Guide
Tax lien vs. tax deed states: how every state sells delinquent property taxes
Updated Oct 31, 2026 · Built from LienDesk's statute summaries for all 51 jurisdictions
When a property owner stops paying property taxes, every state eventually lets the county sell something to collect. What you buy at that sale, and how you get paid, depends on the state. LienDesk sorts the 50 states and DC into three systems.
The three systems
Tax lien states (20)
- What you buy
- A lien (often called a tax certificate) on the property for the unpaid taxes. You don't own the property.
- How you get paid
- When the owner redeems, they repay what you paid plus the statutory interest or penalty. In many lien states bidders compete by bidding the rate down, so the rate you earn can be far below the maximum.
- The catch
- If the owner never redeems, you usually have to take further steps (a deed application or a foreclosure suit, depending on the state) before you can own the property, and the lien can be worth little if the property is.
Redeemable deed states (11)
- What you buy
- A deed to the property, but subject to the owner's right to buy it back (redeem) for a set period.
- How you get paid
- If the owner redeems, they repay your bid plus a statutory premium or penalty. If they don't, the deed becomes final once the redemption period ends and any required notices are given.
- The catch
- Until redemption runs out you generally can't treat the property as your own, and in some states the owner keeps possession during that period.
Government tax deed (no investor lien) states (20)
- What you buy
- The property itself, sold by the county or another government office after the owner's time to pay has run out.
- How you get paid
- Your return comes from what the property is worth compared with what you paid, not from interest.
- The catch
- Title may still need clearing (for example a quiet-title action), and some states require court confirmation or allow a limited redemption after the sale.
Counts include the District of Columbia. Alabama (where counties choose) and Missouri (a hybrid) are counted as lien states. Some states allow more than one method; each state page has the details.
Tax lien states
| State | Max interest / penalty | Redemption | Statute |
|---|---|---|---|
| Alabama | 12% bid down (lien auctions); 8% (tax sales) | Tax sales 3 years; lien holder may sue after 4 years | Ala. Code §40-10-184; §40-10-120; §40-10-122 |
| Arizona | 16%/yr, bid down | 3 years, then until deed (suit by year 10) | A.R.S. §42-18114; §42-18053; §42-18152 |
| Colorado | Fed discount rate + 9 points (fixed) | Until the treasurer's deed (3-year deed rule now pre-July 2024 only) | C.R.S. §39-12-103; §39-11-115 |
| District of Columbia | 1.5%/month (18%/yr), excl. surplus | Until foreclosure is final; suit after 6 months, within 1 year | D.C. Code §47-1348; §47-1370; §47-1346 |
| Florida | 18%/yr, bid down; 5% minimum unless bid 0% | Until a tax deed issues; deed application after 2 years; void after 7 | Fla. Stat. §197.172; §197.432; §197.472; §197.502 |
| Illinois | 9% per 6 months, bid down (max 18%/yr) | 3 years for certificates from July 10, 2026 (2.5 before); 1 year vacant/commercial | 35 ILCS 200/21-215; 21-350; 21-355 |
| Indiana | 110% / 115% of minimum bid; 5% on overbid | 1 year (none for vacant and abandoned) | Ind. Code §6-1.1-24-2; §6-1.1-24-5; §6-1.1-25-4 |
| Iowa | 2%/month (24%/yr), fixed | 1 year 9 months, then 90-day notice | Iowa Code §447.1; §447.9; §446.16 |
| Kentucky | 12%/yr, fixed | No fixed period; holder may sue after 1 year, within 11 | KRS 134.125; 134.128; 134.546 |
| Louisiana | 1%/month bid down to 0.7%; plus 5% penalty | Set by state constitution (3 years per 2024 digest) | La. R.S. 47:2154; 47:2127; 47:2241 |
