Reference
Tax lien vs tax deed states
Short answer: a tax lien is a debt you buy that pays interest if the owner catches up. A tax deed is the property itself, transferred to the winning bidder. 20 states and DC sell liens, 22 sell deeds, and 7 sell redeemable deeds, which are deeds the former owner can still buy back inside a statutory window. In New York, Ohio the format is set county by county. The full table is below.
Lien states
20
You buy a certificate that pays statutory interest on redemption.
Deed states
22
A winning bid transfers ownership of the property.
Redeemable deed states
7
You take a deed, the former owner can buy it back at a penalty.
Tax deed states
Alaska, Arkansas, California, Delaware, Hawaii, Idaho, Kansas, Maine, Michigan, Minnesota, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Utah, Virginia, Washington, Wisconsin
Tax lien states
Alabama, Arizona, Colorado, District of Columbia, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Jersey, South Carolina, South Dakota, West Virginia, Wyoming
Redeemable deed states
Connecticut, Georgia, Louisiana, Rhode Island, Tennessee, Texas, Vermont
No post-sale foreclosure redemption
Alaska, Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Louisiana, Massachusetts, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington, West Virginia
All 50 states and DC compared
Tax sale system, rate and cadence, owner redemption, foreclosure path and typical timeline. Click a state for its county lists.
| State | Sale type | Rate and cadence | Owner redemption | Foreclosure | Timeline |
|---|---|---|---|---|---|
| Alabama | lien | County tax lien auctions at up to 12% interest with a 3 year redemption period. | Yes: up to 1 year after the sale (180 days for many homesteads). | Non-judicial | 1 to 3 months |
| Alaska | deed | Boroughs foreclose delinquent taxes and sell tax-foreclosed property at public auction. | None after a non-judicial trustee sale. | Non-judicial | 3 to 4 months |
| Arizona | lien | February online tax lien sales at up to 16%, with a 3 year redemption before a lien holder can foreclose. | None after a trustee sale. | Non-judicial | 3 to 4 months |
| Arkansas | deed | The Commissioner of State Lands auctions tax-delinquent parcels after county certification. | None after a non-judicial sale; limited in judicial cases. | Both | 3 to 5 months |
| California | deed | County tax-defaulted land auctions after five years of delinquency, often online. | None after a trustee sale. | Non-judicial | 4 to 6 months |
| Colorado | lien | Annual fall tax lien sales at the federal discount rate plus nine points, with a 3 year redemption before a treasurer's deed. | None for owners after the sale; junior lienholders get short windows. | Non-judicial | 4 to 6 months |
| Connecticut | redeemable deed | Municipal tax sales carry an 18% rate and a 6 month redemption period. | Handled through court-set law days rather than a post-sale window. | Judicial | 6 to 12 months |
| Delaware | deed | County sheriff tax sales; a short statutory redemption window applies in some counties, so verify locally. | None once the court confirms the sheriff sale. | Judicial | 6 to 9 months |
| District of Columbia | lien | An annual July tax lien sale around 18% per year, with a 6 month redemption before foreclosure. | None after the sale. | Non-judicial | 4 to 8 months |
| Florida | lien | June tax certificate sales bid down from 18%, and a tax deed application follows after 2 years unpaid. | Owners can redeem up to the certificate of sale, not after. | Judicial | 8 to 14 months |
| Georgia | redeemable deed | First-Tuesday courthouse sales; tax deeds carry a 20% premium and a 1 year owner redemption. | None after a mortgage foreclosure sale. | Non-judicial | 1 to 2 months |
| Hawaii | deed | County real property tax auctions; a 1 year redemption applies after the tax sale. | None once the court confirms the sale. | Judicial | 12 to 24 months |
| Idaho | deed | Counties take tax deeds after 3 years of delinquency and auction the parcels. | None after a trustee sale. | Non-judicial | 4 to 6 months |
