Tax Foreclosure in Utah: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Utah uses a tax deed system. Counties sell tax-delinquent properties at a public auction after a multi-year waiting period.
How It Works
Property taxes in Utah are collected by the county treasurer. Under Utah Code § 59-2-1301 et seq., when taxes become delinquent (after November 30), a penalty is applied and interest accrues. After taxes remain unpaid for 5 years, the county can sell the property at an annual May tax sale under Utah Code § 59-2-1351.1 et seq.
The county must provide notice to the property owner by certified mail and publication before the sale.
Redemption Period
Utah's system provides a built-in waiting period: the county cannot sell the property until taxes have been delinquent for 5 years. During that time, the owner can pay all delinquent taxes, penalties, and interest to stop the process.
Under Utah Code § 59-2-1381, after the tax sale, the former owner may petition the court within certain limited circumstances to set aside the sale. However, there is generally no guaranteed post-sale redemption period. This makes paying before the sale critical.
Key Programs and Exemptions
Circuit Breaker Tax Credit: Under Utah Code § 59-2-1202 et seq., qualifying homeowners 66+ or disabled (receiving SSI, SSDI, etc.) with income below the statutory threshold may receive a property tax credit that reduces or eliminates their property tax. Apply through your county auditor by September 1.
Veterans Exemption: Under Utah Code § 59-2-1104, veterans with a qualifying disability may receive a property tax exemption on their primary residence. The exemption amount is based on the veteran's disability rating. Apply through your county assessor.
Blind Exemption: Under Utah Code § 59-2-1106, legally blind homeowners may qualify for a property tax exemption on their primary residence.
Where to Get Help
- Utah Legal Services: Provides free legal help to low-income Utahns. Call (801) 328-8891 or 1-800-662-4245, or visit utahlegalservices.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
Utah's 5-year waiting period gives significant time, but taxes, penalties, and interest compound. Contact your county treasurer as soon as you fall behind.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your county treasurer or a licensed attorney. AuctionBlock.org is a mission-driven company.