Investing guides / Maryland

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

Quick answerMaryland sells tax lien certificates for unpaid property taxes. Lien buyers can earn County-set redemption rate: 6% per year statutory default (Md. Code, Tax-Property § 14-820), with counties fixing higher rates by local law — e.g. 20% in Montgomery and Prince George's counties and 18% in Baltimore City; for owner-occupied residential property the rate may not exceed 10% per year (§ 14-820(c)). Redemption: Owner may redeem until a court forecloses the right of redemption; the certificate holder may file to foreclose after 6 months from the sale (9 months for owner-occupied property) and the certificate is void if foreclosure is not filed within 2 years (§§ 14-820, 14-833) Sales: Annual sale in each of the 23 counties and Baltimore City, mostly in May–June (2026 State schedule runs March–August, with Baltimore County in late August) Governing law: Md. Code Ann., Tax-Property Article, Title 14, Subtitle 8 (esp. §§ 14-817, 14-820, 14-828, 14-833).

How it works in Maryland

In Maryland 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: County-set redemption rate: 6% per year statutory default (Md. Code, Tax-Property § 14-820), with counties fixing higher rates by local law — e.g. 20% in Montgomery and Prince George's counties and 18% in Baltimore City; for owner-occupied residential property the rate may not exceed 10% per year (§ 14-820(c))

Redemption: Owner may redeem until a court forecloses the right of redemption; the certificate holder may file to foreclose after 6 months from the sale (9 months for owner-occupied property) and the certificate is void if foreclosure is not filed within 2 years (§§ 14-820, 14-833)

When sales happen: Annual sale in each of the 23 counties and Baltimore City, mostly in May–June (2026 State schedule runs March–August, with Baltimore County in late August)

Where sales run: RealAuction / county MarylandTaxSale portals (e.g. Carroll, Cecil and Prince George's counties), Bid4Assets (some counties), BidBaltimore (Baltimore City's own online sale)

Governing law: Md. Code Ann., Tax-Property Article, Title 14, Subtitle 8 (esp. §§ 14-817, 14-820, 14-828, 14-833)

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.

Bidding is high-bid premium on price, not bid-down on rate — the rate is fixed by the county, and a high-bid premium is charged on bids above 40% of full cash value, with no interest earned on the premium portion. Older directories quoting up to 24% (e.g. for Baltimore City / Prince George's) conflict with the current § 14-820 text and the 2025 owner-occupied 10% cap and were not used for the headline rate.

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