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Tennessee tax sale redemption period: the 2026 change

Tennessee shortened and simplified the redemption period for tax sales on July 1, 2026. If your property sold at a tax sale, or is about to, the date of the court's confirmation order now decides which set of rules you are under. Here is what changed, what redemption costs, and how it is done.

Short answer

For Tennessee tax sales confirmed on or after July 1, 2026, you have one year from the court's order confirming the sale to redeem if the taxes were delinquent three years or less, and 90 days if they were delinquent more than three years. Vacant, abandoned property can have a 30-day period. To redeem, you file a motion and first pay the clerk the taxes and costs plus 12% a year on what the buyer paid.

Licensed Tennessee auctioneerUpdated November 2026

The new rule, for sales confirmed on or after July 1, 2026

Public Chapter 971 rewrote the redemption period so that it turns on one thing: how long the taxes were delinquent.[1]

  • Delinquent three years or less: one year from the entry of the order confirming the sale.
  • Delinquent more than three years: 90 days from the entry of that order.

The change applies to confirmation orders entered on or after July 1, 2026.[1][2]

The clock runs from the court's order confirming the sale, not from the sale day itself. Ask the clerk for the date that order was entered.

Sales confirmed before July 1, 2026

For confirmation orders entered before July 1, 2026, the earlier scale still applies:[3]

  • Delinquent five years or less: one year
  • More than five but less than eight years: 180 days
  • Eight years or more: 90 days

Vacant and abandoned property: 30 days

The redemption period can be as short as 30 days when the court is shown the property is vacant and abandoned. That showing requires periodic inspections over a two-month period, at different times of day, with at least three of them showing the property is abandoned.[3]

How redemption actually works

  1. Pay the clerk first. Before filing the motion to redeem, pay the clerk the delinquent taxes, penalty, interest and court costs, plus interest at 12% a year on the entire purchase price the buyer paid, running from the date they paid it. If the money is not paid on time, the redemption fails.[3]
  2. File the motion to redeem in the same tax lawsuit, within the redemption period.[3]
  3. The buyer can claim added sums. The clerk notifies the buyer within 10 days, and the buyer has 30 days to claim certain extra costs: taxes it paid, insurance, costs to prevent waste, code or zoning compliance costs, homeowners association dues, and additional interest.[3]
  4. Pay the added sums on time. They are due by the later of the end of the redemption period or 30 days after the court's order. If they are not paid, the redemption fails.[3]
  5. Title comes back. When redemption is complete, the buyer's title is divested.[3]
The 12% math
Say the tax-sale buyer paid $40,000 and you redeem six months later. The redemption interest alone is about $40,000 x 12% x 0.5 = $2,400. That is on top of the delinquent taxes, interest, penalty, court costs and any added sums the buyer claims. The higher the sale price and the longer you wait, the more it costs.

During the redemption period

Possession
The order confirming the sale gives the buyer the right to possession, and a writ of possession can issue on the buyer's application in a proper case.[4]
The deed
According to the University of Tennessee's County Technical Assistance Service, the clerk can issue the tax deed before or after the redemption period ends; one issued before is marked subject to statutory redemption.[5]
Someone offering to buy your redemption right
The right to redeem can be transferred, but the court will deny a redemption by someone engaged in speculation or profiteering. That is presumed when they paid you less than the sale price minus the redemption amount, and the court can award attorney fees.[3]

If you cannot afford to redeem

Redemption has to be paid in cash on a short clock. If that is not realistic, two things are worth knowing. If the sale brought more than what was owed, the former owner may be able to claim the excess proceeds.[6] See how to claim tax sale excess proceeds.

And if the sale has not happened yet, selling the property yourself first usually keeps far more of the equity, with the taxes paid at closing. See selling tax-delinquent property before a tax sale.

No cost to you. The buyer pays a 10% premium on top of the winning bid, and FALCO is paid from that premium. FALCO routes the property to a licensed Tennessee real estate and auction firm.

Questions

Common questions

What is the redemption period for a Tennessee tax sale in 2026?

For sales whose confirmation order was entered on or after July 1, 2026, the period is set by how long the taxes were delinquent: one year from the order confirming the sale if delinquent three years or less, and 90 days if delinquent more than three years.

What was the redemption period before July 1, 2026?

For confirmation orders entered before July 1, 2026, the earlier scale applies: one year if the taxes were delinquent five years or less, 180 days if more than five but less than eight years, and 90 days if eight years or more.

How much does it cost to redeem a property after a Tennessee tax sale?

Before filing the motion to redeem, you pay the clerk the delinquent taxes, penalty, interest and court costs, plus interest at 12% a year on the full price the tax-sale buyer paid, from the date they paid it. The buyer can then claim certain added sums, such as later taxes and insurance they paid.

Can the tax sale buyer take possession during the redemption period?

The order confirming the sale gives the purchaser the right to possession, and a writ of possession can issue on the purchaser's application in a proper case. If you are still living in the property, talk to an attorney about your situation right away.

What happens if the redemption is not completed on time?

If the required amounts are not paid to the clerk on time, the redemption fails under the statute. If the buyer's added sums are not paid by the later of the end of the redemption period or 30 days after the court's order, the redemption also fails.

What does it cost to sell through FALCO before a tax sale?

No cost to you. The buyer pays a 10% premium on top of the winning bid, and FALCO is paid from that premium. FALCO does not buy property. Licensed Tennessee real estate and auction firms run every sale.

Sources

  1. [1]2026 Tenn. Pub. Acts ch. 971 (SB1983), amending Tenn. Code Ann. § 67-5-2701(a)(1)(C)
  2. [2]Tennessee General Assembly, SB1983 bill history
  3. [3]Tenn. Code Ann. § 67-5-2701 (redemption)
  4. [4]Tenn. Code Ann. § 67-5-2503 (possession after the order confirming sale)
  5. [5]University of Tennessee CTAS, Redemption
  6. [6]Tenn. Code Ann. § 67-5-2702 (excess proceeds)

Statute text was checked against Public Chapter 971 and the published code. Redemption deadlines are strict; confirm dates and amounts with the clerk and an attorney.

Keep reading

Before a Tennessee tax saleClaiming tax sale excess proceedsInherited property with back taxesTell us what you are dealing with

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This page is general information about Tennessee and federal law, not legal, tax, or financial advice, and not a promise about any outcome. Laws change and every situation is different. For advice about your circumstances, consult a licensed Tennessee attorney, CPA, or other licensed professional. FALCO is not a law firm, a government agency, or a court, and is not affiliated with any of them. FALCO does not buy, list, broker, or sell anything itself. Licensed Tennessee auction firms, and licensed real estate firms where real estate is involved, run every sale.