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At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is how we get compensated.
At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is
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If you live or work in California and do not pay your state taxes on time and in full, the state can place a lien against your property or business, claiming legal rights to it until you’ve paid your debt.
Options for having a lien against you lifted, depending on the circumstances, include paying your tax debt entirely, paying in monthly installments, applying for an offer in compromise, or appealing the lien.
It’s important to take care of liens as soon as possible to avoid paying more in the long run, damaging your credit, having your possessions seized, having your bank account frozen, or getting your wages withheld.
California residents who do not pay their state taxes on time can be subject to tax liens. When this happens, the government stakes a legal claim to your property until you pay off your debt.
This scenario can have serious negative consequences on your credit and finances. So if you find yourself struggling to settle tax debt, don’t ignore the problem. Here’s how to handle, or even prevent, a state tax lien in California.
What Is a California State Tax Lien?
If you fail to pay your state taxes, California’s Franchise Tax Board will send you a collections notice stating how much you owe and the deadline for paying that amount. If you do not pay your tax debt within 30 days of receiving this letter, the state can file a lien against your property.
The Franchise Tax Board records liens through your county’s recording office as well as the California Secretary of State. At this point, the tax lien against you becomes public.
A California state tax lien lasts for 10 years, and it can be extended two times for a maximum of 30 years. As long as you have a lien on your property, you cannot sell it.
If you fall into tax debt and end up with a lien against your property, don’t ignore it. The repercussions for continuing to be in debt to the state government include the following:
Paying more in the long-run. As long as you’re in debt, you’re racking up more late fees, interest, and tax penalties. Over time, these can be significant.
Poor credit. A lien can send your credit score plunging and hinder your ability to get future funding.
Having your possessions seized. To cover an outstanding debt, the Franchise Tax Board has the ability to seize and sell your assets, including your home.
Having your bank account frozen. Similarly, the Franchise Tax Board can issue a bank levy to take funds from your account to pay off your debt.
Garnished wages. The Franchise Tax Board might require your employer to withhold up to 25 percent of your earnings.
How to Settle a Tax Lien
Having a lien released seems straightforward: Simply pay the state what you owe. However, if you’re struggling financially, this can be extremely challenging.
Here are some of your options for having a lien removed:
Pay your full tax debt. This includes not only the amount of owed taxes but also any fees or interest you’ve accrued.
Pay your tax debt in installments. If you’re struggling financially, the Franchise Tax Board might allow you to pay off your debt through a monthly payment plan. You must first file any outstanding tax returns and fill out the appropriate request form. If you qualify, the tax board will halt any further collections.
Apply for an offer in compromise. If you cannot pay your debt now or in the foreseeable future, you might be eligible for an offer in compromise. In this scenario, the government allows you to pay off your tax debt for less than the full amount. To qualify, you must fill out the appropriate forms and provide documentation to prove your financial situation.
Appeal the lien. If you can prove that the Franchise Tax Board has issued a lien against you by mistake, contact the agency right away to initiate an investigation. You must prove this error within 30 days.
Once you’ve satisfied the lien, the Franchise Tax Board will send a release document to your county’s recording office and the California Secretary of State within 40 days.
State Tax Liens on Businesses
California businesses are also vulnerable to tax liens if they don’t pay their state and payroll taxes. In this scenario, the lien then gets placed on your company and its assets. During this time, you cannot sell or refinance the business or its property. The California Employment Development Department is the entity responsible for collecting state employment taxes and issuing liens against businesses. The Employment Development Department cannot, however, seize the company’s assets.
Similar to the process for a personal tax lien, your company will first receive notification of its delinquent taxes and the deadline for paying them off to avoid a lien. This notice is called an Employer Account Statement. You can contact the Employment Development Department to appeal the amount you owe or try to come up with a solution if you cannot afford to pay the full amount. Do not ignore this statement, as doing so can lead to having a lien issued against your company.
Once you’ve paid off your business’s debt and any accompanying fees, the state will send a release for your lien to the county recording office within 40 days. If you want a copy of this release document, you must request and pay for it yourself. Even after you’ve paid your debt and the lien has been released, however, it will stay on your business’s credit report for seven years.
