Falling behind on property taxes happens to more people than you’d think, and usually not because they’re careless. A job loss, a medical problem, a divorce, a death in the family or an escrow account that came up short can all leave a homeowner with a tax bill they can’t pay. If that’s you, the most important thing is not to ignore it. You have more options early on than you will later.
Here’s a plain-English look at what happens when property taxes go unpaid in Washington and Idaho, ways to lower or manage the bill, and what to do if keeping the house just isn’t realistic.
What happens when property taxes go unpaid
In both states, property taxes are collected by the county treasurer: the Spokane County Treasurer, the Kootenai County Treasurer, or the Benton or Franklin County Treasurer in the Tri-Cities. When a payment is missed:
- Interest and penalties start adding up. The balance grows each month you’re behind.
- The county sends notices. Keep every letter and read it closely. They tell you what you owe and the important dates.
- Eventually the county can start a tax foreclosure. In both Washington and Idaho, this generally doesn’t happen right away. The process typically begins after taxes have gone unpaid for a few years. But once it starts, the timeline moves faster, and the county can ultimately sell or take the property.
The rules and dates can change, so call your county treasurer’s office to find out exactly where your account stands and what deadlines apply to you. They deal with this every day and are usually willing to explain your options.
Ways to catch up or lower the bill
Ask about payment options
Ask the treasurer’s office whether you can make partial payments toward the back taxes. Paying something, even if it isn’t everything, can reduce how much interest builds up.
Check for exemptions and relief programs
Both states have programs that can lower property taxes for people who qualify. These are usually handled by your county assessor’s office:
- Washington has exemption and deferral programs for qualifying seniors and people with disabilities, based on age or disability and income.
- Idaho has a homeowner’s exemption for primary residences, plus a property tax reduction program for qualifying seniors, people with disabilities, some veterans and others with limited income.
Income limits and deadlines apply and change from year to year. Call your county assessor and ask what you might qualify for.
Check your assessment
If your bill seems too high, look at your property record on the county assessor’s website.
- Look for errors in square footage, bedrooms, bathrooms, lot size or condition.
- Compare with similar homes nearby. Assessment records for your neighbors are public.
- Point out problems. If an appraiser from the assessor’s office visits, show them repairs the house needs. Those can affect the value.
- Appeal if needed. Each county has a board of equalization that hears appeals, with deadlines each year. The assessor’s office can tell you the dates.
Borrow to pay the taxes
Some homeowners use a personal loan, a home equity loan or help from family. There are also lenders that specialize in property tax loans, but be careful: these can carry high interest and fees. Read every term before you sign.
Talk to your mortgage lender
If you have a mortgage, your lender may pay the taxes to protect its interest and then add the amount to your loan or escrow, which raises your payment. Call them early so you’re not surprised.
When selling is the better answer
Sometimes the numbers don’t work. The back taxes, plus penalties, plus the house’s other costs and repairs, are more than you can catch up on. If you have equity in the home, selling before the county takes action lets you pay off the taxes and keep what’s left, instead of risking losing it.
Back taxes are paid off at closing, along with any mortgage, out of the sale. A traditional listing can work if you have enough time before the county’s deadlines. If time is short, a direct sale can help.
How Backyard Home Buyers can help
- You’ll usually have a fair cash offer within 24 hours.
- We can close in as little as 7 days, which can matter when a county deadline is coming.
- We buy as-is, so there’s no need to spend money on repairs first.
- No fees or commissions, and we pay the closing costs.
- Need some time to move after closing? Rent-backs are available.
We’re a local, family-owned company. Both owners were born and raised in the Inland Northwest, and since 2019 we’ve done over 500 deals. We’ll talk you through your options honestly, even if the best answer turns out to be a payment plan rather than a sale.
If you’re also behind on your mortgage, our guide to facing foreclosure covers that side.
We buy homes in Spokane County, Kootenai County and North Idaho and the Tri-Cities. See how it works or call (509) 461-9079. The call is confidential and there’s no obligation.