| Maryland | 6%/yr default or county rate (Carroll 14%); max 10% owner-occupied | Until foreclosure; suit after 6 months (9 owner-occupied), within 2 years | Md. Tax-Prop. §14-820; §14-833; §14-817 |
| Missouri | 10%/yr max (none on overbid); 8% on later taxes | 1 year absolute, then until deed; 90 days for 3rd offering | RSMo §140.340; §140.250 |
| Montana | 5/6 of 1%/month (10%/yr) + 2% penalty | 3 years after the lien attaches | Mont. Code §15-16-102; §15-17-323; §15-18-111 |
| Nebraska | 14%/yr, fixed | Until holder applies for deed (window 3 years + 9 months) | Neb. Rev. Stat. §77-1824; §45-104.01; §77-1807 |
| New Hampshire | 14%/yr on the recorded lien | 2 years, then tax deed to the lienholder | N.H. Rev. Stat. §80:69; §80:76; §80:80 |
| New Jersey | 18%/yr bid down, then premium | Until foreclosure judgment; suit after 2 years | N.J.S.A. 54:5-32; 54:5-86 |
| Ohio | 18%/yr, bid down | Until foreclosure starts; certificate period 3-6 years | Ohio Rev. Code §5721.32; §5721.38 |
| South Dakota | 10%/yr, bid down | Holder may start deed process after 3 years (within 6) | SDCL 10-23-8; 10-25-1 |
| West Virginia | 1%/month (12%/yr) on taxes due | Until the tax deed; buyer must act within 120 days | W. Va. Code §11A-3-56; §11A-3-45 |
| Wyoming | 3% + 15%/yr | Until deed application accepted (deed 4-6 years) | Wyo. Stat. §39-13-109; §39-13-108 |
Redeemable deed states
| State | Max interest / penalty | Redemption | Statute |
|---|---|---|---|
| Connecticut | 18%/yr on price | 6 months (60 days if abandoned) | Conn. Gen. Stat. §12-157 |
| Delaware | 15% flat (20% under Kent/Sussex rule) | 60 days after court approval (1 year Kent/Sussex rule) | 9 Del. C. §8729; §8781 |
| Georgia | 20% first year, +10% each later year | 12 months, then until notice of foreclosure | O.C.G.A. §48-4-40; §48-4-42 |
| Hawaii | 12%/yr on the price | 1 year from the sale | Kauai County Code §5A-5.6; Rev. Ord. Honolulu §§8-5.1 to 8-5.9 |
| Massachusetts | 8%/yr (town-held titles) | Until foreclosure petition; petition after 12 months | M.G.L. c. 60, §52; §62; §65 |
| Mississippi | 1.5%/month + 5% damages | 2 years | Miss. Code §27-45-3; §27-41-59 |
| Rhode Island | 10% within 6 months, +1% of price per month | Until foreclosure petition; petition after 1 year | R.I. Gen. Laws §44-9-19; §44-9-8 |
| South Carolina | 3%, 6%, 9%, 12% of bid by quarter | 12 months | S.C. Code §12-51-90; §12-51-50 |
| Tennessee | 12%/yr on price | Up to 1 year (90-180 days for long delinquencies) | Tenn. Code §67-5-2701 |
| Texas | 25% year 1, 50% year 2 (homestead/ag); max 25% other | 2 years (homestead/ag); 180 days other | Tex. Tax Code §34.21; §34.01 |
| Vermont | 1%/month (12%/yr) | 1 year | 32 V.S.A. §5260; §5252 |
Government tax deed sale states
| State | Investor rate | Redemption | Statute |
|---|---|---|---|
| Alaska | n/a (no investor lien) | At least 1 year after foreclosure | AS 29.45.400; 29.45.460 |
| Arkansas | n/a (no investor lien) | Until the day before the state sale | Ark. Code §26-37-101; §26-37-202 |
| California | n/a (no investor lien) | Until the business day before the sale | Cal. Rev. & Tax. Code §3691; §3707 |
| Idaho | n/a (no investor lien) | 3 years before county deed; then up to 14 months | Idaho Code §63-1005; §63-1007 |
| Kansas | n/a (no investor lien) | 2 years after county bid-in, then until sheriff's sale | K.S.A. 79-2401a; 79-2804 |
| Maine | n/a (no investor lien) | 18 months after lien recorded | 36 M.R.S. §943; §943-C |
| Michigan | n/a (no investor lien) | Until foreclosure judgment vests title | MCL 211.78m |
| Minnesota | n/a (no investor lien) | 3 years (1 year in targeted communities) | Minn. Stat. §281.17; §282.005 |
| Nevada | n/a (no investor lien) | 2 years (1 if abandoned) | NRS 361.570; 361.595 |
