Property Tax Delinquency in Pinellas and Hillsborough County, FL

Owning a home is often considered one of life’s greatest achievements. However, circumstances can change unexpectedly—whether it’s a sudden loss of income, inheriting a property you weren’t financially prepared for, or simply falling behind due to life’s many demands. If you live in Pinellas or Hillsborough County, Florida, and you’ve found yourself behind on property taxes, you’re not alone. Each year, thousands of homeowners in the Tampa Bay area face tax delinquency, a situation that can feel overwhelming and confusing. In this article, we’ll gently guide you through what happens when property taxes go unpaid, demystify the terms “tax certificate” and “tax deed sale,” and help you understand why addressing the situation early can make all the difference.

What Happens When a Homeowner Doesn’t Pay Property Taxes?

In the state of Florida, property taxes are due each year by March 31 for the prior tax year. If the taxes remain unpaid, they become delinquent on April 1. So, if you get a tax bill in 2025 and don't pay it in full by March 31st, 2026 -- on April 1st, 2026, it is considered delinquent.

At that point, the county tax collector adds a mandatory 3% interest penalty to the bill and begins accruing interest (up to 18% annually) on the unpaid amount. The delinquent property is also scheduled for public notice: Florida law requires the tax collector to advertise the delinquent properties in a local newspaper once a week for three weeks prior to a tax certificate sale.

During this period (April through May), the homeowner still has an opportunity to pay the taxes PLUS the accrued interest and advertising fees to cure the delinquency. If the delinquent taxes remain unpaid by late May, the account will be included in the county’s annual tax certificate auction (held on or before June 1) .

The early stages of tax delinquency involve added costs and warnings but not an immediate loss of the property. The owner will receive notices (by mail or electronically) about the delinquency and the impending certificate sale. However, if no payment is made by the deadline of May, the process escalates to a tax certificate sale as described in the next section. Importantly, at this stage the homeowner does not lose the home yet – but a lien is placed on the property for the unpaid taxes, and significant interest continues to accrue. For each consecutive year of taxes unpaid, the county repeats this process.

So Then.. What Is a Tax Certificate and How Does It Work?

A tax certificate is a legal document representing an enforceable first lien against a property for unpaid property taxes. It is not a sale of the property itself, but rather a sale of the tax debt. Each year, the county holds a public auction where investors bid to pay off the delinquent taxes on behalf of the owner. This is done because the county's main priority is to receive the taxes due.

The bidding is done in a reverse auction style: bidders compete by offering the lowest interest rate they are willing to accept on the repayment of the tax debt. The auction starts at the statutory maximum 18% annual interest and bidders drive the rate down – the certificate is awarded to the investor who accepts the lowest interest rate on that debt. In Pinellas County, for example, many certificates are bid down to very low rates (0.25% or even 0% in some cases) given competitive demand. If no one bids on a delinquent tax, the certificate is “struck off” (issued) to the county at 18% interest by default. This means the county holds the tax certificate and 18% interest is applied with each passing month on the accruing tax debt.

The purpose of a tax certificate is to allow the county to recover the unpaid taxes quickly (ensuring funding for schools, roads, and other services) by effectively borrowing the money from an investor. The investor, in turn, earns interest on the amount paid. From the homeowner’s perspective, the issuance of a tax certificate means that a lien for the unpaid taxes now exists against their property – but the homeowner still owns the property at this stage.

The certificate holder does not obtain any property rights or title by virtue of purchasing the lien. Instead, the certificate itself is an investment that yields interest once the homeowner pays off (redeems) the delinquent taxes. To redeem the tax certificate, the property owner must pay the county tax collector all the owed taxes plus accrued interest, advertising costs, and fees. Upon payment, the tax collector then repays the certificate holder and the lien is removed from the property.

Notably, Florida law provides that even if a certificate’s auctioned interest rate was very low, the redeemer must pay at least a minimum 5% interest on the certificate if redeemed within the first year  – ensuring the investor earns something for fronting the tax payment. Tax certificates are not reported to credit bureaus and are not recorded like a mortgage, but they are a priority lien against the property. This means that the unpaid property taxes must be dealt with before the owner can sell or refinance the property, and they continue accruing interest until paid or until further action is taken.

The Three-Year Point: From Tax Certificate to Tax Deed Sale

While a tax certificate can remain outstanding (unpaid) for up to seven years in Florida before it expires, the critical milestone comes at two years after delinquency. Under Florida law, once two years have passed from April 1 of the year the tax certificate was issued, the certificate holder gains the right to initiate a tax deed application. In practical terms, this often ends up being roughly 3 years from the initial missed tax payment. For example, if a homeowner failed to pay 2022 taxes (due by March 31, 2023), a certificate was issued in June 2023; the certificate holder could apply for a tax deed as early as April 1, 2025 -- two years after the certificate’s issue year.

