It’s tax sale season. Here’s how you can avoid it.

In Maryland, just one outstanding property tax bill, lien or citation can lead to financial ruin in the yearly tax sale, where debts are auctioned to the highest bidder.

Failure to repay the lienholder with fees and interest can result in property and equity loss.

Baltimore tends to have the most liens sold each year as well as the highest average lien amounts. Tax sale is burdensome in other counties too, including in Montgomery and Prince George’s, where hundreds of owner-occupied households went to tax sale in 2024 and had their liens sold, according to state-collected data.

But tax sale nightmares are avoidable. Here are some tips for new and established homeowners alike to ensure your property stays off the auction list.

Check your balances. Then check them again.

Many homeowners, especially those who have paid off their mortgages, often blame their stumbles with tax sale on not knowing what they owed or forgetting to stay current on their payments.

It may sound trite, but set a reminder every month to check your balance and pay your bills — not just for property taxes, but for water bills and other local fees, too. Mortgage companies that pay your taxes for you may not be receiving late notices, so be sure to stay on top of those, as well.

You also might want to mark your calendar for July 1, when property tax bills come due. In Maryland, homeowners generally have until Oct 1. to start paying down the bill before they’re considered delinquent and begin accruing interest. Some jurisdictions will place any property with a delinquent bill on the tax sale list, while others give homeowners more time before they’re at risk.

There’s also a threshold for tax sale eligibility.

In Anne Arundel, Howard and Montgomery counties, for example, homes must be delinquent at least $250 to be eligible for tax sale. If you pay off a portion of the bill that’s below the threshold, your property is safe from tax sale, though you will still owe the remainder.

Homeowners, including those who don’t live at the properties they own, also need to check the mail, religiously, and read city-stamped letters carefully. If you see a notice taped to your door, take that message seriously, too.

Verify your home’s occupancy status

In Baltimore, homes classified as owner-occupied stand a better chance at being removed from the tax sale list by Mayor Brandon Scott’s administration than those that aren’t. To check your house’s occupancy status, type in your address on the Maryland Department of Assessments and Taxation’s website and look at the top right corner of the online deed.

Rental homes will likely be classified as non-owner occupied. This means they won’t be excluded from tax sale in Baltimore, and the threshold for winding up on the tax sale list is $750 (instead of $1,000 for owner-occupied houses).

Review the annual tax sale list and relevant dates

The tax sale auctions usually happen between May and December. Be sure to check when your jurisdiction’s is scheduled for so you can plan on paying down at least a portion of your bill to get excluded from the auction.

Every year between March and August, tax liens are posted in The Baltimore Sun and The Daily Record, usually four weeks prior to the auction dates. Check to see the date of your jurisdiction’s auction and do a quick scan in the newspaper for your home address. If you pay off the debt before the auction, or before a foreclosure, you will stop the proceedings.

Seek out financial assistance and counsel

If you’re caught up in tax sale, or even if you find yourself unable to afford some of your bills, don’t panic.

A limited number of Baltimore homeowners can apply to be removed from the annual tax sale by applying for deferral between February and April. It’s a first-come, first-served review (and it will not wipe past balances from prior years).

The city will also begin offering payment plan options for some homeowners beginning this year and through 2027. To pre-enroll, visit this website.

Several counties, including Baltimore City, have designated funds for homeowners seeking “bid balances.” In Montgomery County, more than $6.5 million is set aside for this purpose, while nearly $8.5 million is available in Prince George’s for bid balance relief.

Free legal counsel is available each year through the Maryland Pro Bono Resource Center, which holds four tax sale clinics each year. Additional assistance — including with placing new names on deeds, which can make properties eligible for more aid — is accessible through the Maryland Volunteer Lawyers Service.

Tax credits are also available for homeowners, including the Maryland Homeowners’ Property Tax Credit, which requires a yearly application for income-limited residents, and the Maryland Homestead Property Tax Credit, which asks for a one-time application and is open to all owner-occupied properties, regardless of income.

The state has a tax sale ombudsman who can help people navigate potential problems and connect with relevant resources. You can schedule an appointment to see someone in person or reach the office by phone or email.