When property taxes become delinquent interest charges begin accruing on the base tax balance. Payments made on delinquent taxes are first applied to charges, then to the base tax amount. TCA 67-5-2405 (PDF) requires the Trustee to file suit to collect delinquent real estate taxes. Lawsuits are filed with Chancery or Circuit Court to collect delinquent property taxes, penalties, interest and cost of the suit.
For property taxes, delinquency dates vary by tax authority as noted below.
- Shelby County
Property taxes become delinquent on the dates listed above. Upon the delinquency date, interest begins to accrue on any unpaid tax amount. The amount of interest varies as listed below.
Shelby County, Arlington, Collierville, Lakeland, Millington and Memphis:
1.5% interest each month or 18% per year
- March 1: 1.5% interest + 5% penalty for the 1st month
- April 1: 1.5% interest every month thereafter
- March 1: 0% interest + 5% penalty
- April 1: 1% interest + 2% penalty
- May 1: 1% interest + 1% penalty
- June 1: 1% interest + 1% penalty
- July 1: 1% interest + 1% penalty
- August 1: 1% interest every month thereafter
Total amount due is calculated with interest through the last day of the month. However, other legal fees may be added during the month. For this reason, all tax year payoffs will be verified by the Trustee on the day of payment receipt. Payments will be applied and any remaining balance must be paid by the taxpayer before the tax lien can be removed.
For additional information, please contact Shelby County Trustee Customer Service at (901) 222-0200.