If you’re struggling to pay your tax debt and fear the state will issue a lien against your property (or already has), don’t panic. You can take several steps to find relief without irreparably harming your credit or resorting to bankruptcy. Our experts at Solvable can help you on the right path toward debt relief.
Solvable is a for-profit company that connects consumers with third-party providers across a wide range of financial and home service categories, including tax resolution, personal loans, credit cards, student loan refinancing, home insurance, and home services. Our platform is free for consumers to use, and we may receive compensation from partners when users engage with their products or services.
We publish a mix of editorial content and partner-supported features. Some articles may include sponsored offers or affiliate links, which are clearly labeled. While compensation may influence which products are featured or where they appear, it does not affect our editorial opinions or reviews. We do not accept payment in exchange for favorable ratings or endorsements. Reviews and assessments reflect our own independent views and may not cover every option available.
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Solvable is compensated by some of the companies featured on our website. Most often, we receive fees when a user clicks on a link, fills out a form, applies for, or obtains a product or service from one of our partners. These may include providers of financial services (like loans and credit cards), tax assistance, home insurance, and home services.
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In addition, we may be compensated in the following ways:
Referrals to consumers who use online forms or tools that may connect them with experts;
Marketing services related to tax resolution, tax preparation, tax audit help, and general tax assistance;.
Referrals to providers in categories such as financial services, tax support, home insurance, and home services.
We encourage you to shop around, compare services and costs, and perform your own due diligence before making a decision—especially since individual experiences with providers can vary over time.
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We encourage all users to:
Shop around and compare costs, services, and reviews
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Ask questions directly to the provider before signing any agreements
Solvable is not a law firm and does not provide legal advice. If you’re working with an attorney or financial professional, we encourage you to speak with them about your specific situation, as they will be most familiar with your needs and the laws in your state.
Our goal is to make it easier for you to explore your options, but the decision is ultimately yours.
Personal Loans Advertiser Disclosure
The personal loan offers you see on Solvable are from companies or affiliates that may compensate us. This compensation may impact where offers appear on the site, including their order, prominence, or whether a lender is featured. Solvable does not include every personal loan provider or all available offers in the marketplace.
Loan approval and terms are determined solely by the lender. You should carefully review each provider’s terms and conditions to find the option that best fits your financial situation. We make reasonable efforts to keep information up to date, but rates, fees, and terms are not guaranteed and may change at the discretion of each provider. There is no guarantee you will be approved for credit or that you will qualify for the advertised rates or terms.
Be sure to:
Review actual loan terms directly with the lender
Ask about origination fees, which can typically be around 1%
Understand all costs, repayment terms, and requirements
Know that some lenders may require an existing account or specific credit profile for approval
Loan amounts typically range from $1,000 to $35,000, but the amount you qualify for, and the terms offered, will depend on your state, credit history, financial situation, and the lender’s underwriting criteria.
Credit Card Advertiser Disclosure
Some of the credit card offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether they’re labeled as “featured.” Solvable does not include all credit card companies or offers available in the marketplace.
Credit card approval is determined by the individual issuer. We recommend reviewing each provider’s terms and conditions to ensure the card fits your financial needs.
We strive to provide accurate information, but rates, fees, and terms are not guaranteed and may change at any time at the discretion of the issuer. Approval is not guaranteed, and advertised rates or rewards may not be available to all applicants.
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Business Loans Advertiser Disclosure
Some of the business loan offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether a lender is featured. Solvable does not include all business loan providers or offers available in the marketplace.
Business loans are intended strictly for commercial purposes. Any funds or assets obtained through these loans must be used for business-related activities—not for personal, family, or household use.
Most business funding partners in our network do not require collateral, but depending on your needs and the lender’s underwriting criteria, you may be offered other financial products. Traditional bank and SBA loans often require collateral and have more extensive approval processes.
It’s important to understand:
There is no one-size-fits-all business loan solution
Offers and terms will vary depending on your business’s financial profile
Underwriting criteria, approval, and terms are determined solely by each lender
Rates, fees, and availability are subject to change and are not guaranteed
Not all products are available in all states or for all types of businesses
We encourage you to review each provider’s terms and consult with a financial advisor or tax professional before accepting any loan offer.
