Inherited a House With Back Taxes in Virginia? Here's What to Do

It's one of the most common situations we see in Hampton Roads. A parent or grandparent passes away, the house sits empty, and nobody realizes the property tax bills have stopped getting paid. A year or two later, the family gets a letter from the treasurer or a delinquent tax attorney. If that's where you are, this guide explains who's responsible for the back taxes in Virginia, how much time you may have, and what your options are. For urgent help, see our tax auction help page or our inherited property help page.

Who Pays Back Taxes on an Inherited House in Virginia?

In Virginia, unpaid real estate taxes are a lien on the property under Va. Code §58.1-3340. The lien stays with the house when ownership passes to heirs or beneficiaries. In practice:

• The house is responsible. Whoever owns it now has to deal with the lien to keep it or sell it.
• The estate may pay. If there's a probate estate with cash, the executor or administrator can pay the taxes as an estate debt.
• Heirs usually aren't personally liable for the deceased person's old taxes beyond their share of the property, but the house can still be sold to pay them.

If there's no will or probate, ownership may pass to several heirs at once. See probate in Hampton Roads: what executors need to know.

Can the City Sell an Inherited House for Back Taxes?

Yes. The same tax sale rules apply whether the owner is living or not. Under Va. Code §58.1-3965, a locality can generally start a tax sale case once taxes are still unpaid on December 31 following the second anniversary of the due date. Because inherited houses often go unpaid for a while before anyone notices, some families learn about the problem after the account is already with an attorney. Our Virginia tax delinquency timeline explains each stage.

What heirs receive in a tax sale case

The attorney has to identify and notify every owner. With inherited property, that often means every heir, including relatives out of state. If an heir can't be found, notice may be made by publication.

Your Options as an Heir

Option 1: Pay the back taxes and keep the house

If someone in the family wants to live in the home or rent it out, paying the full balance stops the tax sale. Ask the treasurer whether a payment plan is possible.

Option 2: Pay the taxes from the estate

If the estate has money, the personal representative can pay the taxes before distributing anything to heirs.

Option 3: Sell the house and pay the taxes at closing

This is often the simplest path when no one wants the house. The back taxes, penalties, interest and fees are paid from the proceeds at closing, and the rest is divided among the heirs. We buy inherited homes as-is, so you don't need to clean out, repair or list the house. Learn more about selling an inherited house fast in Virginia Beach.

Option 4: Do nothing

If nothing is done, the house can go to a tax sale. Any surplus has to be claimed through the court. See Virginia tax sale surplus proceeds.

Can You Sell an Inherited House Before Probate Is Done?

It depends on how title passed. If there's a will, the executor may have authority to sell once qualified with the circuit court clerk. If there's no will, the heirs may all need to sign, or an administrator may need to be appointed. A title company or a Virginia probate attorney can confirm what's needed. We work with families through this regularly and can wait for paperwork if needed.

Taxes Beyond Property Taxes

Property taxes aren't the only tax question after inheriting. Selling may also raise capital gains questions. Virginia heirs usually get a stepped-up basis. See capital gains tax on an inherited house in Virginia and talk with a tax professional about your situation.