How to Release a State Tax Lien

by Mark P. Cussen

Overview

Few things can be as annoying or inconvenient as a state tax lien. These legal claims can be attached to virtually any property you have, but are usually attached to real estate. This can greatly hamper the sale of your property, especially in a down market. To remove the encumbrance from your property, you will have to pay your arrearage.

Step 1

Contact your state department of revenue and ask how much you owe in taxes if you did not receive a written statement (which they are required to send you). If you got your bill a while back, have the state agency give you an updated amount that includes all accrued interest and penalties.
Step 2

Make payment arrangements with your state to pay off your tax bill. This is the only way that you will get your lien released. You can do this either via phone, mail or electronically.
Step 3

Make your tax payments on time if you have set up a schedule of payments. If you make a one-time payment, get a confirmation code or other proof of payment. Failure to do this will prevent the release of your lien.
Step 4

Make certain that your state releases the lien after you have paid your bill. You should receive written notification of this, but you may need to contact the appropriate state agency with a reminder to do this. Stay on the agency to get this done as soon as possible if you do not receive notice within 30 days of payment.

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Funds to pay your taxes
Funds to pay your taxes
Your state tax department may allow you to see the status of your lien release online. Log on to your state's department of revenue website to see if this is possible in your state.
Your state tax department may allow you to see the status of your lien release online. Log on to your state's department of revenue website to see if this is possible in your state.