Is Massachusetts a Tax Deed or Tax Lien State?

Massachusetts is neither a tax deed state nor a tax lien state in the usual sense. When property taxes go unpaid, the city or town itself takes the first legal claim through a process called a “tax taking,” and the matter eventually moves to the Massachusetts Land Court for a foreclosure of the owner’s right of redemption. Private investors can enter the picture, but only through specific channels the municipality controls, and the homeowner keeps a right to redeem until the Land Court enters final judgment.

Where Massachusetts Sits Compared to Other States

In a tax deed state, the local government eventually auctions the property itself, and the winning bidder receives a deed. In a tax lien state, the government sells the debt; the buyer collects taxes plus interest from the owner and can foreclose if the owner never pays.

Massachusetts does neither. The municipality takes the lead role from start to finish, and outside buyers only participate if the city or town decides to bring them in.

How a Tax Taking Works

A municipal lien attaches to the property automatically the moment taxes are assessed, by operation of law, and it covers real estate taxes along with water and sewer charges.¹² If a bill goes unpaid for 30 days, the municipality sends a formal demand to the owner’s last known address, and the owner has 14 days to pay.

If payment still doesn’t arrive, the tax collector can record an “instrument of taking” at the county registry of deeds.² That recording is the tax taking. It does not transfer ownership. It creates what Massachusetts law calls a “tax title” in the name of the city or town, a formal legal claim that the municipality can convert into ownership later if nothing is paid.³ The owner still lives there. The owner can still redeem.

After the taking, the account moves from the tax collector to the municipal treasurer, who manages it from that point on.¹

When Private Buyers Can Step In

A municipality isn’t required to handle the whole process alone. Three mechanisms let a private party take over.

Assignment auction. If the city or town already holds a tax title, it can auction that title to the highest bidder. The treasurer advertises in a local newspaper and posts notice in at least two public places at least 14 days before the auction, and mails notice to the taxpayer at least 10 days before. The winner pays within two weeks, and an instrument of assignment is filed at the registry of deeds.
Bulk sale. Before any taking happens, a municipality can bundle past-due bills and assign collection rights to a private party through a request-for-proposal process. That party then steps into the municipality’s shoes and can pursue a taking and eventual foreclosure.
Tax sale. Instead of a taking, the municipality can hold a public auction that sells a tax title directly to a buyer, who then files a collector’s deed at the registry of deeds.

In every case the private buyer inherits the same rights the municipality had, including the ability to petition the Land Court for foreclosure.¹ For residential property, extra notice applies: notice must be mailed to the taxpayer’s home or place of business, posted on the property itself, and posted in a public place.

Turning a Tax Title Into Ownership

A tax title is not the same as owning the property. To become the owner, the holder must petition the Massachusetts Land Court for a foreclosure of the right of redemption. The Land Court has exclusive jurisdiction over these cases.⁴

There is a mandatory waiting period. Under the current version of Chapter 60, Section 65, the petition can generally be filed six months after the taking, though for older takings the wait may be 12 months.² The period can be shortened if the buildings have been found abandoned, if the amount owed exceeds the property’s assessed value, or if the record owner consents in writing.⁵

The petition must describe the property, state its assessed valuation, and identify the petitioner’s source of title.⁵ Every party with an interest in the property, including mortgage holders and other lienholders, must be notified and given a chance to redeem. If nobody does so by the court’s deadline, the Land Court enters a foreclosure judgment that wipes out all prior ownership rights and encumbrances and vests absolute title in the tax title holder.⁶

For investors, that court-ordered judgment is the appeal of the Massachusetts system: clean title, no lingering mortgages. Even so, title insurers tend to be cautious with property that moved through any tax process, so budget for a quiet title action or title certification before resale.

Redeeming Before Foreclosure Is Final

A Massachusetts homeowner can redeem at any time after the tax taking, right up until the Land Court enters a final foreclosure judgment.³ After the judgment, that right is gone for good.

Redeeming means paying the full tax title balance plus interest and any added charges. The interest rate depends on when the taking occurred:

Tax titles entered on or after November 1, 2024 accrue interest at 8% per year.⁷
Tax titles entered before November 1, 2024 continue to accrue at the old rate of 16% per year.⁷

Under the old 16% rate, a $5,000 debt could grow by $800 a year in interest alone on top of fresh taxes, costs, and fees. The new rate cuts that in half for post-2024 takings.

If a tax title has been assigned to a private party, the redemption amount is based on the sum stated in the instrument of assignment plus additional interest from the assignment date at the same rate.⁸ Massachusetts law also allows redemption in installments, though all accrued interest must be paid in full with each installment.

What Happens to the Owner’s Equity

A long-standing risk in any tax foreclosure system is that an owner can lose a property worth far more than the unpaid tax. In 2023 the U.S. Supreme Court held in Tyler v. Hennepin County that a government cannot keep the surplus value from a tax foreclosure beyond the amount actually owed, finding that retaining excess equity amounts to an unconstitutional taking under the Fifth Amendment.⁹

Massachusetts law now reflects that protection. Chapter 60, Section 64 provides that a foreclosure judgment does not eliminate the former owner’s right to receive any excess equity, and any sale or retention of the property by a municipality or other foreclosing party must comply with Section 64A, which governs how surplus proceeds are handled.⁴ If a municipality forecloses on a home worth $300,000 over a $10,000 tax debt and sells the property, the former owner is entitled to the difference once the debt, interest, costs, and fees are paid.

1
Mass.gov. Tax Lien Foreclosure Informational Outline
2
Mass.gov. The Tax Lien Foreclosure Process
3
Mass.gov. Frequently Asked Questions About Tax Lien Foreclosure Cases in the Land Court
4
General Court of Massachusetts. Massachusetts General Laws Chapter 60 Section 64 – Absolute Title After Foreclosure; Right to Receive Excess Equity
5
General Court of Massachusetts. Massachusetts General Laws Chapter 60 Section 65
6
Mass.gov. Ask DLS: Takings and Foreclosures
7
Mass.gov. Ask DLS: Tax Title Reform – Part 2
8
Mass.gov. Massachusetts General Laws Chapter 60 Section 62
9
Supreme Court of the United States. Tyler v. Hennepin County, Minnesota