Money left over from a tax sale
When a county sells a property for unpaid taxes and the winning bid is more than was owed, the difference belongs to the former owner. The U.S. Supreme Court made that clear in 2023. Every state sets its own deadline to claim it.
How tax sale surplus works
Each state’s tax code sets the rules. These are the questions that decide every claim, with real examples where states differ.
- Who holds it
- Depending on the state, the court clerk, the county treasurer or tax collector, or the county officer who ran the sale.
- The deadline
- Every state sets its own, and some are short. In Michigan a notice of claim is due by July 1 after the foreclosure. In California a claim is due within one year after the tax deed is recorded.
- After the deadline
- In some states unclaimed money goes to the county for good. In others, such as Florida and Georgia, it moves to the state, where the owner can still claim it.
- How it’s claimed
- A claim form filed with the county, or a petition or motion in court, with proof of who you are and that you owned the property.
- Who can claim
- The former owner, or the heirs if the owner has died, after any recorded lienholders who come first.
- Fees
- Some states cap what anyone may charge, and some allow no fee from anyone who is not an attorney. Others set no limit, so the written agreement is what protects you.
- The law behind it
- In Tyler v. Hennepin County (2023), the U.S. Supreme Court ruled that a county cannot keep more than the taxes owed.
There is a deadline, and your state sets it
The clock usually starts at the sale or when the deed is recorded, not on the day you hear about the money. Most claims follow this path.
Read the guide to tax sale surplusThe sale
The property sells at auction. Anything above the debt and the costs is set aside for the former owner.
The notice
Many states require the clerk, county or trustee to send notice, often to an old address.
The claimDeadline
You, or an attorney for you, file a claim with proof of who you are and that you owned the property.
The review
The county, trustee or court checks the claim. In some states a judge decides it at a hearing.
The release
Once the claim is approved, the money is paid out, after any liens that come first.
Questions people ask
How do I find out if a tax sale left surplus?
The office that ran the sale can tell you. Depending on the state, that is the court clerk, the county treasurer or the tax collector. Have the property address or the case number ready. We check this for free if you give us the address.
What happens if nobody claims it in time?
It depends on the state. In some, the money goes to the county for good. In others, it moves to the state’s unclaimed property office, where the owner can still claim it later. Either way, the clock usually runs from the sale or the recording of the deed, not from the day you hear about the money.
Can I file the claim myself?
Yes. Owners can file their own claims, and some counties publish free forms. In some states a judge decides the claim at a hearing, and some states allow only you or a licensed attorney to file it.
Someone offered to buy my claim. Is that allowed?
It depends on the state. Michigan forbids selling the right to tax sale surplus. California allows it only with strict written disclosures, including that you could file with the county yourself for free. Ask for the full amount set aside before you consider any offer.
Find out if a tax sale left money for you
Give us the property address. We check the records for free and tell you what we find.
Or call (817) 308-1202