Late payment penalties apply to taxes that are not paid by the due date. Any taxes unpaid on Jan. 2 become delinquent, and interest is added monthly. You have three years to redeem your property by paying all delinquent taxes. If still unpaid after three years, the property forfeits to the state.
Late payment penalties
If you pay your taxes after the due date, a penalty is added. Penalty rates are based on the classification of a property. Go to the Late Payment Penalties page for tables that show the rates that apply for 2026.
Delinquent taxes and redemption period
Phase 1 – Delinquent
- Any unpaid taxes are delinquent on January 2 of the following year
- Monthly interest is added on the unpaid tax and penalty
Phase 2 – Judgment
- The judgement is a tax lien entered against the property.
- A fee is added to cover the cost of publication and mail notification.
- Owners receive a letter of notification of this judgement in February.
Phase 3 – Publication
- A list of newly delinquent properties is published in a local newspaper in March.
- Publication last for two weeks
Phase 4 – Redemption Period
- Owners have three years to pay all delinquent taxes or set up a payment plan.
- Annual notice of the unpaid balance is mailed to owners and parties with legal interest.
Phase 5 – Last Year to Redeem
- Properties with unpaid taxes for 2022 or prior are in the last year to redeem.
- The sheriff serves a copy of the notice to the property in June 2026
- Properties on the Notice of Expiration of Redemption List will forfeit to the state on Sept. 1, 2026.
- Must be paid in full or set up a payment plan no later than Aug. 31, 2026
Tax forfeiture
When the redemption period expires, ownership transfers to the State of Minnesota. Management of the property is handled by Dakota County on behalf of the state. If the property has not been up for auction, contact our office for your options.
Your property has sold – surplus fund
If the property was sold at auction, there could be money left over that you could claim.
Go to Tax-Forfeited Property page for a list of properties with a surplus.
We want to help
There are programs and services available that may help residents reduce property taxes. If you are at risk of losing your property to tax forfeiture, the following options won't stop forfeiture.
Removing late payment penalties
If you paid your property taxes late, you may apply for an abatement to remove penalties, interest, or fees.
Qualifying reasons
Only the following situations may be approved. The situation must have impacted your ability to pay by the tax due date:
- Clerical error: An error made by the county or other taxing authority that caused the payment to be late
- Hardship: A tragedy suffered by the taxpayer. Such as a death in the family, extreme or extended illness, an accident or other extreme hardship.
- Postal error: An error made by the U.S. Postal Service where they admit to the error in writing
- Stop payment: A stop payment notice for a lost check that was mailed to pay property taxes by the due date. The stop payment must be within 30 days of the due date. Provide an approved notice from the bank.
Examples that do not qualify
- Not receiving a tax statement, including statements mailed to a prior owner
- Payment not made by the due date or incorrect amount paid
- Financial hardship unless related to a government declared emergency
- Situation that did not occur around the tax due date
Applying
Before starting an application, make sure you have:
- Paid the full amount due to avoid more charges if the request is denied.
- Document supporting your situation.
You can submit an application using the 
Abatement of Property Tax Penalty Form.