Behind on Real Estate Taxes in Richmond? The 10% Penalty, the November 2026 Tax Sale Relaunch, and the Two-Year Clock

If you have delinquent real estate taxes in Richmond, Virginia, the next year looks different from the last few. The city paused its tax sale program in January 2023. It plans to relaunch the program in November 2026, with the first sale expected in 2027.

The clock is still measured in years, not weeks. This guide covers what a late half costs, how the relaunch works, and the options open at each step.

How long can real estate taxes stay delinquent in Richmond, VA?

By the city's own count, Richmond real estate taxes must stay unpaid for two full calendar years before a house becomes eligible for tax sale. Eligibility also requires repeated notices and outreach, plus the legal requirements of Virginia law (City of Richmond Real Estate Tax Sale Program, October 2026).

The city's FAQ gives an example. A bill due in January 2027 that goes unpaid stays delinquent through 2028. Once December 31, 2028 passes, the house "becomes eligible for sale anytime in 2029."

State law sets the outer frame. A locality may sell real estate once taxes are "delinquent on December 31 following the second anniversary of the date on which such taxes have become due" (Va. Code § 58.1-3965). Read literally, that wording can land a year later than the city's example. Ask the city through 311 for the date that applies to your account.

Shorter clocks for some parcels

The same statute shortens the wait in a few cases. A parcel with a condemned structure, a nuisance, a derelict building, or a blight declaration can qualify after about one year. On a court finding, a parcel assessed at $100,000 or less can qualify once taxes are unpaid on December 31 after the first anniversary. If any of these labels applies to your house, ask which clock the city is using.

The Richmond tax calendar and what a late half costs

Richmond bills real estate tax at $1.20 per $100 of assessed value, in two halves due January 14 and June 14 (City of Richmond Department of Finance, October 2026). A half not paid "on or before the due date" draws a 10% penalty and interest of 10% a year.

The value comes from the City Assessor, not a Commissioner of the Revenue. Finance's page says "The City Assessor determines the FMV" of every parcel, and January 1 is the date the value is set. Bills go out at least 14 days before the due date, but a missing bill does not excuse the tax.

The reassessment pause and the next notice

Richmond announced a one-year pause in reassessment after its September 2025 notices, to line up its budget calendar. The Richmonder reported that the next change "won't happen until May of 2027" and would reflect two years of value change (The Richmonder, May 2025). The Assessor's Forms page, read in October 2026, already lists appeals for a 2027 assessment, with Board of Equalization applications through November 30, 2026 (City of Richmond Assessor). Check your most recent notice, because a higher 2027 value could mean a larger bill on top of the arrears.

The penalty math on an illustrative bill

Illustration only: a house assessed at $400,000 owes $4,800 a year at $1.20 per $100. The table follows its two 2027 halves, with simple interest on the unpaid tax, rounded. The city's payoff figure is the real number.

Unpaid 2028 bills would add another $4,800 plus penalties. The City Code also adds administrative fees of $30 once 30 or more days pass after a delinquency notice, or $35 after a judgment. Attorney or collection agency fees can reach 20% of the amount collected (City Code Sec. 26-332).

Help on the bill itself

Finance runs a voluntary Real Estate Tax Escrow program for paying ahead in smaller amounts, and it posts a Penalty and Interest Waiver application. Older owners can read our guide to Richmond senior tax relief and what happens to it when you sell.

Richmond tax sale 2026: what the November relaunch means

The November 2026 relaunch restarts the city's process for taking long-delinquent accounts to court, but no sale is scheduled yet. The city says its Real Estate Tax Sale Program "will relaunch in November 2026" after a pause that began in January 2023 (City of Richmond, October 2026).

The city's FAQ says the first sale is "anticipated in the second half of 2027." A September 28, 2026 memo from the Chief Administrative Officer to City Council says "by June 2027." Either way, it is a 2027 event.

Who the mayor says comes first

Mayor Danny Avula described the order in an August 2026 interview. "We're really going to go after out of town owners or non-occupant owners initially," he said (NBC12, August 2026). NBC12 also reported that the city offers repayment plans and that owners only need to reach out.

If you inherited a Richmond house and live somewhere else, or you own a rental here, that statement describes you.

The numbers behind the relaunch

The memo puts figures on the backlog (City of Richmond CAO memo, September 2026):

• About $24.2 million in delinquent real estate taxes across 16,677 accounts, as of August 31, 2026.
• 7,626 accounts, about $5.4 million, already past the two-year threshold and eligible for tax sale.
• Fiscal year 2025 accounts ($5.7 million) become eligible December 31, 2026, and fiscal year 2026 accounts ($13.1 million) on December 31, 2027.
• About 60% of the properties identified as eligible were "passed down within a family without a formal transfer of legal title."

