Falling behind on property taxes usually happens quietly. A job loss, a medical bill, an inherited house nobody budgeted for. If you’re thinking about whether to sell a house behind on property taxes in Indiana, it helps to know exactly how the process works in Lake County, and how much time you really have.
This is general information, not legal or tax advice. Call the Lake County Treasurer or Auditor with questions about your parcel, and talk to an Indiana attorney or tax professional about your situation.
How Indiana property taxes are billed
Indiana property taxes are paid to your county treasurer in two installments a year. They’re normally due May 10 and November 10. When a due date falls on a weekend, it moves to the next business day, which is why the state’s Department of Local Government Finance listed May 11, 2026 and November 10, 2026 for 2026. Your tax statement shows the exact dates and amounts.
The Lake County Treasurer has offices in Crown Point (2293 N. Main St.), Gary (400 Broadway) and Hammond (232 Russell St.). You can look up a parcel’s balance with the county’s online tax search.
What paying late costs
Indiana’s penalties add up fast (IC 6-1.1-37-10):
- 5% of the unpaid tax if you pay within 30 days of the due date and don’t already owe back taxes on that parcel.
- 10% of the unpaid tax otherwise.
- Another 10% of any taxes still unpaid after each installment date in the following years.
Once a parcel goes on the tax sale list, more charges are added on top.
How a Lake County house ends up in the tax sale
According to the Lake County Treasurer, any parcel with taxes or special assessments still due from the prior year’s spring installment is eligible for the Treasurer’s tax sale. When the list is certified, the county adds a tax sale charge, sends each owner a certified letter, and publishes names and addresses in two local newspapers.
Lake County runs its tax sale entirely online. For the 2026 sale, which began September 4, 2026, owners who wanted their parcel removed had to get the full amount to the Treasurer’s office by the stated deadline, in cash or certified funds. Postmarks didn’t count.
Properties that don’t sell are certified to the Lake County Board of Commissioners, which can offer them at a later Commissioners’ tax sale.
That’s the summary. For the full walk-through, read Lake County tax sale: what homeowners need to know.
Redemption and tax deeds
A tax sale doesn’t take your house that day. The buyer gets a certificate, and you keep ownership during a redemption period (IC 6-1.1-25-4):
| Type of sale | Redemption period |
|---|---|
| Treasurer’s tax sale | One year after the sale |
| Commissioners’ certificate sale | 120 days after the certificate is sold |
| Vacant or abandoned property sale | No right to redeem after the sale |
For certificates sold in Lake County’s 2026 sale, the county lists the redemption deadline as September 8, 2027. Redeeming costs more than the original tax bill. The Lake County Auditor’s office calculates the exact amount, at (219) 755-3155, and it must be paid in certified funds or cash.
If the redemption period runs out, the buyer can ask the court for a tax deed. A tax deed transfers the house to the buyer, generally free and clear of liens. At that point, the house is gone.
The vacant or abandoned sale applies only after a court or hearing authority has found the property vacant or abandoned (IC 6-1.1-24-1.5). If your house sits empty, read our vacant house page.
Watch your homestead deduction
The homestead deduction can make a big difference in your tax bill. It also qualifies your home for Indiana’s 1% property tax cap. Other residential property is capped at 2% (DLGF fact sheet).
Two things to check:
- If you live in the house, make sure the deduction is actually on your bill. If it isn’t, ask the Lake County Auditor how to file.
- If you’ve moved out, the house no longer qualifies. Indiana law requires you to notify the county auditor within 60 days of the change. If you don’t, you can owe the taxes the deduction saved you, plus a 10% civil penalty (IC 6-1.1-12-37).
The same goes for an inherited house. A change in who owns or lives in a home can end the deduction or require a new filing.
Your options, including selling a house behind on taxes
Pay in full before the list is certified
If you can catch up before your parcel is certified for the tax sale, you avoid the extra charges and the risk. Some owners manage it with help from family.
Ask the Treasurer about partial payments
Indiana lets counties adopt monthly payment plans. If a county hasn’t, its treasurer must have a plan to accept partial payments (IC 6-1.1-22-9.7). Once the tax sale list is certified, though, partial payments alone don’t take a house off the sale; full payment or a signed payment arrangement with the Treasurer does. Ask the Lake County Treasurer at (219) 755-3760 what’s available for your parcel, and get the answer in writing if you can.
List with an agent
If the house is in good shape and the tax sale or redemption deadline is far enough off, listing may net you more. The delinquent taxes get paid at closing either way.
Sell for cash, with the taxes paid at closing
You don’t need to come up with the back taxes first. When you sell, the title company pays the delinquent taxes, penalties or redemption amount from the sale proceeds at closing, along with any mortgage. You get what’s left.
A direct sale to us can make sense when the house needs work, when you’re up against a tax sale or redemption deadline, or when you can’t keep up with the bills on a house you no longer want. We buy as-is in Gary and across Lake County. Our offer is in writing, below full retail, and you can compare it with other options. To get a rough sense of value first, read what your Gary house is worth as-is.
Timing matters here. You pick the closing date, and cash sales often close in weeks, not months, because there’s no lender to wait on. But tax sale and redemption deadlines don’t move, so the earlier you reach out, the more options you keep.
If you’re also behind on your mortgage, see our page on facing foreclosure.
