Oregon charges interest of 1⅓% per month — 16% a year — on delinquent property taxes, until they're paid. Once an account reaches the foreclosure stage, a 5% penalty on the taxes and interest is added. Because every year's unpaid bill carries its own interest, a few missed years can grow to roughly four times a single year's bill.
A worked example
Say a Medford home has a $3,000 annual property tax bill and nothing has been paid for three years. This is a rough illustration using simple interest of 16% a year — your actual balance depends on installment dates and exactly when payments stopped.
| Unpaid bill | Tax | Approx. interest | Total |
|---|---|---|---|
| Year 1 (3 years late) | $3,000 | $1,440 | $4,440 |
| Year 2 (2 years late) | $3,000 | $960 | $3,960 |
| Year 3 (1 year late) | $3,000 | $480 | $3,480 |
| 5% foreclosure penalty | $594 | ||
| Roughly owed | $9,000 | $2,880 | $12,474 |
And the clock keeps running. During the two-year redemption period, interest continues on the old balance while new annual bills keep arriving. By the time the redemption period ends, a homeowner in this example could easily owe $20,000 or more — in one lump sum.
Why the lump sum is the real problem
Before the foreclosure judgment, Jackson County accepts partial payments, so chipping away is possible. After the judgment, the county generally requires the full redemption amount at once, in certified funds. For a household that fell behind because money was tight, that's often the point where catching up stops being realistic.
What this means if you have equity
If your house is worth far more than what's owed — which is common for long-time owners in the Rogue Valley — the growing tax balance is mostly coming out of your equity. Selling sooner pays the county less and leaves you more. Selling doesn't have to be the answer, though; here are all the options, including ones that let you keep the house.
This is general information, not legal or tax advice, and Rogue Valley Cash Buyers is not affiliated with any county or government agency. Deadlines and amounts depend on your specific account — the Jackson County (or Josephine County) Tax Collector can confirm exactly what you owe and where your property is in the process, and an Oregon attorney can advise on your situation.