Investing guides / District of Columbia

District of Columbia tax sale investing: buy the tax debt, earn the rate

Quick answerDistrict of Columbia sells tax lien certificates for unpaid property taxes. Lien buyers can earn 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, 47-1361). Redemption: Owner may redeem at any time until the foreclosure judgment is final; the purchaser may file to foreclose the right of redemption after 6 months from the sale and must do so within 1 year or the certificate is void (§§ 47-1360, 47-1370) — commonly described as a 6-month redemption period Sales: Annual real property tax sale, typically in July (the 2026 sale was postponed from July 15 to Aug. 19, 2026) Governing law: D.C. Code §§ 47-1330–47-1385 (real property tax sales), esp. §§ 47-1360, 47-1361, 47-1370; older provisions at §§ 47-1304, 47-1306.

How it works in District of Columbia

In District of Columbia 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: 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, 47-1361)

Redemption: Owner may redeem at any time until the foreclosure judgment is final; the purchaser may file to foreclose the right of redemption after 6 months from the sale and must do so within 1 year or the certificate is void (§§ 47-1360, 47-1370) — commonly described as a 6-month redemption period

When sales happen: Annual real property tax sale, typically in July (the 2026 sale was postponed from July 15 to Aug. 19, 2026)

Where sales run: mostly in-person — Office of Tax and Revenue sale at 1101 4th St. SW, Washington, DC, with registration through MyTax.DC.gov, MyTax.DC.gov (over-the-counter sale of bid-off liens after the annual sale)

Governing law: D.C. Code §§ 47-1330–47-1385 (real property tax sales), esp. §§ 47-1360, 47-1361, 47-1370; older provisions at §§ 47-1304, 47-1306

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.

Correction to a common description: DC is a tax lien jurisdiction, not a redeemable deed jurisdiction — the buyer receives a certificate of sale, not a deed, bidding is premium bid-up, and interest is earned only on the certificate amount exclusive of any surplus/premium paid. A deed issues only after Superior Court foreclosure of the right of redemption.

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