Please direct all inquiries through RVA 311
Department of Finance
900 E. Broad St.
Richmond, VA, 23219
Richmond’s Real Estate Tax Sale Program
In Virginia, a Tax Sale Program is a legal process where a locality may take possession of a tax-delinquent property and put that property up for auction in an effort to recover those delinquent property taxes. It is one of the final steps in the delinquent tax collection process and is only used once all other options have been exhausted.
The City of Richmond’s Real Estate Tax Sale Program is part of the City’s commitment to fair, consistent, and responsible tax administration. Our priority is to help property owners address delinquent real estate taxes early and work alongside residents to find solutions long before a tax sale is ever considered.
Properties only become eligible for Real Estate Tax Sale after:
- Taxes have remained unpaid for two full calendar years
- Multiple notices and outreach efforts have been made
- The property meets the legal requirements established under Virginia law
What Property Owners should know?
- The City’s first priority is helping property owners resolve delinquent taxes long before a tax sale is ever considered.
- A real estate tax sale is one of the final steps in the delinquent tax sale process
- Tax sales follow a strict legal process under Virginia State Code—including notice given, court oversight, and opportunities to redeem.
- Payment arrangements and early communication may prevent a tax sale entirely.
For any questions and to learn more about the status of your property call 311.
"The City is committed to working with taxpayers to pay any tax liability if they reach out to us. The Tax Sale program only exists for the small group of properties that go well beyond a workable and reasonable timeframe for compliance. It ensures fairness in administration of taxes in Richmond and should give positive results in our wider efforts to address delinquent taxes and collection. If you have questions, call 311, we are here to help.” — Ken Martinez, Director of Revenue Administration
Updates
- 9/28 — CAO Memo: Real Estate Tax Sale Program + Delinquent Tax Process Update
Frequently Asked Questions
1. What is a Tax Sale Program?
A tax sale program in Virginia is a legal process where a city or county auctions off real estate to recover delinquent property taxes. The judicial tax sales are governed by the Code of Virginia ( §§ 58.1-3965, et seq. ) and typically includes specific components:
- Referral: Accounts may be handed over to the local municipality's contracted legal firm (Ballato) once internal collections are unsuccessful
- Lawsuit & Notice: The City files a lawsuit in the local Circuit Court and publishes notices of the pending sale in local newspapers and/or City's website.
- Redemption: Delinquent property owners can "redeem" their property and halt the auction by paying all taxes, penalties, interest, and legal fees before auction.
- Auction: If the debt is not paid, a Special Commissioner is appointed to sell the property at public auction.
2. What properties are not available for tax sale?
- Unbuildable properties: If the property does not meet the minimum requirements to obtain a permit, it is categorized as “unbuildable” and not eligible for tax sale.
- Bankruptcy: The property is not deemed eligible for tax sale if the owner of the property files for bankruptcy. If the case is dismissed, the City can proceed with the tax sale of the property.
3. When was the Tax Sale Program placed on hold?
The City’s Real Estate Tax Sale Program, which is jointly managed by the Department of Finance and the City Attorney’s Office, was paused in January 2023.
4. When will the Tax Sale Program be relaunched?
The City’s Real Estate Tax Sale Program will relaunch in November 2026
5. When will the first tax sale take place?
The first tax sale is anticipated in the second half of 2027.
6. When does a property become eligible for tax sale?
Per Virginia State Code §58.1-3965 , properties may be sold for delinquent real estate taxes when those taxes are delinquent for two calendar years (two New Year’s Eves after the due dates) or one year if the property has been condemned, deemed a nuisance or derelict, or has been declared blighted.
Example timeline:
If a tax bill was due on January 15, 2027, and the owner did not pay it:
- It becomes delinquent in 2027
- It remains delinquent through 2028
- Once December 31, 2028 passes (two calendar years), the property becomes eligible for sale anytime in 2029
7. Can I enter a payment arrangement?
Yes, taxpayers may enter a payment arrangement for delinquent real estate taxes.
Payment arrangements are customizable and the Delinquent Collections Unit will work with taxpayers to enter an arrangement that works for both parties.
- Delinquent taxpayers must stay up to date on current balances for the tax type they are in a payment arrangement for to avoid default.
- Delinquent taxpayers may only enter into a payment plan for one tax type at a time and may not enter into additional payment arrangements for 12 months after initiation of a previous payment arrangement.
If you wish to enter into or have questions about a payment arrangement(s), please contact RVA311 at (804) 646-7000 or click here to submit a request.
Roles and Responsibilities
| Process Stage | Responsible Party | Action/Responsibility |
| Delinquent Accounts Identified | Finance | Maintains the City’s real estate tax records, including a list of delinquent accounts. |
| Eligibility Reviewed | City Attorney’s Office | Research delinquent accounts to determine whether properties are eligible for the Tax Sale Program. |
| Property Selection | Finance + City Attorney’s Office | Determine which properties will enter the Tax Sale Program. |
| Tax Records Updated | Finance | Updates tax records to show that a property has entered the Tax Sale Program. Finance takes no additionalcollection action on the account while it is in the Tax Sale Program. |
| Notice to Property Owner | City Attorney’s Office | Mails a Notice of Intent to owners and occupants informing them that the property is now in the Tax Sale Program and publishes a list of properties that received notices. |
| Property Owner Has Options | Property Owner | Owners, heirs, and lienholders may contact the City Attorney’s Office for information about the case status, amounts owed, payment-plan options, and the right to redeem the property. |
| Payment Plan Option | Property Owner + Finance + City Attorney’s Office | After receiving a Notice of Intent and before a Notice of Auction is mailed, a property owner may contact Finance to request a payment plan. Once a payment plan is established, the City Attorney’s Office stops further tax sale action while the plan remains in good standing. |