| Illinois | lien | Annual tax sales use penalty-rate bidding with a 2 to 3 year owner redemption before a tax deed. | Yes, but BEFORE the sale: generally 7 months from service for homeowners. | Judicial | 9 to 15 months |
| Indiana | lien | Fall county tax sales issue certificates with roughly 10 to 15% returns and a 1 year redemption. | Only before the sheriff sale. | Judicial | 5 to 9 months |
| Iowa | lien | Third-Monday-of-June tax sales at 2% per month (24% per year) with a redemption period of about 21 months. | Yes, typically 6 to 12 months; lenders often waive deficiency to shorten it. | Judicial | 5 to 12 months |
| Kansas | deed | Counties foreclose tax-delinquent parcels judicially and sell them free of redemption at auction. | Yes: 3 to 12 months after the sale depending on equity. | Judicial | 4 to 8 months |
| Kentucky | lien | County clerk certificate of delinquency sales at 12% with an extended redemption before foreclosure. | 6 months, but only if the property sells for less than two thirds of appraised value. | Judicial | 5 to 9 months |
| Louisiana | redeemable deed | Parish tax sales convey tax sale title with a 5% penalty plus 1% per month and a 3 year redemption. | None after the sheriff sale. | Judicial | 2 to 6 months |
| Maine | deed | Municipal tax lien mortgages mature into town-owned deeds after an 18 month redemption. | A 90 day redemption runs during the process rather than after the sale. | Judicial | 6 to 12 months |
| Maryland | lien | Spring county tax lien sales at county-set rates (commonly 6 to 24%) with at least a 6 month redemption. | Owners can redeem until the court ratifies the sale. | Non-judicial | 4 to 7 months |
| Massachusetts | lien | Municipal tax takings accrue 16%, and the town forecloses the redemption right in Land Court. | None after the foreclosure sale. | Non-judicial | 3 to 6 months |
| Michigan | deed | Counties take absolute title through tax forfeiture after roughly 3 years, then auction deeds in late summer and fall. | Yes: 6 months after the sale for most homes (1 year for agricultural or low-balance cases). | Non-judicial | 2 to 3 months to sale |
| Minnesota | deed | Tax-forfeited land vests in the state and counties sell it at periodic auctions. | Yes: 6 months after the sale for most homes, 12 in some cases. | Non-judicial | 2 to 4 months to sale |
| Mississippi | lien | Late-August tax lien sales at 1.5% per month (18% per year) with a 2 year redemption. | None after the trustee sale. | Non-judicial | 2 to 3 months |
| Missouri | lien | Fourth-Monday-of-August county sales with roughly 10% returns and a 1 year redemption. | Only if the lender wins the bid and the owner posts bond within statutory deadlines; rare in practice. | Non-judicial | 2 to 3 months |
| Montana | lien | County tax lien certificates with a multi-year redemption before a tax deed can issue. | None after a trustee sale. | Non-judicial | 5 to 6 months |
| Nebraska | lien | First-Monday-of-March county sales at 14% with a 3 year redemption. | None after a trustee sale; short windows in judicial cases. | Both | 3 to 6 months |
| Nevada | deed | County treasurer deed auctions after roughly 3 years of delinquency. | None after a trustee sale. | Non-judicial | 4 to 6 months |
| New Hampshire | deed | Municipal tax deeds issue after about a 2 year lien and redemption cycle. | None after the sale. | Non-judicial | 2 to 4 months |
| New Jersey | lien | Annual municipal tax lien sales at up to 18% plus premiums, with foreclosure possible after 2 years. | 10 days after the sheriff sale. | Judicial | 12 to 24 months |
| New Mexico | deed | The state Property Tax Division auctions delinquent parcels; sales are final with narrow challenge windows. | 1 to 9 months after the sale; contracts commonly shorten it to 1. | Judicial | 6 to 12 months |
| New York | varies | New York City sells tax liens; most upstate counties foreclose and auction deeds. | None after the auction; owners can redeem any time before it. | Judicial | 15 to 30+ months |
| North Carolina | deed | County tax foreclosures sell deeds, also subject to 10 day upset bids. | A 10 day upset-bid period follows every sale instead of redemption. | Non-judicial | 3 to 5 months |