Applying for a tax deed is the step that moves the process from a lien on the property to a FORCED sale of the property. In Pinellas County, certificate holders use an online system LienHub to request a tax deed sale once eligible. Upon application, the tax collector will require the certificate holder to pay any other outstanding taxes or costs on the property and then forwards the case to the Clerk of Court to schedule a public auction of the property (this is the “tax deed sale”).

The homeowner is given notice that a tax deed application has been filed and that the property will be sold if the delinquency isn’t resolved. In Pinellas, the Tax Collector’s office even sends a courtesy warning letter each February to any owner whose property is approaching the two-year mark of delinquency, giving a final deadline (usually the last business day of March) to pay before the certificate holder can move forward. Once that deadline passes and the application is made, the full amount of all unpaid taxes, interest, and costs is essentially “locked in” as a lump sum that must be paid to stop the process. Partial payments are not accepted once the tax deed process begins – the entire debt must be paid in full to redeem the property and halt the sale.

From the time of a tax deed application, it typically takes a few months for the Clerk of Court to actually hold the auction. In Pinellas County, a tax deed sale generally occurs about 3–6 months after the application is filed (this allows time for required notices, title research, and advertising of the sale). The auction itself is usually held online, open to the public, and the property is sold to the highest bidder for cash. If the original owner (or someone on their behalf) redeems the property by paying the full amount due before the auction, the sale is canceled and the owner keeps the property. But if the auction proceeds, the highest bidder obtains a tax deed to the property, which conveys ownership without the consent of the prior owner (this is effectively a foreclosure due to the tax lien).

The proceeds of the sale are used to pay off the tax certificate holder (and any other tax liens or costs). Any excess auction funds above the taxes owed are held by the county as surplus funds. If nobody bids at the tax deed auction, the property typically defaults to the county which means the county gets a deed to the property. In either case, the original homeowner’s rights to the property are terminated which means losing the property.

The three-year point of delinquency is pivotal. It marks the time when the tax certificate holder (investor) can force the property to be sold for the back taxes. Homeowners are given a substantial window (at least two years after the certificate sale) to redeem the property, but once that window closes, they stand to lose their home entirely through a tax deed sale if they haven’t acted.

In Florida, even homestead properties (which are protected from many creditor actions) are not protected from tax foreclosure. The state constitution’s homestead exemption does not shield a homeowner from losing their primary residence due to unpaid property taxes. The tax collector can pursue a tax deed sale on homesteaded property just the same, although there are a few additional rules (for example, if the delinquent tax is under $250 on a homesteaded property, the certificate is issued to the county rather than sold at auction ). Ultimately, no owner consent is needed – the county’s statutory power to collect taxes through selling the lien and the property is paramount.

How Many Properties Enter Tax Delinquency Each Year?

Property tax delinquency is not a rare occurrence – each year thousands of properties in the Tampa Bay area fall behind on taxes and enter the tax certificate process. Hillsborough County, being larger, typically has the highest numbers. For example, in the 2019 tax certificate auction (for 2018 taxes), Hillsborough had about 16,833 delinquent tax certificates that were sold to investors . Pinellas County in that same year had about 11,450 certificates sold. Combined, those two counties saw over 32,000 properties with unpaid taxes for 2018. This represented roughly $80 million in delinquent taxes that investors paid on behalf of property owners through certificates.

In more recent years, the numbers have remained significant. According to the Pinellas County Tax Collector’s office, the 2023 tax certificate sale (covering 2022’s unpaid taxes) involved 10,184 delinquent tax certificates offered, of which 10,163 were sold to investors. This suggests about ten thousand Pinellas properties had taxes go unpaid and had liens auctioned that year. Hillsborough County’s 2023 sale was even larger – data indicate roughly 17,000 certificates were offered, with just under that amount sold to investors (only a small fraction went unsold)【32†L0-L3**】. In short, Hillsborough often sees on the order of 16,000–17,000 delinquent tax bills each year, while Pinellas sees on the order of 9,000–12,000 per year, depending on economic conditions. Economic downturns or crises can cause spikes in delinquency, whereas growth periods might see slight improvements. Nonetheless, thousands of Tampa Bay homeowners annually face tax delinquency, underscoring that this is not an unusual scenario. Each of those delinquent accounts goes through the certificate sale process described above, illustrating how widespread the issue is.

(For context, these figures cover all types of property – not only owner-occupied homes but also commercial properties, rentals, vacant land, etc. Even high-value and commercial properties show up in delinquency lists; for example, one year’s list included a Hampton Inn hotel in Tampa and a busy Wawa gas station that had unpaid taxes. So, the issue cuts across all property types in the area.)