| New Mexico | n/a (no investor lien) | Until the day before the sale | NMSA §7-38-65; §7-38-67 |
| New York | n/a (no investor lien) | 2 years after lien date | N.Y. RPTL §1110; §1196 |
| North Carolina | n/a (no investor lien) | Until the sale is confirmed | N.C.G.S. §105-374 |
| North Dakota | n/a (no investor lien) | Until Oct. 1 foreclosure date (2+ years delinquent) | N.D.C.C. §57-28-02; §57-28-10 |
| Oklahoma | n/a (no investor lien) | Until the resale auction starts | 68 O.S. §3113; §3129 |
| Oregon | n/a (no investor lien) | 2 years after foreclosure judgment | ORS 312.120; 312.010 |
| Pennsylvania | n/a (no investor lien) | Pay before July 1 after notice of claim, or before sale | 72 P.S. §5860.501; §5860.605 |
| Utah | n/a (no investor lien) | Until the May/June tax sale (4+ years) | Utah Code §59-2-1346; §59-2-1351.1 |
| Virginia | n/a (no investor lien) | Until the judicial sale date | Va. Code §58.1-3974; §58.1-3967 |
| Washington | n/a (no investor lien) | Until the day of sale (3 years delinquent) | RCW 84.64.060; 84.64.080 |
| Wisconsin | n/a (no investor lien) | In rem filing 2 years after the certificate | Wis. Stat. §75.521; §75.36 |
Recent law changes
In Tyler v. Hennepin County, 598 U.S. 631 (2023), the U.S. Supreme Court held unanimously that a county which sold a home for more than the tax debt and kept the surplus had taken property without just compensation. Several states have since changed how surplus proceeds are handled, and others have changed rates, redemption periods or how deeds issue. The changes in our data:
- Arizona · Laws 2026 ch. 256, June 22, 2026
Court-ordered excess proceeds sale when property likely sells for more than $2,500 above the debt; owner gets remaining proceeds.
- Colorado · HB 24-1056, signed May 10, 2024
Automatic treasurer's deed to certificate holder now applies only before July 1, 2024.
- Illinois · Public Act 104-0553, July 10, 2026
Judicial tax deed auctions, surplus equity fund funded by buyer fees; 3-year redemption for new certificates.
- Maine · PL 2023 c. 640
All tax-acquired property sold through a broker; former owner paid proceeds above taxes and costs.
- Minnesota · 2024, Laws 2024 ch. 127
Public auction first; interested parties can claim surplus within 6 months of notice.
- New Jersey · P.L.2024 c.39, July 10, 2024
Owner can demand a sheriff's sale or internet auction before final judgment; surplus deposited with the court.
- South Dakota · Effective Feb 12, 2024
A private certificate holder that takes a tax deed must auction within 1 year and keeps only the redemption amount; surplus to prior owner.
Which system fits you?
- If you want a paper return and are happy never to own the property, lien states are built for that, but competitive bidding often pushes the rate well below the maximum.
- If you want the property, government-sale states sell it outright; budget for title work before you can resell or finance it.
- Redeemable deed states sit in between: a statutory premium if the owner redeems, the property if they don't.
- Whatever the system, the county's own rules (registration, deposits, payment deadlines) decide whether you can bid at all. Check the sale page well before the date.
Next: How Georgia tax sales work · Upcoming tax sales
State summaries come from LienDesk's reading of each state's statutes and are marked pending verification until independently reviewed. Read the current statute before relying on a rate or deadline.
Not legal advice. LienDesk is a research tool. This page summarizes public records and statutes for general education; it is not legal, tax or investment advice. Laws, dates and terms change, so confirm everything with the county, the trustee or sheriff running the sale, and a licensed attorney before you bid.