Investing guides / Colorado

Colorado tax sale investing: buy the tax debt, earn the rate

Quick answerColorado sells tax lien certificates for unpaid property taxes. Lien buyers can earn Federal discount rate (Federal Reserve Bank of Kansas City) in effect Sept. 1 plus 9 percentage points, rounded to the nearest whole percent, set Oct. 1 and fixed for the life of the certificate (C.R.S. §39-12-103) — e.g. 14% for certificates in the Oct. 1, 2025-Sept. 30, 2026 period, 13% announced for the 2026 El Paso County sale. Interest accrues only on taxes/subsequent taxes, not on any premium bid. Redemption: Owner may redeem at any time before issuance of a treasurer's deed / completion of the treasurer's deed public auction; the lienholder may apply for that auction no sooner than 3 years from the date of the tax lien sale (C.R.S. §§39-12-103, 39-11.5-102) Sales: Annual county treasurer tax lien sales in the fall, typically October-November (most counties in November) Governing law: Colorado Revised Statutes Title 39, Articles 11 and 12 (§§39-11-101 et seq., 39-12-103) and Article 11.5 (§§39-11.5-101 et seq.) for treasurer's deed auctions.

How it works in Colorado

In Colorado you are not buying property at the sale — you are buying the county's tax lien certificate for the amount of taxes owed, and the owner owes you interest until they redeem.

Interest / penalty: Federal discount rate (Federal Reserve Bank of Kansas City) in effect Sept. 1 plus 9 percentage points, rounded to the nearest whole percent, set Oct. 1 and fixed for the life of the certificate (C.R.S. §39-12-103) — e.g. 14% for certificates in the Oct. 1, 2025-Sept. 30, 2026 period, 13% announced for the 2026 El Paso County sale. Interest accrues only on taxes/subsequent taxes, not on any premium bid

Redemption: Owner may redeem at any time before issuance of a treasurer's deed / completion of the treasurer's deed public auction; the lienholder may apply for that auction no sooner than 3 years from the date of the tax lien sale (C.R.S. §§39-12-103, 39-11.5-102)

When sales happen: Annual county treasurer tax lien sales in the fall, typically October-November (most counties in November)

Where sales run: Online via RealAuction, GovEase, SRI Inc., and Zeus Auction depending on the county; some counties still hold in-person sales — see the Colorado County Treasurers' association sale list for the county-by-county split

Governing law: Colorado Revised Statutes Title 39, Articles 11 and 12 (§§39-11-101 et seq., 39-12-103) and Article 11.5 (§§39-11.5-101 et seq.) for treasurer's deed auctions

The investor's edge

Your edge is rate discipline: know the statutory maximum, know what the sale historically bids down to in your target counties, and set a floor rate you will not cross before the sale starts.

Premium bidding: the winning premium over the lien amount is not refunded on redemption and earns no interest, so effective yield is below the headline rate. HB 24-1056 (eff. July 1, 2024) replaced automatic issuance of a treasurer's deed with a public auction of a certificate of option for treasurer's deed, so surplus value can return to the former owner.

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Full legal reference: Colorado tax sale laws. Verified 2026-10-30 against the sources on that page. Educational only, not investment advice.