Indiana's Tax Sale Surplus Fund: Three Years, Then the County Keeps It
Indiana sells tax sale certificates with a fixed premium rather than a simple interest rate. If the owner redeems, the buyer gets 10% of the minimum bid within six months of the sale or 15% after that, plus 5% a year on anything bid above the minimum (IC 6-1.1-25-2). Property owners have one year to redeem (as little as 120 days for certain parcels). When a winning bid is more than the taxes, penalties and costs owed, the county treasurer puts the excess into a separate tax sale surplus fund (IC 6-1.1-24-7(a)).
Two county offices, not one
Indiana splits the process across two offices in a way worth understanding before you file anything: the county treasurer conducts the tax sale, with the county auditor acting as clerk (IC 6-1.1-24-5), and the treasurer applies each winning bid first to the taxes, penalties and costs in the minimum bid, then to other delinquent property taxes, and puts the rest in the surplus fund. Under Indiana Code § 6-1.1-24-7, once a verified claim is filed and approved by both the county auditor and the county treasurer, the auditor issues a warrant — effectively a check — to the claimant for the amount due. A parallel rule covers county-held certificates resold at a later certificate sale (IC 6-1.1-24-6.4).
Who can claim
Two people can file a verified claim: the owner of record when the property was certified for sale, and the tax sale buyer (or the buyer's assignee) once the property is redeemed (IC 6-1.1-24-7(c)). The money in the fund comes from the buyer's overbid. An owner who redeems pays the buyer 5% a year on the overbid, not the overbid itself, so on a redemption it's the buyer who claims the surplus back. If nobody redeems and a tax deed issues, the claim is the former owner's. The treasurer can also use the surplus held in the owner's name to pay the parcel's later taxes; outside counties with a consolidated city, that's required for taxes through the year the owner loses title (IC 6-1.1-24-7(b)).
If someone else claims for the owner — a finder or recovery firm with a contract, or an executor, attorney-in-fact or guardian — the auditor can pay only as the court that handled the tax sale directs, on a petition filed within three years after the date of the sale (IC 6-1.1-24-7(d)–(e)). A finder's fee is capped at 10% of the amount collected, and the agreement must be in writing and signed by the owner (IC 6-1.1-24-7.5).
The clock: three years, then it's gone
Money sitting in the tax sale surplus fund has to be transferred by the county auditor to the county general fund — and becomes non-disbursable — if it isn't claimed within three years of the date it was received, unless the redemption period was extended in a federal bankruptcy (IC 6-1.1-24-7(f)).
What this means if you're researching an Indiana property
Because the surplus sits in a named, dedicated fund at the county level rather than a general court registry, it's usually more straightforward to confirm with the county auditor's or treasurer's office whether a specific sale generated a surplus and how much — worth a direct call or records request before assuming a claim is even possible.
Looking for a list? Our directory doesn't have an official Indiana county list yet, so for now ask the office that ran the sale. The counties that do publish one are in our directory of official surplus funds lists.
This article is general information, not financial or legal advice. Confirm current claim procedures with the auditor and treasurer of the county that held the specific tax sale — practice can vary by county. See our broader guide on surplus funds after a tax sale and the Indiana state page for certificate and redemption mechanics.