A tax sale in Pennsylvania is the county Tax Claim Bureau’s public auction of a property whose owner has fallen behind on real estate taxes, and it moves through a statutory sequence that takes roughly 18 to 21 months from delinquency to the auction block. The property can pass through up to three different sale types (upset, judicial, and repository), and each one conveys a different quality of title to the buyer. Pennsylvania gives owners several chances to pay before the gavel falls, but once a sale is confirmed absolutely, there is no post-sale redemption period.
The Timeline From Delinquency to Auction
Property taxes in Pennsylvania are due by December 31 of the year they are levied. Miss that date and the taxes are delinquent.
During the following year, local taxing authorities certify the unpaid taxes to the county Tax Claim Bureau. The bureau then sends a return and claim notice by certified mail, telling the owner that a tax claim has been entered against the property. If the claim is still unpaid by January 1 of the next year, it becomes “absolute” and the property is eligible for sale.1Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.601 – Date of Sale
In that second year, the bureau prepares the sale: it sends upset sale notices, advertises in newspapers, and posts the property itself. The auction must take place no earlier than the second Monday in September and no later than October 1.1Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.601 – Date of Sale
The Three Types of Tax Sales
Pennsylvania uses three distinct sale types in sequence. The type of sale determines what liens are wiped out and what the buyer actually receives.
Upset Sale
The upset sale is the first attempt to sell. The bureau sets a minimum bid called the “upset price,” equal to all delinquent state tax liens, tax claims and judgments with interest, accrued taxes for the current year, certified municipal claims, and the costs of sale.2Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.605 – Upset Price The property cannot be sold for less. If no one bids the upset price, the sale is continued.
The catch: an upset sale does not wipe out all liens. Mortgages, private judgments, and other non-tax encumbrances survive and pass to the buyer along with the property. Under Pennsylvania’s general rule, a judicial or other sale does not affect the lien of a first-priority mortgage.3Pennsylvania General Assembly. Pennsylvania Code 42 PaCS 8152 – Judicial Sale as Affecting Lien of Mortgage A bidder could win a house for $5,000 in back taxes and inherit a $150,000 mortgage on top of it. Run a title search before you bid.
Judicial (Free and Clear) Sale
When a property fails to sell at upset because no one meets the minimum bid, the bureau can petition the Court of Common Pleas for a judicial sale, also called a “free and clear” sale.4Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.610 – Petition for Judicial Sale If the petition is not filed within ten months of the upset sale, the bureau must file within the following two months.5Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.616 – Mandatory Judicial Sale
The court issues a rule ordering all interested parties (including mortgage holders and lienholders) to appear and show cause why the property should not be sold free and clear. If the court is satisfied, it orders the property sold stripped of all tax claims, municipal claims, mortgages, liens, charges, and estates, with the sole exception of separately taxed ground rents. The buyer receives absolute title.6Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.612 – Judicial Sale Proceedings
Repository Sale
Properties that still don’t sell at judicial sale go into the county’s “repository for unsold properties.” The bureau can accept an offer at any price, provided every local taxing district consents in writing to a minimum purchase price.7New York Codes, Rules and Regulations. Pennsylvania Code 72 PS 5860.627 – Sale of Property in Repository Repository conveyances are free and clear of all tax and municipal claims, mortgages, liens, and other encumbrances (again, except separately taxed ground rents). Prices are often very low, but repository properties are the ones nobody else wanted, so condition problems are common.
Notice the Bureau Must Give Before the Sale
Pennsylvania law imposes strict notice requirements, and failure to follow them can invalidate the sale. This is the most litigated aspect of Pennsylvania tax sales.
At least 30 days before the sale, the bureau must publish notice in at least two newspapers of general circulation in the county (if that many exist) and once in the county’s designated legal journal. The notice must include the purpose, time, and place of the sale, the approximate upset price, a description of each property, and the owner’s name.8Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.602 – Notice of Sale
The bureau must also send notice directly to each owner by certified mail (restricted delivery, return receipt requested) at least 30 days before the sale. If a signed return receipt does not come back from every owner, the bureau must follow up by first-class mail at least 10 days before the sale, using the last known address as determined by the bureau, the local tax collector, and the county assessment office. The property itself must be physically posted at least 10 days before the sale.8Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.602 – Notice of Sale
How an Owner Can Stop the Sale
If you own the property, you have two ways to keep it off the block. The straightforward one is to pay all delinquent taxes, interest, and costs in full before the auction date. Once you do, the bureau must remove the property from the sale.
