creditors of the taxpayer
The court can deny a redemption by someone who bought the right to redeem for speculation (§ 67-5-2701(b)(2)), so talk to a Tennessee attorney before signing over any interest.
Money left over after the sale
During the redemption year, the Clerk and Master holds any amount paid above what was owed, to refund the purchaser if you redeem. If the house is not redeemed, the owner at the time of the sale can ask for that excess. The request is a Motion to Claim Excess Sale Proceeds filed in Chancery Court (Tenn. Code Ann. § 67-5-2702; Clerk and Master Form 285T). The movant mails a copy to the parties in the tax case.
Tax relief, the tax freeze, and ways to catch up
Elderly, disabled, and disabled-veteran owners may qualify for state tax relief, and the city offers a tax freeze to owners who meet age and income limits. Neither cancels taxes you already owe, but both can lower the bills still to come.
- State tax relief: The state reimburses part of city and county taxes for qualified applicants (Tenn. Code Ann. § 67-5-701 et seq.; City of Chattanooga). Apply with the Trustee for the county bill and the Treasurer for the city bill.
- City tax freeze: Chattanooga adopted the local-option freeze in 2017, and its 2026 income limit is $63,470 (Tennessee Comptroller, March 2026; Tenn. Code Ann. § 67-5-705). Hamilton County is not on that list, so the freeze covers the city bill only.
- Stormwater fee help: Anyone approved for tax relief or the tax freeze can have the current stormwater fee paid by United Way, per the city's tax page.
- Partial payments: City Hall takes them year-round, and the Trustee's site posts a partial pay form. Interest runs on whatever is unpaid.
Can you sell a Chattanooga house with delinquent property taxes?
Yes, you can sell a Chattanooga house with delinquent property taxes, and both bills are typically paid from the sale proceeds at closing. Unpaid taxes are a first lien on the house (CTAS). The buyer's title company or closing attorney orders a payoff from each office before closing. What changes over time is who holds the payoff:
- Before the suit: payoffs come from the City Treasurer and the Hamilton County Trustee, the simplest stage for a sale.
- After the suit is filed: the taxes are paid to Chancery Court, and the payoff includes attorney fees and court costs. Past-due stormwater fees are paid to the collection agency.
- After the tax sale: the remaining path is redemption within the period, so talk to a Tennessee attorney first.
Where Propcash fits
Propcash is a direct cash homebuyer. We buy Chattanooga houses as-is, sign the purchase contract as the buyer, and make one written cash offer with the reasoning shown. Sellers pay no commissions or fees to Propcash.
The back taxes are typically paid from the proceeds, and the closing follows the title work and the payoff letters. Propcash does not deal with the Treasurer, the Trustee, or the court for you. Only payment ends a tax case, and a closing can be where that payment comes from. Our page on selling a Chattanooga house for cash walks through the steps.
A cash sale is not always the right move. Paying the bills costs less than any sale. If the house shows well and time allows, listing with an agent may net you more, and we will say so. If a sale fits, you can get a cash offer and take your time, because our offers stand.
Heirs with a tax notice in an estate's mail can see our guide to selling an inherited house in Chattanooga.
What the market says about timing
Chattanooga's median sale price was $364K over the three months ending August 2026, up 1.0% from a year earlier (Redfin, August 2026). The median house sold after 41 days on the market, compared with 58 days a year before. Zillow's Home Value Index, a separate measure, was $319,185 for August 2026, down 1.2% (Zillow ZHVI, August 2026).
On a delinquent county bill, each month on the market adds another 1.5% of the tax. Our Tennessee page covers other cities.
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
What happens if you are behind on property taxes in Chattanooga?
Unpaid Hamilton County taxes become delinquent on March 1 and add 1.5% of the tax each month, and city taxes run on a similar clock. City taxes unpaid a year after their due date are filed in Hamilton County Chancery Court, and county taxes go to the same court through the delinquent tax attorney. If the judgment stays unpaid, the Clerk and Master can sell the house at the annual June tax sale.
How long do you have to redeem a house after a Hamilton County tax sale?
Under Public Chapter 971 of 2026, an Order Confirming Sale entered on or after July 1, 2026 starts a one-year period if the taxes were three years delinquent or less. If they were more, the period is 90 days. A court can set 30 days for a house shown to be vacant. The period runs from the date the order is entered, not the sale date, and redeeming costs 12% a year on the purchase price on top of the amounts owed.
When is the Hamilton County tax sale held?
The Clerk and Master holds one delinquent tax sale a year, in June, in the County Commission Room on the 4th floor of the courthouse at 625 Georgia Avenue. Registration opens at 9 a.m. and the sale starts at 10 a.m. The parcel list runs on one Friday in May in the Hamilton County Herald and on the county website.
Why do Chattanooga homeowners get two property tax bills?
The City Treasurer bills city taxes and the stormwater water quality fee, while the Hamilton County Trustee bills county taxes. The Trustee collects city taxes for several smaller towns in the county but not for Chattanooga. Both bills are payable from October 1 through the last day of February, and each one is paid to its own office.
Can you sell a Chattanooga house if you owe back property taxes?
Yes, you can sell with back taxes owed. The title company or closing attorney orders payoffs from the City Treasurer and the Hamilton County Trustee, or from Chancery Court if the taxes are in suit. Those amounts are paid from the sale proceeds at closing. After a tax sale, the remaining path is redemption within the period, so talk to a Tennessee attorney before you sign anything.
Does Chattanooga have a property tax freeze for seniors?
Yes, Chattanooga has a tax freeze for qualifying seniors. The City of Chattanooga adopted the state's local-option tax freeze in 2017, and the Comptroller lists a 2026 income limit of $63,470 for city applicants. Hamilton County is not on the Comptroller's list of counties with a freeze, so the freeze covers the city bill only. Separately, state tax relief can reimburse part of both bills for qualifying elderly, disabled, and disabled-veteran owners.
This guide is general information, not legal advice. Confirm payoffs and dates with the City Treasurer, the Hamilton County Trustee, or the Clerk and Master, and talk to a Tennessee attorney about redemption.