The LienToDeed blog
How Tax Liens Work: From Missed Tax Bill to Tax Deed
When a property owner skips a tax bill, the county places a lien on the property and sells that lien to an investor as a tax lien certificate. The inv…
Tax Lien vs. Tax Deed: Lien States, Deed States, and Everything Between
In lien states, investors buy the tax debt as a certificate and earn interest when the owner redeems. In deed states, the county auctions the property…
How Tax Deed Auctions Work: Registration, Deposits, and Buyer Beware
At a tax deed auction, the county sells the property itself to the highest bidder. You must register and post a deposit before the sale — in Florida, …
Tax Lien Interest Rates by State: What Investors Actually Earn
Tax lien rates are set by state law and bid down at auction: Florida starts at 18%, Arizona at 16%, New Jersey at 18% before switching to premium bidd…
Florida Tax Certificate Sales Explained: The Annual Lien Auction
Every spring, Florida tax collectors sell certificates on properties with unpaid taxes, on or before June 1. Investors pay the taxes owed and bid the …
Florida Tax Deed Sales Explained: Clerk-Run Auctions, All Year
Florida deed sales are run by Clerks of Court, online through RealTaxDeed, several times a month. The opening bid covers unpaid taxes, interest, and f…
What Is a Max Bid? The Valuation Discipline That Decides Tax Sale Returns
A max bid is the price you will pay for a property, set from research before the auction and never raised during it. Because properties are sold as-is…
Tax Sale Redemption Explained: Periods, Payoffs, and What It Means for Your Money
Redemption is the owner's right to stop a tax sale by paying all owed — back taxes, interest or premium, penalties, and fees. For lien holders, redemp…
Over-the-Counter Tax Liens and Deeds: The Leftovers Market, Explained
Properties and certificates that do not sell at a tax auction become available over the counter from the county at a set price, first come, first serv…
Tax Sale Surplus Funds: Where the Overbid Goes (and Why Bidders Never See It Again)
When a tax-sale property sells for more than the taxes and costs owed, the excess is surplus, held by the clerk for the former owner and eligible lien…
Beginner's Guide to Tax Lien Investing: A Start-to-Finish Checklist
Tax lien investing works like this: choose one state, learn its statute, register for its certificate sale, research the published list parcel by parc…
Tax Deed Title Problems and Quiet Title: Why Your Deed Is Not Insurable Yet
A tax deed gives you a tax title, not a warranty title — and title companies will not insure it until it is cleared. A quiet title action is a lawsuit…
How to Research a Tax Sale Property: The Due-Diligence Workflow
Researching a tax sale property means working public records: the property appraiser for what the parcel is and its assessed value, the clerk's tax de…
The Tax Sale Calendar: How Sales Are Scheduled (and Why Lists Keep Changing)
Tax sales follow statutory calendars: lien certificates sell in annual seasons (Florida by June 1, Arizona in February, Iowa third Monday in June), wh…
Alabama tax sales: season preview
Liens + tax deeds (hybrid)
Sale-of-lien counties: up to 12% per year, bid down in 1% increments to 0% (§§ 40-10-180 to 40-10-200). Sale-of-land counties: red
Arizona tax sales: season preview
Tax lien certificates
Up to 16% per year, bid down — bidding starts at 16% and the lowest rate wins (0% bids allowed); interest is simple, a fraction of
Arkansas tax sales: season preview
Tax deeds
n/a — pure tax deed state; the Commissioner of State Lands sells the parcel itself for taxes, penalties, interest and costs owed,
Colorado tax sales: season preview
Tax lien certificates
Federal discount rate (Federal Reserve Bank of Kansas City) in effect Sept. 1 plus 9 percentage points, rounded to the nearest who
Connecticut tax sales: season preview
Redeemable tax deeds
18% per year on the total purchase price, from the date of sale (Conn. Gen. Stat. § 12-157(f))
Delaware tax sales: season preview
Redeemable tax deeds
Depends on the method: monition sales — 15% penalty on the purchase price (9 Del. C. § 8729); direct sales in Kent and Sussex Coun
District of Columbia tax sales: season preview
Tax lien certificates
18% per year (1.5% per month or part thereof) on the amount in the certificate of sale, exclusive of surplus (D.C. Code §§ 47-1306
Florida tax sales: season preview
Liens + tax deeds (hybrid)
18% per year maximum, bid down in 0.25% increments to 0% (Fla. Stat. § 197.172(2), § 197.432(6)); 5% mandatory minimum on redempti
Georgia tax sales: season preview
Redeemable tax deeds
20% flat redemption premium on the purchase price for the first year or fraction thereof, plus 10% for each additional year or fra
Hawaii tax sales: season preview
Redeemable tax deeds
12% per year — interest paid by the redeeming taxpayer to the purchaser on redemption (HRS §231-67); this is redemption interest o
Illinois tax sales: season preview
Tax lien certificates
Penalty bid down from a statutory maximum of 9% per 6-month period (18% annualized); the winning (lowest) penalty percentage is ap
Indiana tax sales: season preview
Tax lien certificates
Premium (overbid) auction; return is penalty-based, not a bid interest rate. On redemption the owner pays 110% of the minimum bid
Iowa tax sales: season preview
Tax lien certificates
2% per month / 24% per year, fixed by statute (Iowa Code 447.1); the rate is not bid down - bidders compete by bidding down the un
Kansas tax sales: season preview
