Selling land with back taxes in Indiana

How Indiana handles unpaid property taxes

Indiana sells tax lien certificates. An investor pays your overdue taxes and gets a lien with interest. You still own the land, but if the lien is not paid off, you can lose it through the process in the rule below. Paying off the lien, including from a sale, clears it.

The redemption rule in Indiana: After most tax sales, the owner can redeem for 1 year, or for 120 days if the buyer is a qualified purchasing agency. Land on the county vacant or abandoned list is sold by deed at auction, and the owner cannot redeem at any time after it. If the land did not sell and the county took the lien, the period is 120 days from then or from a later certificate sale. Redeeming costs 110% of the minimum bid within 6 months or 115% after, plus 5% a year on any overbid, later taxes and some costs. If a regular tax sale is not redeemed, the owner of record can claim surplus sale money from the county for three years. Surplus from a vacant or abandoned list sale goes to local taxing units under the statute, not to the owner.

Law: IC 6-1.1-24-1.5, 6-1.1-24-7, 6-1.1-25-2 and 6-1.1-25-4. 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.

Indiana land at a glance

• Average farm real estate value: $9,150 per acre (2026, USDA).
• Average property tax on farmland: about $24.83 per acre per year (2022 Census of Agriculture).
• Transfer tax: Indiana has no state deed or transfer tax. Recording fees apply, plus a $20 sales disclosure form fee filed with the county auditor.
• Seller disclosure: IC 32-21-5 applies only to sales of residential real estate containing not more than four dwelling units, so a vacant lot is outside it. A seller of classified forest or wildlands must disclose in writing that it is enrolled, plus any potential violations, tax liabilities and penalties.

These are statewide averages, not an appraisal. See selling land in Indiana 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.

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