How Tax Liens & Tax Sales Work in Iowa

1. Tax Due Dates & Delinquency Penalties

• Property taxes in Iowa are due twice a year: March 1 and September 1, with a one-month grace period. After April 1 and October 1, late payments accrue 1.5% interest per month, plus penalties iowalegalaid.org.

2. Tax Sale Announcement & Auction

• If taxes remain unpaid by May 1 (for spring) or November 15 (for fall), the county can add the parcel to the annual tax sale, held the third Monday in June, to recover the debt iowataxandtags.org+6iowalegalaid.org+6linncountyiowa.gov+6.
• Interested investors can purchase the lien at this auction, paying the owed taxes plus interest and receiving a tax sale certificate legis.iowa.gov+13iowataxandtags.org+13investopedia.com+13.

3. Redemption Period: Time to Pay Before Losing Ownership

• Once the certificate is sold, homeowners have up to 21 months (1 year and 9 months) to redeem their property by paying:
  1. The full amount paid at the auction
  2. A 2% monthly interest rate on that amount
  3. Taxes due for any subsequent years investopedia.com+3nolo.com+3linncountyiowa.gov+3en.wikipedia.orgmillscountyiowa.gov+5iowalegalaid.org+5iowataxandtags.org+5iowataxandtags.org+5clintoncounty-ia.gov+5nolo.com+5.
• After 21 months, the certificate holder must serve notice giving the homeowner an additional 90 days to redeem iowatreasurers.org+14nolo.com+14danilsonlaw.com+14.
• If the homeowner still fails to pay, the certificate holder is entitled to receive a tax deed, with ownership passing to them (or the county, if the holder fails to act) .

4. Maximum Timeline Before Losing the Home

Calculating from the original tax due dates:

• March 1/September 1 → delinquency by April 1/October 1.
• June tax sale
  • 21 months redemption period
  • 90 days final notice
    This means the full process can take approximately 2 years from the first delinquency date, sometimes slightly less depending on specific county schedules.

Why Selling to a Cash Buyer Like DSM Swift Home Buyers Makes Sense

If you’re falling behind on taxes and facing a looming deadline, selling sooner could save your home—and your wallet.

✅ Avoid Compounding Interest & Fees

With interest stacking at 2% per month, unpaid taxes can quickly spiral. A cash sale stops that clock immediately.

✅ Keep Control & Prevent Loss

Once a tax deed is issued, you lose property rights with little recourse. Selling now means avoiding that irreversible step.

✅ Fast, As-Is Offers

DSM Swift Home Buyers offers fair cash deals and handles everything in-house—no repairs, no wait, and no closing costs.

✅ Peace of Mind

Facing tax issues can be stressful. DSM Swift Home Buyers provides clarity and support so you’re not left navigating complex redemption or auction rules.

Contact us today to get your offer!

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Bottom Line

In Iowa, you typically have around two years from the first missed property tax payment before risking foreclosure via tax sale and deed transfer. Selling to a reputable cash buyer like DSM Swift Home Buyers can save you from that pressure, protect your equity, and close the deal quickly with no additional costs or stress.

If you’re concerned about tax delinquency or want to explore a fast exit, contact DSM Swift Home Buyers—we’re here to help guide you every step of the way.