Owner GuardianWhat Are Excess Proceeds After a Tax Sale?
By the Owner Guardian Team · Published 2026-10-10 · Updated 2026-10-11
Excess proceeds are the money left over when a property sells at a tax sale for more than the amount owed.
A simple example
Suppose a home has $12,000 in unpaid taxes, penalties, and sale costs. At the county auction it sells for $90,000. After the $12,000 is paid, $78,000 remains. That remainder is the excess proceeds.
Who gets the money?
The former owner and parties with recorded interests, such as lienholders, may claim it. If the owner has died, heirs or the estate may be entitled.
Why it goes unclaimed
- Notices go to outdated addresses
- Family members do not know about the property
- People assume the letter is a scam
- The process seems complicated
The Supreme Court weighed in
In Tyler v. Hennepin County (2023), the U.S. Supreme Court held that a government may not keep surplus value beyond the tax debt. Several states updated their laws in response.
Deadlines
In California, claims are generally due within one year after the tax deed is recorded (Rev. & Tax. Code §4675). Other states set different windows.
Sources: Cal. R&T Code §4675; Tyler v. Hennepin County.
Published October 2026. General information, not legal advice.