 TITLE: Do Taxes Affect My Credit Score? CONTENT: What Happens to Your Credit When You Don't Pay Taxes?\n-----------------------------------------------------\nCredit scores are based on information in the credit reports compiled at the national credit bureaus (Experian, TransUnion and Equifax). These reports reflect your history of borrowing and repaying loans and also note certain legal proceedings, such as bankruptcy filings and foreclosures. Your credit reports don't track tax bills or payments, so your record of paying taxes on time, or failing to do so, does not factor into the calculation of your credit score.\nFailure to pay your income tax can lead to a federal tax lien against your property. A lien entitles the IRS to take whatever unpaid taxes you owe (plus penalties and interest) from the proceeds of the sale of your property.\nTax liens haven't appeared on credit reports since 2018, so they cannot lower your credit scores, but tax liens can still damage your credit: Lenders can discover tax liens through public records searches when considering applications for mortgages or other loans. Some lenders may consider a tax lien grounds for denying your application. END