| North Dakota | deed | Counties take tax deeds and hold annual November auctions; owners can redeem before the sale. | 60 days after the sale. | Judicial | 4 to 8 months |
| Ohio | varies | Large counties sell tax lien certificates around 18%; sheriff tax foreclosure deed sales run everywhere. | Until the court confirms the sale, not after. | Judicial | 6 to 12 months |
| Oklahoma | deed | Counties hold June resale auctions conveying deeds for long-delinquent parcels. | None after confirmation. | Both | 4 to 7 months |
| Oregon | deed | Counties foreclose after 3 years of delinquency and auction surplus property. | None after a trustee sale. | Non-judicial | 4 to 6 months |
| Pennsylvania | deed | September Upset Sales convey deeds subject to liens; later Judicial Sales wipe them clear. | None for mortgage sales (limited local exceptions exist for tax sales). | Judicial | 9 to 15 months |
| Rhode Island | redeemable deed | Municipal tax sales carry roughly a 1 year redemption with statutory penalties. | None after the sale. | Non-judicial | 2 to 4 months |
| South Carolina | lien | Fall county tax sales return 3 to 12% by redemption quarter with a 1 year owner redemption. | None; a deficiency demand opens a 30 day upset-bid window instead. | Judicial | 5 to 9 months |
| South Dakota | lien | Counties hold tax certificates with multi-year redemption before deeds issue. | Typically 180 days after the sale (60 for abandoned homes). | Judicial | 4 to 9 months |
| Tennessee | redeemable deed | County tax sales convey deeds subject to a redemption of up to 1 year at 12%. | A 2 year right exists on paper but is waived in nearly every deed of trust. | Non-judicial | 2 to 3 months |
| Texas | redeemable deed | First-Tuesday county sales; tax deeds carry a 25% first-period penalty with 180 day (2 year homestead) redemption. | None for mortgage foreclosures. | Non-judicial | about 2 months |
| Utah | deed | May county tax sales auction deeds, often via undivided-interest bidding. | None after a trustee sale. | Non-judicial | 4 to 5 months |
| Vermont | redeemable deed | Municipal tax sales carry a 1 year redemption at 12%. | 6 months by default, and courts commonly shorten it. | Judicial | 7 to 12 months |
| Virginia | deed | Judicial tax sales auction deeds for long-delinquent parcels; localities also use nonjudicial sales for low-value lots. | None after the trustee sale. | Non-judicial | 2 to 3 months |
| Washington | deed | County treasurers auction tax deeds, typically each December, after 3 years of delinquency. | None after a trustee sale. | Non-judicial | 5 to 7 months |
| West Virginia | lien | State-run delinquent land sales issue certificates with roughly an 18 month redemption. | None after the trustee sale. | Non-judicial | 2 to 4 months |
| Wisconsin | deed | Counties take tax deeds in rem and sell surplus parcels; there is no certificate market. | Runs BEFORE the sale: usually 6 months (shorter if the lender waives deficiency). | Judicial | 8 to 14 months |
| Wyoming | lien | Summer county tax lien sales with 15% returns and a multi-year redemption before deeds. | 3 months for owners after the sale, plus short lienholder windows. | Non-judicial | 2 to 4 months |
Summary at the state level. Counties apply these rules with their own schedules, deposits and bidding formats, and statutes change. Verify with the county before you bid.
Judicial vs non-judicial foreclosure
Judicial (21)
Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Vermont, Wisconsin
Non-judicial (27)
Alabama, Alaska, Arizona, California, Colorado, District of Columbia, Georgia, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, North Carolina, Oregon, Rhode Island, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wyoming
Both (3)
Arkansas, Nebraska, Oklahoma
The practical difference for a buyer is time. A non-judicial state can move from first notice to auction in a couple of months, so the window to reach an owner is short and speed wins. A judicial state can take a year or more, which keeps pre-foreclosure inventory deep and gives you room to work a seller patiently. Neither is better to invest in, they just reward different habits.
