How North Carolina property tax delinquency works
North Carolina property taxes are due September 1. They can be paid at face value until January 5. Starting January 6, interest accrues at 2 percent for the first month, then 3/4 percent per month until paid (G.S. 105-360). The Gaston County Tax Collection Department notes that taxes become delinquent January 6 and that delinquent taxes are subject to collection remedies including levy, garnishment, attachment of rents and bank accounts, in rem foreclosure and mortgage-style foreclosure.
Taxes are a lien on the land itself, so they follow the property even if ownership changes through inheritance.
Find out what you owe
Look up the parcel on Gaston County GIS to confirm the parcel number and owner of record, then check the balance on the county's property tax inquiry site or call the tax collector. If several years are unpaid, ask for a payoff good through a specific date, since interest keeps accruing.
Your options
- Pay it. If you plan to keep the land, a payment plan with the tax office may be possible.
- Sell and pay at closing. The closing attorney pays the full tax payoff from the proceeds, and you receive the rest.
- Sell before foreclosure. Once the county starts a foreclosure, costs and attorney fees are added, and a foreclosure sale can cut off your equity. Selling earlier keeps more of it.
What the math looks like
A direct sale on land with back taxes looks like this on the settlement statement: sale price, minus the tax payoff with interest, minus any other liens, minus your share of closing costs (which Forma can pay), equals your proceeds. We show you that estimate in writing before you sign.
Inherited land with back taxes
Often the taxes went unpaid because the owner passed away and nobody was sure who was responsible. In that case, the closing attorney will also confirm the heirs and whether the estate needs to be involved. See selling inherited land in NC.