Property Tax Delinquency in Peoria County — How It Works
Property taxes in Peoria County are billed by the County Treasurer (who also serves as County Collector), typically in two installments during the year. Unpaid installments become delinquent after their due dates and begin accruing statutory interest — and the county will eventually move to recover the taxes through the annual tax sale.
Here's the escalation timeline most homeowners don't fully understand until it's late:
- After each due date: Unpaid installments are delinquent and accrue interest of 1.5% per month under Illinois law.
- Published delinquency list: Before the annual tax sale, delinquent parcels are published and notice is sent.
- Annual Tax Sale: Illinois counties don't sell your home at this stage — they sell the unpaid tax debt to a tax buyer, who pays your overdue taxes in exchange for a lien plus penalty interest.
- Redemption period: After the sale you have a statutory period — generally about 2 to 2.5 years for owner-occupied residential property — to redeem by paying the County Clerk the taxes plus penalty interest.
- Tax deed: If you don't redeem, the tax buyer can petition the Circuit Court for a tax deed and take ownership — which is why acting before the redemption period expires is critical.
Importantly: you can sell at any point before a court-ordered tax sale is completed. All delinquent taxes, interest, and penalties are paid from your sale proceeds at closing. You don't have to come up with the money yourself before selling — it comes out of what we pay you.
What Happens at a Peoria County Tax Sale?
Illinois uses a tax-lien sale system rather than an immediate property auction. Key facts:
- At the annual tax sale the county sells your delinquent tax debt to a tax buyer — you do not lose the home at the sale itself
- You keep a statutory redemption period — generally about 2 to 2.5 years for owner-occupied homes — to pay the County Clerk and clear the lien
- Penalty interest accrues during redemption, so the longer you wait, the more it costs
- If you never redeem, the tax buyer petitions the Circuit Court for a tax deed and can take ownership — and you receive nothing, even with significant equity
- Properties delinquent for multiple years can be included in a "scavenger sale"
The critical lesson: waiting until the auction means giving away any equity you've built. Selling before the auction — even to us at a discounted cash price — almost always results in more money in your pocket than letting the tax sale proceed.
Multiple Years of Back Taxes — Can You Still Sell?
Yes. Multiple years of delinquent taxes, accumulated interest, and penalties are all paid from sale proceeds at closing. We've purchased Peoria County properties with 2–5 years of back taxes. The title company calculates the exact payoff amount, the county is paid directly at closing, and you receive whatever equity remains after all liens are satisfied.
If back taxes plus any mortgage balance exceeds your home's value, you may need to contact the county about a settlement or negotiate. But in our experience, most Peoria homeowners with tax delinquency still have equity — they just need help accessing it quickly.
Other Tax Situations We Help With
- IRS tax liens: Federal tax liens recorded against your property must be satisfied or released before the property can transfer. We work with the closing attorney and sometimes directly with IRS representatives to handle this at closing.
- State income tax liens: The Illinois Department of Revenue can file liens against property for unpaid Illinois income taxes — these work similarly to other liens and are paid from proceeds at closing.
- HOA delinquency: Peoria-area HOAs can file liens for unpaid dues and assessments. These are also resolved at closing.
How to Check Your Peoria County Tax Status
If you're unsure how much you owe or where you are in the process, contact the Peoria County Treasurer/Collector or the Peoria County Clerk (which handles tax-sale redemptions). Look up your parcel and balance through the county at peoriacounty.gov. They can tell you your delinquency amount, whether your taxes have been sold, and your redemption deadline.