State Summary

Tax Collection Method: Deeds
Primary Bidding Type: Premium
Redemption Period: None
Redemption Interest Rate/Flat Penalty: Not applicable

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of North Carolina. Please read this information carefully. There are tax collection laws that pertain to all counties in North Carolina, but be aware that there are subtle differences between the counties as well. When the word "typical" is used in the FAQs below, it indicates that most counties use this procedure/follow this convention, but not all counties.

Is North Carolina a tax lien or a tax deed state?
North Carolina is a tax deed state.

What is the name of the county office that typically collects property taxes in North Carolina?
Typically, the term Tax Collector is used. Many North Carolina counties have a Tax Administration Office that combines tax collection, tax assessing, and tax mapping.

When are property taxes due in the state of North Carolina?
Property taxes are due September 1.

When do property taxes become delinquent in the state of North Carolina?
Property tax payments are considered delinquent if not paid by the following January 6. A 2% penalty is immediately assessed and added to the delinquent tax bill. Starting February 1, 8% simple interest (0.75% per month) is charged on the total amount owed on the delinquent tax bill, including the 2% penalty.

What is the name of the official or office whom typically conducts tax deed sales in North Carolina?
The tax collector advertises the tax deed auction and also runs the auction in some counties. In some counties, the tax deed auction is run by third-party law offices or by the Sheriff's office.

When does the typical North Carolina county hold their tax foreclosure sale?
Counties in North Carolina hold tax foreclosure sales at various times throughout the year.

What are the registration requirements for the typical North Carolina tax foreclosure sale?
Typically, bidders register on the day of the auction.

What is the bidding type used at a typical North Carolina tax deed sale?
The typical county holds public outcry premium bidding auctions.

What are the general terms of payment for the typical tax deed purchased at an North Carolina tax deed sale?
A deposit (in cash or certified funds) of up to 20% of the sale price is due immediately after the sale. The remaining balance is due upon the delivery of the tax deed. North Carolina employs "Upset Bidding", which means that other investors (or the former property owner) have ten days after the auction to upset the bid. An upset bid must exceed the original bid by at least 5%, or $750, whichever is greater. All monies are returned to the investor whose bid has been upset. Typically, the County Clerk of the Court handles the Upset Bid process.

Are tax deeds offered "over-the-counter" in North Carolina?
Upset bidding can be considered an "over-the-counter" opportunity. Some counties also make "county-held" properties available to investors.

What is the name of the local official whom typically determines the values of properties on a annual basis?
Assessors, or the Assessing Division.

For more information on delinquent real estate taxes and tax deeds in the state of North Carolina, refer to the following sections in Chapter 105 of the North Carolina General Statutes.

105-374: Foreclosure of tax lien by action in nature of action to foreclose a mortgage
105-375: In rem method of foreclosure
105-376: Taxing unit as purchaser at foreclosure sale; payment of purchase price; resale of property acquired by taxing unit

North Carolina County Reference