If paying in full is not possible, the bureau may allow an installment agreement. You pay 25 percent of the total amount due on all tax claims and judgments up front, then pay the remaining balance in no more than three installments over the following year. The sale is stayed while you stay current.9Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.603 – Installment Agreements
Default has real consequences. Any payments already made are applied to the oldest delinquent taxes, and if that doesn’t bring you current enough to stay off the sale list, the property goes back up. After a default, the bureau will not enter another installment agreement with you for three years.9Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.603 – Installment Agreements
Who Can Bid and How the Auction Runs
Tax sale auctions are conducted by the county Tax Claim Bureau, and registration and payment logistics vary by county. Most counties require pre-registration and a sworn affidavit.
Bidders must certify that they are not delinquent on real estate taxes anywhere in Pennsylvania, that they have no municipal utility bills more than a year overdue, and that they have not had housing code violations or permit revocations in recent years. Critically, the former owner of the property being sold cannot bid on it at a judicial sale, a private sale, or from the repository.10Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.618 – Repurchase by Owner “Owner” is defined broadly and reaches any individual, partner, shareholder, or business entity that held any ownership interest. Signing a false affidavit can lead to criminal prosecution.
At an upset sale, bidding starts at the upset price. At a judicial sale, the court order may require bids to at least cover costs. The highest bidder wins, and purchasers typically pay the full bid on the day of the sale by cash or certified check.
What Happens After the Auction
After an upset sale, the bureau has 60 days to file a consolidated return with the Court of Common Pleas listing every property offered, the owner, the purchaser, and the price. Within 30 days of receiving the return, the court reviews it and, if the sale appears proper, issues a confirmation nisi (a provisional approval).11Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.607 – Consolidated Return to Court, Notice, Confirmation, Appeal
Within 30 days of the sale, the bureau must notify each former owner that the property was sold and that they may file objections. Objections must be filed no later than 30 days after the confirmation nisi. If no one objects, the sale becomes final and the prothonotary enters a decree of absolute confirmation.11Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.607 – Consolidated Return to Court, Notice, Confirmation, Appeal
There is no post-sale redemption period. Once the sale is confirmed absolutely, the former owner cannot reclaim the property by paying the taxes. The sale passes good and valid title to the purchaser, and courts will not revisit the validity of the tax, the entry of the claim, or the bureau’s procedures.11Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.607 – Consolidated Return to Court, Notice, Confirmation, Appeal The only remaining avenue for a former owner is a procedural challenge, most commonly a showing that the bureau failed to give proper notice.
After the purchaser pays in full, the bureau prepares and delivers the deed.6Pennsylvania General Assembly. Pennsylvania Code 72 PS 5860.612 – Judicial Sale Proceedings Recording is the buyer’s responsibility and expense, and tax sale deeds are exempt from Pennsylvania’s realty transfer tax.12Pennsylvania Department of Revenue. Realty Transfer Tax – Chapter 91
What Happens to Money Left Over
When a property sells for more than the total debts against it, the surplus is distributed by the bureau in statutory order after its authorized costs:
- Commonwealth tax liens.
- Local taxing districts (county, municipal, and school) proportionally.
- Municipal claims such as water and sewer.
- Mortgages and other liens, in priority order, whether or not the sale discharged them.
- The former owner receives anything left.
Before releasing any money, the bureau must petition the Court of Common Pleas to confirm the proposed distribution. Each person entitled to funds gets notice and a chance to object. Once the court confirms, the distribution is final.13Pennsylvania General Assembly. Real Estate Tax Sale Law – Act 542 of 1947
Former owners have three years from the date of the sale to claim surplus funds. Miss that window and the money is distributed to the local taxing districts based on their tax rates, with interest going to the county.13Pennsylvania General Assembly. Real Estate Tax Sale Law – Act 542 of 1947 The county will not chase you down. If you lost property at a tax sale, contact the Tax Claim Bureau directly, ask whether a surplus exists, and request a distribution affidavit.
Getting Possession of the Property After You Win
Winning the auction and recording the deed does not give a buyer an empty house. If the former owner or tenants remain in the property, you cannot change the locks or call the sheriff on your own. Pennsylvania law requires a tax sale purchaser to file an ejectment action in the Court of Common Pleas to remove occupants, and the Pennsylvania Supreme Court confirmed in 2019 that the Landlord and Tenant Act does not apply because there is no landlord-tenant relationship between a tax sale buyer and the residents.
Ejectment cannot be filed in a magisterial district court; that court lacks jurisdiction. A corporate or LLC purchaser must hire an attorney to file. Timelines vary by county, but plan on several months and legal fees before you can take possession or begin work on the property.