Tax lien and tax deed FAQ
What is the difference between a tax lien and a tax deed?
A tax lien is a debt. You pay the county the back taxes, you get a certificate, and if the owner redeems you get your money back plus interest. If they never redeem you can foreclose and take the property. A tax deed is the property. A winning bid at a deed sale transfers ownership directly. Liens are a fixed-income trade with an ownership option attached, deeds are a real estate purchase at auction. 20 states and DC sell liens, 22 sell deeds, and 7 sell redeemable deeds, which are deeds the former owner can still buy back.
What are the tax deed states?
The tax deed states are Alaska, Arkansas, California, Delaware, Hawaii, Idaho, Kansas, Maine, Michigan, Minnesota, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Utah, Virginia, Washington, Wisconsin. In these states a winning bid at the county tax sale transfers ownership of the property rather than a certificate. Separately, Connecticut, Georgia, Louisiana, Rhode Island, Tennessee, Texas, Vermont sell redeemable deeds, where you take a deed but the former owner has a statutory window to buy it back at a penalty.
What are the tax lien states?
The tax lien states are Alabama, Arizona, Colorado, District of Columbia, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Jersey, South Carolina, South Dakota, West Virginia, Wyoming. In these states the county sells a certificate representing the unpaid tax debt, and the buyer earns statutory interest if the owner redeems. Rates and redemption periods vary widely, from around 8% to 24% a year, and redemption windows run from six months to several years.
Which states have no redemption period after a foreclosure sale?
These states give the homeowner no post-sale redemption window after a foreclosure sale: Alaska, Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Louisiana, Massachusetts, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington, West Virginia. That means the auction is final and the buyer takes possession without waiting. Note that this is foreclosure redemption, which is separate from tax sale redemption: a state can be final at foreclosure and still give a long redemption after a tax lien sale.
Which states have judicial foreclosure?
21 states use judicial foreclosure, where a lender must sue in court to foreclose: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Vermont, Wisconsin. 27 states are primarily non-judicial, using a power-of-sale clause without a lawsuit, and 3 allow both: Arkansas, Nebraska, Oklahoma. Judicial states run far longer, which is why their pre-foreclosure inventories stay deep for months.
Which states pay the highest tax lien interest rates?
Rates are set by statute and several states sit at the top of the range. Iowa runs 2% per month, which is 24% a year. Florida certificates start at 18% and bid down. Arizona caps at 16% and also bids down. Maryland counties set their own rates, commonly in a 6 to 24% band. New Jersey runs up to 18% plus premium bidding. The headline rate is not the return, though: competitive bidding, premiums and short redemptions all cut into it.
Is Texas a tax deed state?
Texas sells redeemable deeds rather than plain deeds or liens. A winning bidder at a Texas tax sale takes a deed, but the former owner keeps a statutory right to redeem by paying a penalty, and the window is longer for homestead and agricultural property than for other property types. So you can end up owning the house, or you can end up with a penalty-rate return if they redeem.
Is Georgia a tax deed state?
Georgia sells redeemable tax deeds. The county holds first-Tuesday courthouse sales, the winning bidder receives a tax deed, and the former owner has one year to redeem by paying the bid plus a 20% premium. After that year the deed holder can move to foreclose the right of redemption and take clear title.
Does the sale type change how I should buy?
Yes, completely. In a lien state your money is tied up earning statutory interest and you rarely see the inside of the house, so it is a yield play. In a deed state you are buying real estate at auction, usually without an inspection and sometimes with surviving liens. The third option, and the reason this site exists, is to skip the auction and buy from the delinquent owner directly during the months before the sale, when you can inspect, run title, and negotiate one on one.
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Or skip the auction entirely.
Lien or deed, the best price is months before the sale, one on one with an owner who still has a choice. Scan your county free and see who that is today.
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