This article provides a general overview of how unpaid real property taxes are sold and enforced in the State of Mississippi. It is intended for educational purposes only and is not an exhaustive explanation of all applicable laws or procedures. Anyone seeking legal advice should consult qualified legal counsel.
Source and Attribution
This article reflects Tax Sale Resources’ plain-language interpretation of an attorney opinion letter received from Jerry N. Higgins, MSSW, JD, of Carlisle Law.
The attorney opinion letter provides a general summary of Mississippi statutes governing tax lien sales and enforcement. This article does not add legal analysis, opinions, or conclusions beyond what was contained in that letter. Its sole purpose is to make the information easier to understand for a general audience.
How the Mississippi Tax Sale Process Works
Mississippi tax sales are governed primarily by Mississippi Code Annotated Sections 27-41, 27-43, and 27-45.
In Mississippi, counties functionally sell a tax lien at the annual tax sale. That lien is subject to a two-year redemption period and, if not redeemed (and if all statutory notice requirements are satisfied), the lien can mature into a tax deed issued by the chancery clerk.
When property taxes are not paid, the county sells the delinquent taxes at a public tax sale. The purchaser holds the tax lien interest during the two-year redemption period. During that time, the property owner and certain other interested parties have the right to redeem the property by paying the amounts required by statute.
As the two-year redemption period approaches expiration, the chancery clerk must complete a detailed statutory notice process. If the redemption period expires without redemption and notice requirements have been satisfied, the investor may be issued a tax deed by the chancery clerk.
While not legally required, most investors then file a Confirmation Action in court. This process is similar to a quiet title action in other states and is used to permanently extinguish any remaining interests held by prior owners, lienholders, or mortgagees.
What Investors Acquire at a Mississippi Tax Sale
Under Mississippi law, the tax collector sells land for unpaid taxes, penalties, and costs to the highest and best bidder for cash.
The statutes describe the winning bidder as receiving “perfect title” to the land sold for taxes. However, that title is subject to the right of redemption and does not include the right of possession during the two-year redemption period.
In practical terms, investors hold a tax lien interest during the redemption period. Full possessory rights arise only after the redemption period expires, statutory notice requirements are met, and a tax deed is issued.
When Mississippi Tax Sales Occur
Each Mississippi county elects to hold its tax sale either on the first Monday in April or the last Monday in August.
Sales are conducted from 8:30 a.m. to 4:30 p.m. on successive days until all parcels are sold or struck off to the county. The sale date chosen by the county determines when the two-year redemption period expires.
Mississippi law also allows counties to conduct tax sales through approved online auction platforms.
The Bidding Process
Mississippi tax sales are conducted through a competitive bidding process. Bidding begins at the amount of unpaid taxes plus statutory fees and costs.
Bidders may submit an overbid above the minimum amount. Any overbid paid by the winning bidder is not recoverable if the property is redeemed. Instead, the overbid is deposited into the county treasury and may only be accessed by the former property owner after the redemption period expires and the property is lost.
The vast majority of Mississippi tax sales are conducted online through GovEase, which administers tax sales for more than 90 jurisdictions across the state.
Out-of-State Investors
Mississippi does not prohibit out-of-state individuals or entities from participating in tax sales. While counties may have slightly different registration requirements, non-resident investors generally face no additional restrictions.
Statutory Notice Requirements
All notice related to Mississippi tax sales is handled by the counties.
Before the annual tax sale, counties must advertise the sale locally. For April sales, advertisements must run after February 15 and continue for two weeks. For August sales, advertisements must run after August 5 and continue for two weeks. These notices identify the properties being sold, the location of the sale, and online bidding instructions if applicable.
More critically, before a tax lien may mature into a tax deed, the chancery clerk must identify and notify all property owners and recorded interest holders, including mortgagees and lienholders. This notice process must occur no more than 180 days and no less than 60 days before the redemption period expires.
Notices must be sent by certified mail with return receipt requested. Property owners must also be notified through personal service, certified mail, and newspaper publication unless the owner has an out-of-state address. If personal service cannot be achieved, notice must be posted at the owner’s residence and mailed to an address diligently determined by the clerk.
The clerk must also publish notice in a qualifying newspaper at least 45 days before redemption expires and must formally document that all required notice efforts were completed.
Properties Not Purchased at the Tax Sale
Properties not purchased by investors at the tax sale are struck off to the state.
In this posture, the state holds the same rights as a private tax sale purchaser. If the property is not redeemed within the two-year redemption period and statutory notice requirements are met, the state’s title becomes final and the state may take possession.
Redemption Rights and Recoverable Amounts
Property owners and other parties with an interest in the property have the right to redeem during the two-year redemption period.
Interest accrues on redeemed tax liens at a rate of 1.5 percent per month. Chancery clerks are required to distribute redemption proceeds to investors within 20 days after the end of each month.
Amounts recoverable by the investor include the delinquent tax amount paid, statutory interest, certain publication fees, and monthly interest. Any overbid paid at the tax sale is not recoverable and remains with the county.
Issuance of the Tax Deed
After the two-year redemption period expires, and if no redemption has occurred, the investor may demand issuance of the tax deed from the chancery clerk.
This process typically involves confirming redemption status with the clerk’s office and paying required processing fees. Once completed, the chancery clerk issues and mails the tax deed.
Investors must also be aware of any subsequent tax liens. If later years of unpaid taxes are not paid or redeemed, those liens may mature in the future and result in loss of the property.
Mississippi law also provides that purchasers may not challenge the validity of a tax sale. If a tax sale is later declared void or invalid, the purchaser retains the right to enforce repayment of taxes paid through a court action similar to foreclosure. However, no right of action exists against the chancery clerk or sheriff for errors leading to invalidation.
Achieving Marketable and Insurable Title
Title insurance companies generally will not insure tax deed properties without additional steps.
In Mississippi, this is typically addressed either through a tax sale certification review conducted by a specialized provider or by filing a Confirmation Action in court. A Confirmation Action requires all potential claimants to assert their interests or be permanently barred.
While not required by statute, completing one of these steps is generally necessary to convey marketable and insurable title.
Subsequent Year Taxes
Purchasers of the most recent tax lien are not required to purchase subsequent years of unpaid taxes. However, failure to pay or redeem later tax years may result in the investor losing the property when those liens mature.
Bankruptcy Considerations
If a property is sold for taxes before a bankruptcy filing, the tax sale process continues as described. The bankruptcy trustee may redeem the property, and any overbid may become part of the bankruptcy estate.
If bankruptcy is filed before the tax sale, the two-year redemption period still runs. However, federal bankruptcy law may extend the redemption period by up to 60 days if the state law deadline would otherwise expire sooner.
Interested in Investing in Mississippi Tax Sales?
If you are interested in investing in Mississippi tax sales, you can reach out to Tax Sale Resources support to learn how we may be able to assist.
Depending on your needs, this may include access to tax sale data, research tools, asset management support, financing options, or joint venture opportunities.
Any assistance offered is separate from the legal information summarized above and is provided for educational and operational support purposes only.
For legal questions or advice regarding Mississippi tax sale law, consultation with qualified legal counsel is recommended.
