Selling land with back taxes in Alabama
Yes, you can sell Alabama land that has back taxes. The unpaid taxes are paid from the sale at closing. What matters is timing, because once the land goes to a tax sale your window gets shorter.
Request an offerHow Alabama handles unpaid property taxes
Alabama uses a mix of lien and deed rules, depending on who buys at the sale. Read the redemption rule below closely, because it decides how long you have.
The redemption rule in Alabama: In tax sale counties, the owner can redeem within 3 years, or until title leaves the state if the state bought the land. In tax lien counties, the owner can redeem until judgment in the lien buyer's foreclosure suit, filed 4 to 10 years after the auction. The county tax collecting official picks one method each year for all property in the county. An owner who kept possession can still redeem in court after the tax deed issues. For unoccupied land, the owner keeps possession until the tax buyer adversely possesses it for 3 years after becoming entitled to possession. Redeeming from a tax sale costs the bid, later taxes the buyer paid and 8% yearly interest, plus costs and fees. Redeeming a lien costs the lien amount plus the interest rate bid at auction, at most 12%, and attorney fees once a suit is served.
Law: Ala. Code 40-10-120 to 40-10-122, 40-10-82, 40-10-83, 40-10-180, 40-10-184, 40-10-193 and 40-10-197. Rules change, so confirm with the county tax collector.
What to do before the tax sale
- Call the county tax office and get the exact amount owed and the next sale date.
- Decide whether you want to keep the land. If not, selling before the sale stops the interest and penalties from growing.
- Gather the parcel number and any tax bills. A buyer and the title company need them to order a payoff.
Alabama land at a glance
- Average farm real estate value: $4,250 per acre (2026, USDA).
- Average property tax on farmland: about $8.63 per acre per year (2022 Census of Agriculture).
- Transfer tax: Deed tax of $0.50 per $500 of value or fraction thereof (about 0.1% of price). A Real Estate Sales Validation Form (RT-1) showing price or value must be filed when the deed is recorded.
- Seller disclosure: Alabama has no mandatory statewide seller disclosure form and follows caveat emptor. Sellers still cannot commit fraud, and licensees have separate statutory duties.
These are statewide averages, not an appraisal. See selling land in Alabama for county values, or try the land value estimator.
How a cash sale handles this
Liberty Acres is a family-owned cash land buyer. We buy land anywhere in the US, in any condition, including land with back taxes, inherited land and land with no road access. We pay back taxes and all closing costs, use no agents and charge no commissions, and close through a title company, escrow company or real estate attorney who pays you by wire or check.
Common questions
Can I sell my land in Alabama if I owe back taxes?
Yes. The back taxes are paid from the sale at closing through the title company. Liberty Acres pays back taxes and all closing costs.
How long do I have to redeem land after a tax sale in Alabama?
In tax sale counties, the owner can redeem within 3 years, or until title leaves the state if the state bought the land. In tax lien counties, the owner can redeem until judgment in the lien buyer's foreclosure suit, filed 4 to 10 years after the auction. The county tax collecting official picks one method each year for all property in the county. An owner who kept possession can still redeem in court after the tax deed issues. For unoccupied land, the owner keeps possession until the tax buyer adversely possesses it for 3 years after becoming entitled to possession. Redeeming from a tax sale costs the bid, later taxes the buyer paid and 8% yearly interest, plus costs and fees. Redeeming a lien costs the lien amount plus the interest rate bid at auction, at most 12%, and attorney fees once a suit is served.
Can I still sell after the tax sale?
It depends on the Alabama rule above. If the law gives a redemption period after the sale, you can redeem or sell during it, but the payoff grows and title work gets harder. If it does not, your ownership ends when redemption ends, so sell before then.
Sources
- Alabama tax sale law: Ala. Code 40-10-120 to 40-10-122, 40-10-82, 40-10-83, 40-10-180, 40-10-184, 40-10-193 and 40-10-197
- USDA NASS Land Values 2026 and 2022 Census of Agriculture
State rules last checked 2026-10-10. This is general information, not legal or tax advice. Rules vary by state, so talk to a local attorney or CPA about your situation.