When a property owner cannot, will not or simply forgets to pay his or her property taxes the local municipality places a lien on the property. A lien is an official notice stating that the back taxes are owed to the municipality and that interest is now accruing, meaning that when you do finally pay the taxes you’ll actually be paying the tax amount (the principal) plus interest. The amount of interest varies from state to state, but in some states it is over 16% annually.