Consequences for Homeowners Who Don’t Address Tax Delinquency

The consequences of not paying property taxes are serious and escalate over time. Here are the major negative outcomes a homeowner will face if they fail to act on a tax delinquency:

• Mounting Debt and Fees: The longer the taxes go unpaid, the more the debt grows. Florida imposes up to 18% annual interest on delinquent taxes (calculated monthly) . On April 1 of the delinquent year, an immediate 3% penalty is added, and additional advertising charges and administrative fees are added to cover the costs of the required public notices . Even if an investor bids a low interest rate at the certificate sale, the homeowner is typically still on the hook for a minimum 5% interest if they redeem within the first year . All these costs can rapidly increase the payoff amount. The longer one waits, the more expensive it becomes to save the property, as interest accrues month after month on the unpaid balance.

• Lien on the Property: Once a tax certificate is issued, the property has a lien against it. While this lien might not show up on a credit report , it clouds the title. The owner generally cannot sell the property or refinance it without clearing the tax lien. Any potential buyer or lender will see that back taxes are owed (and in a title search it will show that a tax certificate exists). This can put the homeowner in a tight spot financially, as it limits options to leverage the property’s value. In some cases, mortgage lenders will pay off the delinquent taxes on behalf of the owner (to protect their interest) and then demand reimbursement, or even consider it a default under the mortgage terms.

• Loss of Property and Equity: The ultimate consequence is losing the home through a tax deed sale. If the taxes remain unpaid long enough (two years after the certificate, as described above), the home can be sold at a public auction without the owner’s consent . This means the homeowner could forfeit the entire property over what might have been a relatively small tax debt. They also stand to lose any equity they had. While, as noted, the former owner can claim any surplus funds from the auction, this requires action on their part. If the property is sold for only the amount of taxes due (or a modest sum above it), the owner essentially loses the property’s equity. For example, a homeowner might owe $5,000 in taxes; if the home is worth $200,000 but sells at a tax auction for $50,000, the $45,000 surplus would be available to claim – but the owner has still lost a $200,000 property for failure to pay $5,000 (and may or may not successfully recover the surplus). In reality, many tax deed sales result in distress prices, and not all former owners promptly claim their surplus, meaning loss of wealth can occur.

• Legal and Personal Repercussions: Beyond the financial loss, there are other negative impacts. The process is public, and delinquent tax lists are published in newspapers, which can be embarrassing. (Public records show even prominent individuals have found themselves on delinquency lists. In one notable case, a Pinellas County official’s employment was impacted after it came to light they had repeatedly fallen behind on property taxes .) Additionally, being delinquent on taxes might disqualify a person from certain public positions or assistance programs. The stress and uncertainty of facing a potential forced sale can also take a personal toll on homeowners and families.

• Impact on Inherited or Distressed Properties: The situation often affects people who have inherited homes or are dealing with other financial or property distress. For instance, someone who inherits a house might not realize they need to keep paying property taxes, or an owner of a distressed property (in disrepair or facing other liens) might put off the tax bills. Unfortunately, the tax delinquency process will proceed against any property, regardless of circumstance. Inherited property can be lost just like any other if the heir doesn’t pay the taxes. Likewise, a homeowner struggling with job loss or medical bills might find the property tax bill easier to ignore in the short term – but after two years, they could lose the home entirely. In some cases, filing a Chapter 13 bankruptcy to spread out tax payments over a few years can be a strategy to prevent immediate loss of the home , but this is a complex remedy and not always available or desirable. The best course for a homeowner in trouble is to address the tax issue early – seek a payment plan if available, communicate with the tax collector, or even consider selling the property before it gets to a tax deed sale in order to preserve whatever equity might be left.

Homeowners in the Tampa Bay area (and Florida in general) should treat property taxes as a top priority. The tax delinquency process in Pinellas and Hillsborough is highly structured and automated: if you don’t pay, a lien will be sold on your property, and after about two years of non-payment, you can lose your home. The counties have the legal power to auction your property to recover taxes, and they exercise that power regularly. The consequences include steep financial penalties, damage to one’s property rights, and ultimately the risk of forfeiting both the home and any equity in it. The silver lining is that at every stage up until the auction, the homeowner has opportunities to fix the situation – by paying the taxes due (with interest) and stopping the process or selling their home before the tax deed sale. The key is not to ignore the problem. If you’re a homeowner facing unpaid property taxes, or you’ve inherited a house with back taxes owed, seek advice and take action early by giving us a call at 815-830-7894. By understanding this process and acting promptly, you can protect your home from the tax delinquency spiral.

Sources: Official Pinellas County Tax Collector FAQs and reports, Hillsborough County Tax Collector data, Florida Statutes (Chapter 197) as summarized by Nolo, Bay Area Legal Services guidance for homeowners, and Tampa Bay Times reporting on local tax delinquency statistics and cases.