The memo states that "displacement of residents is not the goal of the program." The city's Office of Neighborhood Engagement plans to contact affected households directly. Staff also met with LISC Virginia on September 25 about legal help for families holding heirs' property.

If the house came to you from a parent or grandparent and the deed never changed, our guide to selling an inherited house in Richmond covers probate at the Circuit Court Clerk's office.

The Notice of Intent and the payment plan that pauses it

A payment plan set up after a Notice of Intent stops further tax sale action while the plan stays in good standing. After Finance and the City Attorney's Office choose accounts for the program, the City Attorney's Office "mails a Notice of Intent to owners and occupants" and publishes a list of those parcels.

After that notice, and before the city mails its notice of the sale itself, an owner "may contact Finance to request a payment plan." Once the plan is set, "the City Attorney's Office stops further tax sale action while the plan remains in good standing."

What a Richmond payment arrangement looks like

Arrangements through the Delinquent Collections Unit have these features (City of Richmond Delinquent Collections, October 2026):

• No required down payment for real estate taxes.
• A maximum length of 12 months.
• One missed payment allowed without default.
• Current bills must stay paid, and only one tax type can be in a plan at a time.
• No new arrangement for 12 months after the last one started, with exceptions for owners who qualify for the Elderly and Disabled Real Estate Tax Relief Program.

Virginia law also lets the treasurer or other collecting officer agree to installments of up to 72 months. The notice mailed at least 30 days before any lawsuit must tell you that you may ask (Va. Code § 58.1-3965). A default lets the officer void that kind of agreement on 15 days' written notice.

To start, call RVA311 at 311 or (804) 646-7000, or submit a request online. The city lists no separate tax sale hotline.

Other collection tools the city can use

After a collections notice, Finance can also file tax liens, use a collection attorney or agency, sue, or seize property. Its Debt Set-Off program can take a state tax refund or lottery winnings, and DMV can block vehicle registration.

How a Virginia judicial tax sale works, and when you can still redeem

A Virginia tax sale is a lawsuit in circuit court, not a lien certificate sale. It is filed "in the circuit court of the county or city in which such real estate is located" (Va. Code § 58.1-3967). For a city house, that is the Richmond Circuit Court, whose clerk is at the John Marshall Courts Building, 400 North 9th Street.

The city "files a lawsuit in the local Circuit Court and publishes notices." If the debt stays unpaid, a Special Commissioner is appointed to sell the house. Everyone with an interest, including a mortgage lender, is named.

The city excludes "unbuildable" parcels and houses whose owners file for bankruptcy, though a dismissed bankruptcy lets the city proceed.

Redemption runs to the sale date

Owners and heirs can end the case by paying in full before the sale date. Virginia gives them the right to redeem:

"prior to the date set for a judicial sale thereof by paying into court all taxes, penalties, and interest due with respect to such real estate ... together with all costs including costs of publication and a reasonable attorney fee set by the court." (Va. Code § 58.1-3974)

Partial payment does not redeem the house or pause the case (Va. Code § 58.1-3965). The court also cannot confirm a sale sooner than 90 days after the required notice to the parties.

The 2026 land-bank change (HB 474)

Since July 1, 2026, a court can let a special commissioner deed a qualifying parcel assessed at $125,000 or less to the city, its land bank, or a designated nonprofit. That conveyance replaces a public sale. HB 474, 2026 Acts chapter 151, raised the ceiling from $75,000 (Va. Code § 58.1-3970.1).

The parcel must carry delinquent taxes or certain city liens and pass one of three tests:

• "such taxes and liens, together, including penalty and accumulated interest, exceed 50 percent of the assessed value of the parcel"
• "such taxes alone exceed 25 percent of the assessed value of the parcel"
• with a derelict building, taxes and liens together exceed 25 percent of the assessed value

At Richmond's rate, a year of tax is 1.2% of assessed value. These tests usually fit parcels unpaid for many years or carrying large city liens. If the city or land bank later sells, surplus goes to lienholders and the former owner or heirs, and "No deficiency shall be charged against the owner."

What a court-ordered tax sale does to your equity

A court-ordered tax sale pays the city first and leaves the owner only the surplus that remains after taxes, fees, costs, and liens. The buyer at the judicial sale takes title free of the claims of every party named in the case, including a mortgage lender (Va. Code § 58.1-3967).

The former owner or heirs are entitled to the surplus "in excess of the taxes, penalties, interest, reasonable attorney fees, costs, and any liens." The person claiming it carries the burden of proof. Surplus unclaimed two years after the court confirms the sale goes to the city.