Tax deeds
n/a - Kansas sells no lien certificates to private investors; the county bids in delinquent parcels itself and later forecloses ju
Kentucky tax sales: season preview
Tax lien certificates
12% simple interest per year (1% per month), fixed by statute — no interest-rate bidding (KRS Chapter 134; see §§ 134.490, 134.549
Louisiana tax sales: season preview
Tax lien certificates
From Jan. 1, 2026: bid down from 1% per month (12% per year, simple/non-compounding) to a floor of 0.7% per month (8.4% per year),
Maine tax sales: season preview
Tax deeds
n/a — no tax lien certificate is sold to investors, so no investor interest rate applies; delinquency interest is owed to the muni
Maryland tax sales: season preview
Tax lien certificates
County-set redemption rate: 6% per year statutory default (Md. Code, Tax-Property § 14-820), with counties fixing higher rates by
Massachusetts tax sales: season preview
Redeemable tax deeds
8% per year for tax titles taken or sold on or after Nov. 1, 2024 (M.G.L. c. 60, § 62, as amended by Ch. 140 of the Acts of 2024);
Michigan tax sales: season preview
Tax deeds
n/a - Michigan is a pure tax deed state: no lien certificate is sold to a private buyer, so there is no buyer interest rate. Inter
Minnesota tax sales: season preview
Tax deeds
n/a - Minnesota sells no lien certificates to private investors; delinquent parcels are bid in for the State and later sold as tax
Mississippi tax sales: season preview
Tax lien certificates
1.5% per month (18% per year) on the taxes and costs for which the land was sold, plus 5% damages on the amount of taxes (Miss. Co
Missouri tax sales: season preview
Tax lien certificates
Interest at the rate specified in the certificate of purchase, not to exceed 10% per annum, on the purchase money up to the delinq
Montana tax sales: season preview
Tax lien certificates
10% per year (5/6 of 1% per month) plus a 2% penalty on the delinquent amount (MCA 15-16-102)
Nebraska tax sales: season preview
Tax lien certificates
14% per annum, fixed by statute (Neb. Rev. Stat. 77-1824; interest rate set by Neb. Rev. Stat. 45-104.01), simple interest accruin
New Hampshire tax sales: season preview
Tax deeds
n/a — New Hampshire does not sell tax lien certificates to investors as its standard procedure, so no investor rate applies; redem
New Jersey tax sales: season preview
Tax lien certificates
Up to 18% per year, bid down from 18% (N.J.S.A. 54:5-32); when bidding reaches 0%, bidders compete by premium instead (see notes).
New Mexico tax sales: season preview
Tax deeds
n/a — pure tax deed state; the state sells the property itself, not a lien, so there is no statutory interest or redemption premiu
New York tax sales: season preview
Tax deeds
n/a — under RPTL Article 11 the tax district holds and forecloses its own lien, so no lien certificate is sold to investors and no
North Carolina tax sales: season preview
Tax deeds
n/a — pure tax deed / foreclosure state; no lien certificate is sold to investors, so no buyer interest rate applies
Ohio tax sales: season preview
Liens + tax deeds (hybrid)
For tax lien certificates: up to 18% per annum, bid down at auction (lowest rate wins), simple interest (ORC 5721.32(C)); subseque
Oklahoma tax sales: season preview
Tax deeds
n/a — pure tax deed (resale) state; no tax lien certificate is sold to investors (certificate sale repealed in 2008), so there is
Pennsylvania tax sales: season preview
Tax deeds
n/a — under the Real Estate Tax Sale Law no lien certificate is sold and no post-sale redemption interest is paid to the buyer; in
Rhode Island tax sales: season preview
Redeemable tax deeds
Penalty of 10% of the purchase price if redeemed within the first 6 months, plus an additional 1% of the purchase price for each s
South Carolina tax sales: season preview
Redeemable tax deeds
Tiered flat interest on the bid amount by redemption timing (§ 12-51-90(B)): 3% if redeemed in months 1-3, 6% in months 4-6, 9% in
South Dakota tax sales: season preview
Tax lien certificates
Up to 10% per year, bid down — the lowest interest rate bid wins and no bid above 10% is valid (SDCL 10-23-8)
Tennessee tax sales: season preview
Redeemable tax deeds
12% per annum on the full purchase price, accruing from the date the purchaser pays the clerk until a motion to redeem is filed (T
Texas tax sales: season preview
Redeemable tax deeds
25% redemption premium in year 1, 50% in year 2 — flat premium on the aggregate (bid + deed fee + taxes/penalties/interest/costs p
Utah tax sales: season preview
Tax deeds
n/a — pure tax deed state; the county sells the property itself at public auction for at least the taxes, penalties, interest and
Vermont tax sales: season preview
Redeemable tax deeds
12% per year (1% per month or fraction thereof) on the sum for which the land was sold, from the day of sale to redemption (32 V.S
Virginia tax sales: season preview
Tax deeds
n/a — pure tax deed state; no lien certificate is sold. Delinquent taxes themselves bear locality penalty/interest owed to the loc
West Virginia tax sales: season preview
Tax lien certificates
0% to the purchaser under current law — Senate Bill 552 (effective June 10, 2022) eliminated interest on the Auditor tax-sale purc
Wisconsin tax sales: season preview
Tax deeds
n/a - Wisconsin sells no tax lien certificates to private investors; the county itself holds the tax certificate. Delinquent amoun
Wyoming tax sales: season preview
Tax lien certificates
15% per year plus a one-time 3% penalty on the day of purchase (W.S. 39-13-108; county treasurer guidance)