State laws / New Jersey
New Jersey tax sales: liens, deeds, rates & redemption
Quick answerNew Jersey sells tax lien certificates for unpaid property taxes. Lien buyers can earn 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). Additional statutory penalties on larger certificates and interest on subsequent taxes paid are governed by §§ 54:5-32 to 54:5-34 and 54:5-58 to 54:5-60. Redemption: 2 years from the date of sale — a third-party certificate holder may not file a foreclosure complaint until 2 years after the sale (N.J.S.A. 54:5-86); redemption remains available until foreclosure judgment Sales: Each of New Jersey's 564 municipalities must hold a tax sale at least annually if it has delinquencies; dates are set municipality by municipality, year-round, with many sales in the fall Governing law: N.J.S.A. 54:5-1 et seq. (Tax Sale Law), esp. §§ 54:5-19, 54:5-32, 54:5-33, 54:5-86.
Where to bid: RealAuction (state-approved electronic tax sale vendor used by many municipalities)mostly in-person for municipalities that have not adopted electronic sales
| What is sold | Tax lien certificates |
|---|---|
| Interest / penalty | 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). Additional statutory penalties on larger certificates and interest on subsequent taxes paid are governed by §§ 54:5-32 to 54:5-34 and 54:5-58 to 54:5-60 |
| Redemption period | 2 years from the date of sale — a third-party certificate holder may not file a foreclosure complaint until 2 years after the sale (N.J.S.A. 54:5-86); redemption remains available until foreclosure judgment |
| When sales happen | Each of New Jersey's 564 municipalities must hold a tax sale at least annually if it has delinquencies; dates are set municipality by municipality, year-round, with many sales in the fall |
| Governing law | N.J.S.A. 54:5-1 et seq. (Tax Sale Law), esp. §§ 54:5-19, 54:5-32, 54:5-33, 54:5-86 |
| Investor notes | Premium bidding is central: once interest is bid to 0%, the highest premium wins, the premium earns no interest, is held by the collector, is returned to the purchaser only if redemption is made, and escheats to the municipality if there is no redemption within 5 years (§ 54:5-33). Sales are municipal, not county — there is no single statewide calendar or registration. |
Sources
- https://taxlien.io/rankings/
- https://www.nolo.com/legal-encyclopedia/what-happens-if-i-dont-pay-property-taxes-new-jersey.html
- https://law.justia.com/codes/new-jersey/title-54/section-54-5-33/
- https://www.taxsalewealth.com/new-jersey-tax-lien.html
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.