Tax Foreclosure in Mississippi: What Homeowners Need to Know
A guide from AuctionBlock.org
If you own a home in Mississippi and have fallen behind on your property taxes, you need to understand how the state's tax sale system works. Mississippi sells tax liens on delinquent properties to investors, and if you do not redeem your property within the redemption period, the tax sale purchaser can take title to your home. This guide explains the process, your redemption rights, real exemption programs, and where to get help.
How Property Tax Collection Works in Mississippi
Property taxes in Mississippi are collected by the county tax collector. Tax bills are mailed in the fall, and taxes are due by February 1 of the following year. If taxes remain unpaid after February 1, they become delinquent and penalties are added.
The laws governing tax sales and redemption in Mississippi are found primarily in Mississippi Code Annotated Title 27, Chapters 41 through 49.
The Tax Sale Process
Mississippi counties hold annual tax sales, typically in August or September of the year following delinquency. The process works as follows:
1. Delinquency and Notice After February 1, unpaid taxes become delinquent. The county tax collector adds a penalty and interest. Before the tax sale, the tax collector publishes a list of delinquent properties in a local newspaper for at least three consecutive weeks (Mississippi Code Section 27-41-55).
2. The Tax Sale At the annual tax sale, the county sells tax liens on delinquent properties. Under Mississippi Code Section 27-41-1, the sale is held at the county courthouse. The tax collector offers the land for the amount of taxes, damages (penalties), interest, and costs. If no third party bids, the land is "struck off" to the state.
3. What the Buyer Receives The successful bidder at a Mississippi tax sale receives a tax sale certificate. This is a lien on the property, not a deed. The homeowner retains possession and use of the property during the redemption period.
The Redemption Period
Mississippi provides a two-year redemption period for properties sold at tax sale.
Standard Redemption Period: Two Years Under Mississippi Code Section 27-45-3, the property owner has two years from the date of the tax sale to redeem the property. To redeem, the owner must pay the chancery clerk:
- The amount paid by the tax sale purchaser
- Damages (penalties) of 5% of that amount
- Interest at 1.5% per month (18% per year) from the date of the sale
- Any additional taxes paid by the purchaser during the redemption period
After the Redemption Period If the property is not redeemed within two years, the tax sale purchaser may obtain a tax deed by filing a petition with the chancery court. Under Mississippi Code Section 27-45-23, the purchaser must provide notice to the property owner. The chancery court then issues a deed transferring title to the purchaser.
Matured Tax Sales (State-Held Land) If no third party purchased the tax lien and the state holds the certificate, the land may eventually be listed for sale by the state through the Secretary of State's office. The original owner may still have rights to redeem in some circumstances. These properties are sometimes referred to as "matured tax sales."
Exemption and Assistance Programs
Mississippi has several property tax exemption programs that may help you prevent delinquency.
Homestead Exemption Under Mississippi Code Section 27-33-3, homeowners who occupy their property as a primary residence may qualify for a homestead exemption. The exemption applies to the first $7,500 of assessed value (which equates to the first $75,000 of true value at the standard 10% assessment ratio). This exemption is applied automatically to qualifying homesteads, but you must file an application with your county tax assessor.
Additional Homestead Exemption for Seniors (Age 65+) Under Mississippi Code Section 27-33-67, homeowners age 65 and older may qualify for an additional exemption that exempts the first $75,000 of true value from all ad valorem taxes. Combined with the regular homestead exemption, this can eliminate property taxes entirely for many senior homeowners.
Disabled Veteran Exemption Under Mississippi Code Section 27-33-67, veterans with a 100% service-connected disability rated by the U.S. Department of Veterans Affairs are exempt from all property taxes on their homestead, regardless of the value of the home. Apply through your county tax assessor.
Disability Exemption Totally disabled homeowners (not limited to veterans) may also qualify for the enhanced homestead exemption under Mississippi Code Section 27-33-67.
Legal Aid and Assistance Organizations
If you are facing a tax sale in Mississippi, the following organizations can provide assistance:
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Mississippi Center for Legal Services -- Provides free civil legal assistance to low-income residents in central and south Mississippi. Phone: 1-800-498-1804. Website: mscenterforlegalservices.org
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North Mississippi Rural Legal Services -- Serves low-income residents in northern Mississippi. Phone: 1-800-898-8731. Website: nmrls.com
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Mississippi Volunteer Lawyers Project -- Connects low-income residents with pro bono attorneys. Website: mvlp.net
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Mississippi Home Corporation -- The state's housing finance agency. Administers homeowner assistance programs. Website: mshomecorp.com
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University of Mississippi School of Law Clinical Programs -- Provides free legal services through law school clinics. Website: law.olemiss.edu
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HUD-Approved Housing Counseling Agencies -- Find approved counselors at hud.gov/findacounselor.
Emergency Action Steps
If you are behind on property taxes in Mississippi, take these steps:
1. Contact your county tax collector. Find out the exact amount owed, including penalties and interest. Ask about payment options.
2. File for homestead exemption if you have not already. The homestead exemption can significantly reduce your annual tax bill. If you are 65 or older, disabled, or a disabled veteran, you may qualify for an enhanced exemption that could eliminate your property taxes.
3. Contact Mississippi Center for Legal Services or North Mississippi Rural Legal Services. These organizations provide free legal help and can advise you on your rights during the tax sale and redemption process.
4. If your property has been sold at a tax sale, know your two-year deadline. Calculate the total redemption amount and work toward payment. Do not wait until the deadline.
5. Contact a HUD-approved housing counselor. A counselor can help you develop a financial plan and identify resources.
6. Visit auctionblock.org/get-help. AuctionBlock.org is a mission-driven company focused on foreclosure prevention. We can help you understand your options and connect you with resources in your county.
Key Statutory References
- Mississippi Code Section 27-41-1 -- Tax sale procedures
- Mississippi Code Section 27-41-55 -- Notice requirements
- Mississippi Code Section 27-45-3 -- Two-year right of redemption
- Mississippi Code Section 27-45-23 -- Tax deed after redemption period
- Mississippi Code Section 27-33-3 -- Homestead exemption
- Mississippi Code Section 27-33-67 -- Enhanced exemption for seniors, disabled, veterans
Legal Disclaimer
This guide is provided by AuctionBlock.org for educational purposes only. It does not constitute legal advice. Tax laws and local procedures vary by county and change over time. You should consult with a licensed attorney in Mississippi for advice specific to your situation. AuctionBlock.org is a mission-driven company organization. We are not a law firm and do not provide legal representation. AuctionBlock.org is a newly established organization and has not yet served any families.
For help with tax foreclosure prevention, visit auctionblock.org/get-help.