Falling behind on property taxes happens more often than people think: a job loss, a medical bill, a parent who stopped opening mail. In Massachusetts, unpaid taxes don’t just sit there. They can turn into a “tax taking,” and if nothing changes, the town can eventually take the house. Here’s how the process works and what you can do at each step.
Step 1: Unpaid taxes and a demand
When a tax bill goes unpaid, the city or town’s collector sends a demand. Interest and charges start adding up from there. At this stage, paying the bill (or setting up a plan with the treasurer’s office) usually ends the problem.
Step 2: The tax taking (tax title)
If the taxes still aren’t paid, the town can record an “instrument of taking” at the Registry of Deeds. This is called a tax taking, and the account is then in “tax title.” You still own and live in the house, but the town now holds a lien and you have a “right of redemption,” meaning the right to pay off what’s owed and clear it.
Interest on a tax title account is high. Under Massachusetts’ 2024 tax title reform, tax titles entered on or after November 1, 2024 accrue interest at 8% a year. Older tax titles still accrue at 16%. Legal and recording costs are added on top.
Step 3: Land Court foreclosure
If the account isn’t redeemed, the town can file a case in the Massachusetts Land Court to foreclose your right of redemption. If the court enters a judgment, you can lose title to the house. Land Court notices and newspaper publications are often the point where owners realize how serious it has become.
The 2024 reform also changed what happens to the equity in a foreclosed property. After the U.S. Supreme Court’s 2023 decision in Tyler v. Hennepin County, Massachusetts updated its law so former owners can recover equity beyond what was owed. But by that stage the interest, costs and legal fees have grown, the process is slow, and you no longer control the sale or the price.
Your options before it gets to that point
- A payment agreement. The 2024 law lets towns offer agreements of up to 10 years, with as little as 10% down, and they can waive some or all of the interest if you stick to the schedule. Each town sets its own terms, so call the treasurer’s office.
- Exemptions and abatements. Seniors, veterans, surviving spouses and some others may qualify for property tax exemptions. Ask your town’s assessor what’s available.
- Refinancing or borrowing against the house. If you have equity and steady income, this can pay off the tax title in one step.
- Selling the house. When you sell, the back taxes, interest and costs are paid out of the sale at closing, just like a mortgage. You keep everything left over.
Selling a house that’s in tax title
You can sell a house with a tax taking on it. The closing attorney gets a payoff figure from the town, the town is paid from the proceeds, and the taking is discharged. A traditional listing works if the house is in good shape and you have time. If the house needs work, is inherited, or the Land Court case is already moving, a direct cash sale can be faster and more predictable.
Joe Homebuyer New England buys houses as-is across Massachusetts and southern New Hampshire, including properties with back taxes, tax takings and open Land Court cases. We’ll show you the numbers so you can compare selling to a payment plan or listing. If you’re also behind on the mortgage, see our foreclosure help page.
Quick answers
Can the town take my house for unpaid taxes in Massachusetts?
Yes, but it takes time. The town first records a tax taking, then has to go through the Land Court to foreclose your right of redemption. You can usually stop the process by paying what’s owed, entering a payment agreement, or selling before a final judgment.
What interest rate applies to a tax title?
8% a year for tax titles entered on or after November 1, 2024, and 16% for older ones, plus costs.
Will I get anything if I sell?
Yes. The taxes and costs come out of the sale price at closing, and the rest goes to you (after any mortgage).
Want to know your options? Tell us about your house or call Joe Homebuyer New England at (617) 857-0000. There’s no cost or obligation.
This article is general information, not legal or tax advice. Rules and local procedures change, so talk with a Massachusetts attorney or your town’s treasurer about your specific situation.