State laws / Illinois
Illinois tax sales: liens, deeds, rates & redemption
Quick answerIllinois sells tax lien certificates for unpaid property taxes. Lien buyers can earn Penalty bid down from a statutory maximum of 9% per 6-month period (18% annualized); the winning (lowest) penalty percentage is applied to the certificate amount at sale and again every 6 months thereafter (35 ILCS 200/21-215, as reduced from 18% per 6-month period by P.A. 102-0363; 35 ILCS 200/21-355). Subsequent taxes paid by the buyer earn 12% per year.. Redemption: Generally 2.5 years from the date of sale; 1 year for vacant non-farm property, commercial or industrial property, and property with a structure of 7 or more residential units (certificates issued on or after January 1, 2024, per 35 ILCS 200/21-350 as amended by the 103rd General Assembly). The certificate holder may extend the period, up to a maximum of 3 years (35 ILCS 200/21-385). Sales: Annual tax sale held by each county collector, typically in the fall (roughly October-December; Cook County's annual sale for tax year 2023 was scheduled December 15, 2026). A separate biennial scavenger sale covers parcels delinquent over multiple years in Cook County. Governing law: Illinois Property Tax Code, 35 ILCS 200/21 (esp. 21-215 penalty bids, 21-350 redemption, 21-355 amount of redemption) and 35 ILCS 200/22 (tax deeds).
Where to bid: Cook County: RealAuction via cooktaxsale.com. Most other counties: county-run automated bidding systems, historically in-person at the collector's office (bidders are generally required to attend under 35 ILCS 200/21-205); no single statewide platform.
| What is sold | Tax lien certificates |
|---|---|
| Interest / penalty | Penalty bid down from a statutory maximum of 9% per 6-month period (18% annualized); the winning (lowest) penalty percentage is applied to the certificate amount at sale and again every 6 months thereafter (35 ILCS 200/21-215, as reduced from 18% per 6-month period by P.A. 102-0363; 35 ILCS 200/21-355). Subsequent taxes paid by the buyer earn 12% per year. |
| Redemption period | Generally 2.5 years from the date of sale; 1 year for vacant non-farm property, commercial or industrial property, and property with a structure of 7 or more residential units (certificates issued on or after January 1, 2024, per 35 ILCS 200/21-350 as amended by the 103rd General Assembly). The certificate holder may extend the period, up to a maximum of 3 years (35 ILCS 200/21-385). |
| When sales happen | Annual tax sale held by each county collector, typically in the fall (roughly October-December; Cook County's annual sale for tax year 2023 was scheduled December 15, 2026). A separate biennial scavenger sale covers parcels delinquent over multiple years in Cook County. |
| Governing law | Illinois Property Tax Code, 35 ILCS 200/21 (esp. 21-215 penalty bids, 21-350 redemption, 21-355 amount of redemption) and 35 ILCS 200/22 (tax deeds) |
| Investor notes | High sale-in-error risk: a buyer whose sale is declared in error gets a refund but generally no penalty, and strict statutory notice deadlines govern the later tax-deed petition. Many older secondary sources still cite the pre-2022 maximum of 18% per 6 months and the pre-2024 2-year period for non-residential property; both are superseded. |
Sources
- https://www.ilga.gov/Legislation/PublicActs/PrinterFriendly/102-0363
- https://www.dupagecounty.gov/elected_officials/county_clerk/Property_Tax_Information/Tax_Redemptions/tax_redemption_process.php
- https://legalclarity.org/illinois-tax-deed-process-and-redemption-rights-overview/
- https://taxlien.io/rankings/
- https://taxliensimple.com/auctions/online
Law verified 2026-10-30 against the sources above. Confirm current details with the county tax collector / clerk before bidding — counties can change dates and procedures.