If you fall behind on a Montgomery County delinquent property tax bill, the county does not freeze your bank account or garnish your wages. Instead, Maryland law requires the county to sell a lien on your property to a third-party bidder at an annual June auction, and interest and penalties start piling up at 1⅔% per month the day after you miss a due date.1Maryland Tax-Property Article You keep the right to redeem the property by paying what you owe, but the longer you wait, the more it costs.
When You’re Delinquent and What It Costs
Montgomery County’s property tax year runs July 1 through June 30. You can pay the full bill once a year or split it into two semi-annual installments due September 30 and December 31. Miss either deadline and the account is delinquent the next day. There is no grace period.
Interest and penalties accrue at 1⅔% per month on the unpaid balance, and that rate applies to any fraction of a month. Being three days late costs the same as being 29 days late. Over a full year, the charge works out to 20% on top of the original tax.
Postmark dates don’t count. The county posts payments as received, so a check mailed on September 30 that arrives October 3 triggers the full monthly penalty.
The Lien on Your Property
Under Maryland law, unpaid property taxes automatically become a lien on your real property from the date they came due. The lien stays attached to the property until the taxes are paid and only terminates after 20 years if nothing is ever done about it. You still own the home, but you cannot sell or refinance with clean title until the debt clears.
For personal property taxes, the county can also record the lien in circuit court judgment records, where it attaches to any real property the same taxpayer owns. The lien is the legal foundation for everything that comes next: the tax sale, the certificate issued to the buyer, and ultimately the risk of foreclosure.
The June Tax Lien Sale
The tax sale is mandatory under Maryland law. The county collector must sell any property with taxes in arrears. Montgomery County holds a public sealed-bid sale on the second Monday of June each year at 27 Courthouse Square, Suite 200, in Rockville.
At the sale, the county’s lien is auctioned to the highest bidder. The winning bidder pays the county the full amount owed, and the lien transfers to that purchaser, who receives a certificate of sale. No lien can be sold for less than the advertised price.
The sale does not transfer ownership of your home. The purchaser buys your debt, not your property. You keep title and keep the right to redeem by paying what you now owe to the certificate holder.
Notices You’ll Get Before the Sale
Maryland law requires several layers of notice before a tax sale. At least 30 days before the property is first advertised, the collector must mail a statement to the last known owner at the address on the tax rolls. That statement names the owner, lists the amounts owed, and warns that the property will be sold if the taxes aren’t paid within 30 days.
The mailing must also include a plain-language summary of the tax sale process, information about the State Tax Sale Ombudsman, contact information for free housing counseling services, and details about the Homeowners’ Property Tax Credit. Expanded notice requirements take effect under statutory amendments beginning in 2027.
On top of the mailed notice, the county publishes delinquent properties once a week for four consecutive weeks in a local newspaper before the sale. That advertising adds a $60 fee to your bill. The tax sale notification itself goes out by mail in April and shows what you’ll owe if you pay in April, May, or June.
If you receive an April notification, don’t wait. The 30-day notice window, the advertising, and the monthly penalty all run during that stretch, and the balance keeps climbing.
Redeeming Your Property
Even after the lien is sold, you can still redeem the property. Maryland law preserves your right to redeem at any time until a court order finally forecloses that right. There is no fixed redemption deadline, only the foreclosure process can extinguish your ability to pay and reclaim the home.
To redeem before the certificate holder files a foreclosure action, you’ll need to pay:
- The original lien amount, meaning the taxes owed at the time of sale plus interest
- Any subsequent taxes, interest, and penalties the certificate holder paid on your behalf after the sale
- Any additional taxes, interest, and penalties that accrued after the sale date
- The certificate holder’s recording costs, a title search fee capped at $250, postage and certified mailing costs, and reasonable attorney’s fees capped at $500
The redemption interest rate in Montgomery County is 6% per year, or as fixed by the County Council. The certificate holder cannot add reimbursable expenses incurred during the first four months after the sale. After four months, those costs can be included. If you and the certificate holder disagree on what’s owed, you can ask the circuit court to determine the exact redemption amount.
Foreclosure of Your Right to Redeem
The certificate holder cannot immediately take your property. For most properties, they must wait at least six months after the sale date before filing a complaint to foreclose your right of redemption. For owner-occupied residential properties, the waiting period is nine months.
Once a foreclosure action is filed, redemption becomes more expensive. The attorney’s fee and expense caps that applied before filing no longer limit things the same way. If you redeem after the foreclosure action is filed, you’ll pay the original lien amount plus interest, any taxes the certificate holder paid, accrued delinquencies, and the attorney’s fees and expenses the certificate holder incurred in the foreclosure proceeding.
The certificate of sale becomes void if the holder doesn’t file foreclosure proceedings within two years of the sale date. That’s a hard deadline for the purchaser, but counting on it is risky. Sophisticated tax lien investors rarely miss the window.
How to Pay What You Owe
Montgomery County offers four ways to pay a property tax bill, including a delinquent one. You’ll need your eight-digit bill or account number, or your street address, to look up the balance.
- Online at the county’s real property tax portal (apps.montgomerycountymd.gov): electronic checks are free; credit and debit cards carry a 2.3% processing fee
- By phone at 240-777-8898: electronic check (no fee) or credit/debit card (2.3% fee)
- In person at 27 Courthouse Square, Suite 200, Rockville, MD 20850: check, credit/debit card (2.3% fee), or cash
- By mail: check payable to “Montgomery County Government MD” sent with the payment slip to Montgomery County MD, PO Box 824845, Philadelphia, PA 19182
The county does not accept money orders through any channel. If your property is already listed for the June sale, the April notification bill shows the payoff for each month leading up to it. To get a current payoff after the sale, you’ll need to submit a service request through the county’s finance office for the exact figure, including lien holder information.
Credits That May Keep You Out of the Sale
If paying property taxes has become a struggle, several credit programs are worth looking into before the account slides into tax sale territory.
Residents over 65 who have lived in their home for at least 40 consecutive years, and whose home is assessed at $700,000 or less, can apply for a 20% credit on county property taxes. The same 20% credit is available to military retirees over 65, including surviving unremarried spouses, whose home is assessed at $550,000 or less. The credit lasts seven consecutive years and only requires one application. The deadline is April 1 to take effect in the next fiscal year.
Maryland also offers a statewide Homeowners’ Property Tax Credit based on income. Your tax sale notice is required by law to include information about this credit and how to apply. The State Tax Sale Ombudsman, whose contact information also appears in the notice, can help you work out what you qualify for and walk you through the application.