Tax lien interest rates by state, ranked
Of the 50 states and D.C. on this page, 19 sell tax lien certificates, 10 sell a deed the owner can still buy back, 19 sell the property outright, and in 3 the town keeps the lien. Every figure comes from the same statute-checked data as the state pages, checked between September 30, 2026 and October 8, 2026.
Read the rate column for what it is. A fixed rate is what you earn if the owner redeems. A ceiling is where bidding starts, and competition drives it down. And where bidders push the price up instead, the extra you pay usually earns nothing. To see what a given rate actually pays once minimums, penalties and premiums are applied, use the tax lien interest calculator.
Highest rates a year
Lien certificates and redeemable deeds that pay by the year, highest first. Illinois counts as 18% because its penalty is 9% per six-month period. Maryland's 20% is what Montgomery and Prince George's counties charge; the state default is 6%, and no county may charge more than 10% on an owner-occupied home.
Iowa · 24% a year
24% flat (2%/month), no bid-down
Fixed by statute2
Maryland · 20% a year
6% default, set by each county (20% in Montgomery and Prince George's); price bidding, not rate
Set by each county3
Connecticut · 18% a year
18% per year on the purchase price
Fixed by statute4
District of Columbia · 18% a year
18% a year (1.5%/month), none on the overbid
Fixed rate; bidders bid the price up5
Florida · 18% a year
Up to 18%, bid down to 0.25%
Ceiling, bid down6
Illinois · 18% a year
Up to 9% per 6-month period, bid down
Ceiling, bid down7
Mississippi · 18% a year
1.5% a month on taxes and costs (not the overbid)
Fixed by statute8
New Jersey · 18% a year
Up to 18%, premium bidding
Ceiling, bid down9
Ohio · 18% a year
Up to 18%, bid down or negotiated
Ceiling, bid down10
Arizona · 16% a year
Up to 16%, bid down
Ceiling, bid down11
Wyoming · 15% a year
15% + one-time 3% penalty, no bidding
Fixed by statute12
Nebraska · 14% a year
14% flat
Fixed by statute13
Colorado · 13% a year
13% for 2026 (discount rate + 9), premium bidding
Fixed rate; bidders bid the price up14
Alabama · 12% a year
Up to 12%, bid down (lien auction counties)
Ceiling, bid down15
Hawaii · 12% a year
12% a year on the full purchase price, if redeemed
Fixed by statute16
Kentucky · 12% a year
12% simple, no bidding
Fixed by statute17
Louisiana · 12% a year
Up to 12% (1%/month), bid down to 0.7%/month
Ceiling, bid down18
Tennessee · 12% a year
12% a year on the full purchase price
Fixed by statute19
Vermont · 12% a year
12% (1% per month)
Fixed by statute20
Missouri · 10% a year
Up to 10%, premium bidding (no interest on the overbid)
Fixed rate; bidders bid the price up21
Montana · 10% a year
10% a year (5/6 of 1% a month), no bidding
Fixed by statute22
South Dakota · 10% a year
Up to 10%, bid down
Ceiling, bid down
One-time penalties instead of interest
These states pay a flat penalty or premium when the owner redeems, not a rate that grows with time. Redeeming in the first month earns the same as redeeming in the last, so on a quick redemption the penalty can beat any annual rate.
Texas · up to 25%
25% penalty
Georgia · up to 20%
20% premium in year one, +10% each later year
Indiana · up to 15%
Up to 15% of the minimum bid; 5%/yr on overbid
Delaware · up to 15%
Flat 15% premium on the purchase price, not an annual rate
South Carolina · up to 12%
3–12% of the bid by quarter, capped at the opening bid
Rhode Island · up to 10%
10% penalty within 6 months, then +1% of the price per month
Shortest wait for the property
How soon a lien or deed buyer can move to take the property if nobody redeems. In Maryland and D.C. it is the earliest date you can sue; the owner can still pay until the court rules.
West Virginia · 45 days
45+ days (until the deed issues)
Delaware · 60 days
60 days (counted from the court's confirmation of the sale)
Maryland · 6 months
Until a court forecloses (suit allowed after 6 months, 9 if owner-occupied)
District of Columbia · 6 months
6+ months (until a court forecloses)
Connecticut · 6 months
6 months
Texas · 6 months
180 days or 2 years
Ohio · 1 year
1+ year
Missouri · 1 year
1 year
Longest wait
Your money is tied up longer before you know whether the owner pays or you can go after the property. Capital efficiency matters as much as the headline rate.
Tax lien states vs. tax deed states
With a lien you buy the debt and get paid when the owner pays. With a deed you buy the property, sometimes subject to a buy-back window. See tax lien vs. tax deed if the difference isn't clear yet.
