Iowa vs Illinois
Same underlying data as the individual state pages, side by side. Statutory rates and redemption windows only — always confirm against the county's own auction notice before bidding.
| | Iowa | Illinois |
|---|---|---|
| Sale type | Tax lien certificate | Tax lien certificate |
| Rate / penalty | 24% flat (2%/month), no bid-down | Up to 9% per 6-month period, bid down |
| Redemption | 1 year 9 months (+ 90-day notice) | 2.5–3 years (1 year for vacant/commercial) |
Both states run the same kind of sale — tax lien certificate — so the real difference between them comes down to rate and redemption, not the underlying mechanism.
Redemption windows differ: Iowa gives owners 1 year 9 months (+ 90-day notice), Illinois gives 2.5–3 years (1 year for vacant/commercial) — the state with the shorter window resolves faster, for better or worse depending on what you're optimizing for.
Iowa fixes its tax lien interest at 2% per month (24% a year) under Iowa Code § 447.1, so the rate is never bid down; bidders compete on the smallest percentage of the parcel instead (§ 446.16). After one year and nine months the holder may serve notice, and the right to redeem ends ninety days after service is complete (§ 447.9, § 447.12).
Full Iowa page →Illinois sells delinquent taxes at an annual county tax sale where bidders compete on the penalty they will accept, capped at 9% since 2022 (35 ILCS 200/21-215); the redeeming owner pays that penalty once for each six-month period that has begun, up to six (§ 21-355). Most property can be redeemed for 2½ years (one year for vacant non-farm, commercial, industrial and 7+-unit property), and three years on certificates sold on or after July 10, 2026, when HB 4537 (P.A. 104-553) replaced the direct tax deed with a court-ordered auction that returns any surplus to the former owner and let counties acquire the liens themselves (§§ 21-190, 21-350, 22-40, 22-42).
Full Illinois page →Property & tax market
| | Iowa | Illinois |
|---|---|---|
| Median home value | $208,000 | $263,300 |
| Median property tax / year | $2,897 | $5,298 |
| Tax / home value | 1.4% | 2.0% |
| Tax / household income | 3.9% | 6.4% |
| Homes owned outright | 40.6% | 39.2% |
| “Other vacant” homes | 4.0% | 3.9% |
| Median year built | 1972 | 1971 |
A typical home in Illinois pays 1.8× the property tax of one in Iowa ($5,298 against $2,897 a year). One unpaid year is roughly the face value of a one-year certificate, so a typical Illinois lien ties up about 1.8× the money of an Iowa one — and, at the same rate, earns 1.8× the dollars.
Homes owned outright — where no lender has a reason to pay the delinquent bill for the owner — are 40.6% of owner-occupied homes in Iowa and 39.2% in Illinois. The Census “other vacant” share (foreclosures, homes in legal limbo or needing repairs, abandoned homes) is 4.0% against 3.9%: about the same, so neither state's lists should carry noticeably more empty properties.
Source: U.S. Census Bureau, American Community Survey 2020-2024 5-year estimates (tables B25077, B25103, B25081, B25002, B25004, B25035, B19013). Medians of what owners report paying, not statutory rates. County-level figures are on each state page.
Quick answers
Is Iowa or Illinois a tax lien state?+
Iowa is a tax lien certificate state. Illinois is a tax lien certificate state.
Which has the higher rate, Iowa or Illinois?+
Iowa: 24% flat (2%/month), no bid-down. Illinois: Up to 9% per 6-month period, bid down. Compare the actual statutory ceiling, not just the headline number — most "up to" rates get bid down at auction.
Which redeems faster, Iowa or Illinois?+
Redemption windows differ: Iowa gives owners 1 year 9 months (+ 90-day notice), Illinois gives 2.5–3 years (1 year for vacant/commercial) — the state with the shorter window resolves faster, for better or worse depending on what you're optimizing for.
Are property taxes higher in Iowa or Illinois?+
The median homeowner pays $2,897 a year in Iowa and $5,298 in Illinois (U.S. Census Bureau, American Community Survey 2020-2024 5-year estimates). A typical home in Illinois pays 1.8× the property tax of one in Iowa ($5,298 against $2,897 a year). One unpaid year is roughly the face value of a one-year certificate, so a typical Illinois lien ties up about 1.8× the money of an Iowa one — and, at the same rate, earns 1.8× the dollars.
Want to line up more than two states, or swap in different ones? Use the interactive comparison tool — up to four states at once.
See where these two rank against all 50 states: full rankings.
This page is general information, not financial or legal advice. Rates and redemption periods are set by state statute and can change by county or legislative session — always confirm against the county's own auction notice before bidding.