A property tax lien is a lien or claim for money due to a federal, state, or local government for unpaid and delinquent taxes. For example, the federal government may place a lien on a homeowner’s home or other real property for unpaid federal income taxes, and state and local governments (often counties) may place a lien on real property for unpaid income or property taxes.

The federal, state, or local government entity—also known as a taxing authority—may seek to recover payment for unpaid taxes by forcing the sale of the property on which the lien is placed in the foreclosure process—a process in which the validity of the lien and satisfaction (payment) for the lien is litigated or determined in court.

In North Carolina, a property tax lien is a legal claim against a property for unpaid property taxes. When property taxes are not paid, the county in which the property is located has the authority to place a lien on the property. This lien has priority over most other liens or claims on the property, meaning it must be paid first if the property is sold. If the taxes remain unpaid, the county can initiate a foreclosure process to enforce the lien. During this process, the property can be sold at a public auction to satisfy the tax debt. The foreclosure process for tax liens in North Carolina is judicial, meaning that the county must go through the court system to obtain a judgment to foreclose on the property. This ensures that the homeowner's due process rights are protected, and the validity of the lien and the amount owed can be contested in court. Additionally, the Internal Revenue Service (IRS) can place a federal tax lien on a property for unpaid federal taxes, which can also lead to a forced sale of the property to collect the debt.