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Behind on Property Taxes in Huntsville and Madison County
Unpaid property taxes put a lien on your home, and in Alabama the county can eventually sell a tax lien or tax deed on it. Here is the calendar, how Madison County's sale works, how to get it back, and how to lower or pay the bill, including by selling.
Selling to clear back taxes?
We can tell you what the home would sell for and what you would net after the taxes, mortgage and costs, so you can compare that with paying the redemption amount and staying.
Book a confidential consultation Call or text (256) 808-6861
Please note: If Wyze Realty or anyone connected to us would ever be the buyer of your home, we will tell you in writing before you sign anything and show you that offer next to what listing on the open market would likely net, so you can choose.
This guide is general information, not legal or tax advice
Wyze Realty is a real estate brokerage. We are not a law firm, CPA, lender or housing counselor, and we cannot tell you what to do about your specific legal or tax situation. Laws, deadlines and programs change, and the right answer depends on your documents and facts. Talk to the tax collector for exact amounts, and to an Alabama attorney if a certificate holder has filed a foreclosure action.
Nothing on this page guarantees a result, a price, a timeline or that a lender, court, agency or buyer will agree to anything. We have cited the sources we used so you can check them; statute text linked here may not be the current version.
The Alabama property tax calendar
| When | What happens |
|---|---|
| October 1 | Property taxes are due. |
| After December 31 | Unpaid taxes become delinquent. |
| February | Delinquent taxes go to the probate court process. |
| April | Delinquent properties are advertised. |
| May | The tax sale is held. |
Source: Alabama Department of Revenue. Counties set their own procedures within state law.
How Madison County's tax sale works
- Madison County holds its sale online through GovEase, generally the first week of May.
- Buyers receive a tax lien certificate, not the property itself.
- Bidders compete by bidding down the interest rate, up to a maximum of 12% simple interest, prorated monthly. Interest runs until you redeem or the certificate holder starts a foreclosure action.
- A certificate becomes void if the holder does not foreclose within 10 years (Act 2018-577).
- Questions: Madison County Tax Collector, (256) 532-3370.
Other Alabama counties may use the older tax-deed system, where the buyer receives a deed and the owner generally has three years to redeem (Ala. Code 40-10-120). Limestone and Morgan County owners should check with their own tax collector.
How to get current
- Get the exact redemption or payoff amount. Call the tax collector. It includes the taxes, interest and costs.
- Pay it, or set a plan. Ask what payment options exist before the sale or before the certificate holder files.
- Check your exemptions. Many owners overpay because they never claimed homestead. See below.
- If you are selling anyway, back taxes are paid at closing. The closing attorney or title company gets the payoff and pays it from your proceeds, along with your mortgage.
Homestead exemptions that can lower your bill
A homestead is a single-family home you own and live in, with up to 160 acres, occupied as of the first day of the tax year. In Madison County, a homestead exemption also places the home in the lower 10% assessment class (rentals and commercial are assessed at 20%). Apply by December 31 with the Madison County Tax Assessor, 1918 N Memorial Pkwy, (256) 532-3350.
| Exemption | Who qualifies (summary) | Effect (summary) |
|---|---|---|
| H-1 | Owner-occupied homestead | $4,000 off state and $2,000 off county assessed value |
| H-2 | Age 65+ with income under $12,000, or retired due to permanent and total disability | Exempt from state taxes plus $5,000 off the county portion |
| H-3 | Age 65+ with net taxable income of $12,000 or less, or totally disabled | Exempt from all ad valorem taxes |
| H-4 | Age 65+ with income above $12,000 | State portion exempt plus the regular county exemption |
Summary of the Alabama Department of Revenue homestead page. Local rules and amounts can differ; confirm with the assessor.
Questions owners ask
Can I lose my house for unpaid property taxes in Alabama?
Yes, eventually. Unpaid taxes become a lien, and the county can sell a tax lien certificate or tax deed. In Madison County the buyer gets a lien certificate, earns interest and can later bring a foreclosure action if the taxes are not redeemed.
Can I sell my house if I owe back property taxes?
Yes. The taxes, interest and costs are paid from your proceeds at closing, the same way the mortgage is paid off.
What interest rate applies on a Madison County tax lien certificate?
Bidders bid down from a maximum of 12% simple interest, prorated monthly, according to the Madison County Tax Collector.
Did I miss my homestead exemption?
Check your tax bill or call the assessor. In Madison County you apply by December 31 for a home you occupied on October 1.
Talk it through, confidentially
I have been in Alabama real estate for about ten years. Whatever is going on, the first conversation is free, private and comes with no obligation to list. If what you need is an attorney, a counselor or a CPA rather than a real estate agent, we will tell you that.
Book a confidential consultation Call or text (256) 808-6861
Other selling situations
Behind on payments or facing foreclosure
How Alabama foreclosure works, your deadlines and redemption rights, and every way out, including selling before the sale date.
Owe more than the house is worth (short sale)
How short sales work, the paperwork, deficiency waivers, and the 2026 tax change on forgiven mortgage debt.
Selling a house in a divorce
Equitable division in Alabama, buyouts vs. selling, getting off the mortgage, and the capital gains rules for divorcing couples.
Inherited a house or selling in probate
Probate in Madison and Limestone County, when a court must approve the sale, heirs property, step-up in basis and what to do first.
Reverse mortgage after a parent dies
What heirs must do and when, the 95% rule if the loan is underwater, and how to sell an HECM home.
Selling with an IRS tax lien
How federal tax liens attach to your home, and how a certificate of discharge lets you sell even when the IRS will not be paid in full.
Judgment, contractor, HOA or child support liens
The other liens that show up at closing in Alabama, how long they last, and how they are paid or released when you sell.
Selling land or acreage
Perc tests and septic permits, timber, surveys, current-use tax and rollback, and how land gets priced around Huntsville.
Sell fast, as-is or for cash
Listing as-is vs. cash buyers, iBuyers and wholesalers: how to compare offers, Alabama disclosure rules and the 2023 wholesaling law.
Selling during bankruptcy
How Chapter 7 and Chapter 13 affect your home, the automatic stay, and why a sale needs court or trustee approval.
Selling a rental with tenants in it
Sell with the lease in place or wait, tenant rights during showings, deposits, cash for keys, and 1031 exchanges.
Sources (viewed October 2026): Alabama Department of Revenue, real property FAQ; Madison County Tax Collector, tax sale; Alabama Department of Revenue, homestead exemptions; Madison County property tax facts; Nelson Mullins, Alabama tax sale redemptions.
Disclaimer: This page is general information about Alabama and federal rules as we understood them in October 2026. It is not legal, tax, financial or credit advice, and it may not reflect the current law or your situation. No result, price, timeline or approval is guaranteed. Consult an Alabama attorney, a CPA or a HUD-approved housing counselor about your situation. Wyze Realty, (256) 808-6861.