A court sale also takes the timing and the price out of your hands. The price is whatever the public sale brings that day.

Utility charges can attach to the house too

Unpaid city gas, water, wastewater, and stormwater charges can become a lien on the real estate served (City Code Sec. 28-111). For a residential house, the lien attaches only if the user is the owner or the owner signed for the service. The city can certify the charges to the Circuit Court Clerk once an account is at least 90 days past due.

Can you sell a house behind on property taxes in Richmond?

Yes, you can sell a Richmond house with delinquent taxes, and the closing is usually where the taxes get paid. Virginia makes real estate tax a lien ahead of every other lien. A purchaser at a sale "shall cause the proceeds to be applied to the payment of all taxes and levies assessed on real estate" (Va. Code § 58.1-3340).

The options run in order, from least costly to most involved.

1. Pay the balance or set up a plan

If you can pay, or keep a 12-month plan in good standing, that usually costs the least and keeps the house.

2. Sell on the open market

Richmond moves fast on Redfin's numbers. The median sale price was $425,718 over the three months ending August 2026, down 1.0% year over year, with a median of 14 days on market (Redfin, August 2026). Separately, Zillow's typical value for the city was $364,726, up 2.6% (Zillow ZHVI, August 2026).

If the house shows well and time allows, a listing may net you more. If a cash sale isn't your best move, we'll tell you and point you to a local agent who fits. We may receive compensation from agents we refer.

3. Request a cash offer and clear the lien at closing

Propcash is a direct cash homebuyer that makes offers as a principal. You can request a written cash offer on a Richmond house as-is, with the reasoning shown and no fees or commissions charged to you. If you accept, the settlement agent can pay the city's payoff from the sale proceeds.

Propcash cannot stop a tax sale or negotiate with the city for you. A sale has to close before the date set for the judicial sale, and the city, the court, and the title work set that pace. To compare paths, see your options for a Richmond cash offer.

For many owners, the house is worth many times the tax debt. On the illustrative $400,000 house above, two years of unpaid tax plus penalties is about $10,560 before interest. Paying it at closing keeps the rest with you, after any mortgage and other liens.

If your mortgage is also behind, read our guide on Virginia's 60-day notice and the trustee's sale in Richmond. When you are ready, you can request a written cash offer and take your time with it.

Richmond address in Henrico or Chesterfield County?

If your mailing address says Richmond but the house sits in Henrico or Chesterfield County, a county office bills and collects your tax, at a different rate and on different dates. Richmond is an independent city, separate from both counties. Everything above about the November 2026 relaunch applies only to the City of Richmond.

Sources: Henrico's approved tax rates (Henrico County, October 2026) and Chesterfield's fiscal year 2027 budget (Chesterfield County, April 2026). A county tax sale case goes to that county's own circuit court. For the rest of the state, see our Virginia page.

Frequently Asked Questions

When are Richmond real estate taxes due?

City of Richmond real estate taxes are due in two halves, on January 14 and June 14. The rate is $1.20 per $100 of assessed value, and a half not paid on or before its due date draws a 10% penalty plus interest of 10% a year.

What happens if you don't pay real estate taxes in Richmond, VA?

A late Richmond half draws a 10% penalty and 10% annual interest, and the city can add liens and collection fees. Once taxes stay unpaid for two full calendar years by the city's count, the house can enter the Real Estate Tax Sale Program. That program can end in a court-ordered sale.

When will Richmond restart tax sales?

The City of Richmond says its Real Estate Tax Sale Program, paused in January 2023, will relaunch in November 2026. The first sale is expected in 2027: the city's FAQ says the second half of 2027, and a September 2026 memo to City Council says by June 2027.

Can a payment plan stop a Richmond tax sale?

Yes, while the plan stays in good standing. After a Notice of Intent and before the sale notice is mailed, a Richmond owner can ask Finance for a payment plan, and the City Attorney's Office then stops further tax sale action. City arrangements run up to 12 months with no required down payment, and you can start by calling 311.

Can you sell a house behind on property taxes in Richmond?

You can sell a Richmond house with delinquent real estate taxes, and the closing is where they usually get paid. Virginia makes real estate tax a first lien and requires sale proceeds to go to the taxes owed, so the settlement agent typically pays the city's payoff at closing. Once a tax sale case is filed, the full payoff, including costs and attorney fees, must be paid before the date set for the judicial sale.

Do you get any money if a Richmond house is sold for taxes?

The former owner or heirs can claim any surplus left after the taxes, penalties, interest, attorney fees, costs, and liens are paid. The claimant must prove the right to it, and surplus unclaimed two years after the court confirms the sale goes to the city.