Student Loan Refinancing Advertiser Disclosure
Student loan refinancing offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact where and how offers appear on our site, including the order in which they appear or whether a lender is featured. Solvable does not include all student loan companies or all available refinancing options in the marketplace.
Pursuant to agreements with our partners and affiliates, Solvable may receive updates about the status of your application, including—when available—loan amounts, application status, or final decisions. Each partner’s use of your information is governed by their own privacy policy, which we encourage you to review directly.
Refinancing may help reduce your monthly payments or interest rate, but potential savings will vary depending on the interest rate, balance, and remaining repayment term of your existing loans. In some cases, refinancing may result in a longer repayment term and higher total repayment over the life of the loan—even if monthly payments are lower.
Please keep in mind:
Variable rates may fluctuate over time based on market indices like SOFR, Prime, or another benchmark rate, and may vary based on borrower qualifications and whether a co-signer is used.
Fixed interest rates may also depend on term length, credit profile, or presence of a co-signer.
All terms, rates, and product availability are subject to change at the lender’s discretion and may not be available in all states or for all types of loans.
Due to federal lending regulations, lenders are required to provide potential borrowers with certain disclosures, including an Application Disclosure and an Approval Disclosure, during the application process. Solvable is not a lender or creditor and does not originate or fund loans, nor can we alter or offer credit terms. Only the lender you apply with can provide specific loan details and required disclosures.
Please Note:
Certain federal and private loans may not be eligible for consolidation or refinancing.
Some refinancing options may eliminate borrower benefits (e.g., grace periods, income-driven repayment plans, or federal loan forgiveness eligibility).
Loans in default typically cannot be refinanced until you complete a qualifying repayment program.
Be wary of providers requesting upfront fees for student loan services.
Other financial options—like personal loans, debt relief, or consolidation—may also be worth exploring. Consult with a licensed financial or tax professional to determine what’s best for your situation.
Home Insurance Advertiser Disclosure
Home insurance offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact how and where offers appear on our site, including whether a company is featured or the order in which it is listed. Solvable does not include all home insurance providers or all offers available in the marketplace.
Each provider sets its own underwriting criteria, and coverage availability may vary based on the age, condition, location, and value of the home. Policy terms, limits, exclusions, and pricing are determined by the insurer and may change at any time.
Solvable is not a licensed insurance agency and does not issue policies or offer insurance advice. We recommend that users:
Compare quotes from multiple home insurance providers
Review coverage options, exclusions, and deductibles carefully
Confirm all terms directly with the insurer
Speak with a licensed insurance agent if you have questions about your specific needs
Home Services Advertiser Disclosure
Home service offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may affect how and where offers appear on our site, including their placement, order, or whether a provider is featured. Solvable does not include all home service companies or all available options in the marketplace.
Services may include HVAC repair, plumbing, electrical work, home cleaning, appliance maintenance, and other residential needs. Providers set their own pricing, availability, and service standards.
Solvable does not provide home services directly and does not guarantee the quality or reliability of any third-party service. We recommend that consumers:
Compare multiple providers and read recent customer reviews
Ask about service guarantees, pricing structures, and insurance or licensing where applicable
Confirm all details directly with the provider before scheduling any service
Important Notice About Solvable’s Role
Solvable is an online lead generation platform that allows consumers to compare rates, terms, and offers from a network of lenders and service providers. We do not offer, extend, or fund any loans. Instead, we connect users with lenders who may be able to help based on the information submitted through our forms.
Submitting an inquiry on Solvable is not a loan application. To move forward, you must speak directly with the lender, review their terms, and complete any application materials they require. Lenders in our network may not offer the lowest available rates, so we encourage you to compare quotes from multiple sources—including banks, credit unions, and other financial institutions—to ensure you’re getting the best deal.
Solvable does not guarantee loan approval, interest rates, or potential savings. Any estimated savings or quotes are for informational purposes only and may not reflect your actual terms. Final rates, loan amounts, and eligibility are determined solely by the lender based on their underwriting criteria, which Solvable does not control or have access to.
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