Alabama, Arizona, Colorado, District of Columbia, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, New Jersey, Ohio, South Dakota, West Virginia, Wyoming
Connecticut, Delaware, Georgia, Hawaii, Mississippi, Rhode Island, South Carolina, Tennessee, Texas, Vermont
Alaska, Arkansas, California, Idaho, Kansas, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Utah, Virginia, Washington, Wisconsin
Every state at a glance
Sorted by what you buy, then alphabetically. Each row links to the full page with the statute, the county calendar and the mistakes that cost first-time buyers money.
| State | What you buy | Rate or penalty | Redemption |
|---|---|---|---|
| Alabama | Tax lien certificate | Up to 12%, bid down (lien auction counties) | 3–4+ years |
| Arizona | Tax lien certificate | Up to 16%, bid down | 3+ years |
| Colorado | Tax lien certificate | 13% for 2026 (discount rate + 9), premium bidding | 3+ years |
| District of Columbia | Tax lien certificate | 18% a year (1.5%/month), none on the overbid | 6+ months (until a court forecloses) |
| Florida | Tax lien certificate | Up to 18%, bid down to 0.25% | 2 years |
| Illinois | Tax lien certificate | Up to 9% per 6-month period, bid down | 2.5–3 years (1 year for vacant/commercial) |
| Indiana | Tax lien certificate | Up to 15% of the minimum bid; 5%/yr on overbid | 1 year (120 days on county-held certificates) |
| Iowa | Tax lien certificate | 24% flat (2%/month), no bid-down | 1 year 9 months (+ 90-day notice) |
| Kentucky | Tax lien certificate | 12% simple, no bidding | None fixed: owner can pay until the foreclosure sale (suit after 1 year) |
| Louisiana | Tax lien certificate | Up to 12% (1%/month), bid down to 0.7%/month | 3 years minimum, then 30 days after suit is served |
| Maryland | Tax lien certificate | 6% default, set by each county (20% in Montgomery and Prince George's); price bidding, not rate | Until a court forecloses (suit allowed after 6 months, 9 if owner-occupied) |
| Missouri | Tax lien certificate | Up to 10%, premium bidding (no interest on the overbid) | 1 year |
| Montana | Tax lien certificate | 10% a year (5/6 of 1% a month), no bidding | 3 years |
| Nebraska | Tax lien certificate | 14% flat | 3+ years |
| New Jersey | Tax lien certificate | Up to 18%, premium bidding | 2 years |
| Ohio | Tax lien certificate | Up to 18%, bid down or negotiated | 1+ year |
| South Dakota | Tax lien certificate | Up to 10%, bid down | 3 years (+ 60-day notice) |
| West Virginia | Tax lien certificate | 0% on your bid (refunded without interest if redeemed) | 45+ days (until the deed issues) |
| Wyoming | Tax lien certificate | 15% + one-time 3% penalty, no bidding | 4+ years |
| Connecticut | Redeemable deed | 18% per year on the purchase price | 6 months |
| Delaware | Redeemable deed | Flat 15% premium on the purchase price, not an annual rate | 60 days (counted from the court's confirmation of the sale) |
| Georgia | Redeemable deed | 20% premium in year one, +10% each later year | 12 months, then until barment notice |
| Hawaii | Redeemable deed | 12% a year on the full purchase price, if redeemed | 1 year (longer in Honolulu and Maui if the deed is recorded late) |
| Mississippi | Redeemable deed | 1.5% a month on taxes and costs (not the overbid) | 2 years |
| Rhode Island | Redeemable deed | 10% penalty within 6 months, then +1% of the price per month | 1+ year (until the foreclosure decree) |
| South Carolina | Redeemable deed | 3–12% of the bid by quarter, capped at the opening bid | 12 months |
| Tennessee | Redeemable deed | 12% a year on the full purchase price | 1 year (90–180 days if long delinquent, 30 if vacant) |
| Texas | Redeemable deed | 25% penalty | 180 days or 2 years |
| Vermont | Redeemable deed | 12% (1% per month) | 1 year |
| Maine | Town keeps the lien | None to investors (town interest capped at 7% for 2026) | 18 months |
| Massachusetts | Town keeps the lien | 8% (16% on takings before Nov 2024) | 12+ months |
| New Hampshire | Town keeps the lien | 14% flat | 2 years |
| Alaska | Tax deed | None to investors; minimum bid = taxes, penalties, interest and costs | 1+ year after the foreclosure judgment |
| Arkansas | Tax deed | None to investors; minimum bid = back taxes, interest, penalties and costs | Pre-sale only — until 4 p.m. the last business day before the auction |
| California | Tax deed | None — deed sold at auction, no interest | None after the sale |
| Idaho | Tax deed | None — cash auction, no interest paid to investor | Pre-auction only — up to 14 months after the deed is issued |
| Kansas | Tax deed | None — cash auction, county-run | Pre-sale only: 1–3 years after the county bids it in, then until the day before the sheriff's sale |
| Michigan | Tax deed | None — deed sold at auction | None at auction — redemption ends March 31 after the foreclosure judgment |
| Minnesota | Tax deed | None — cash auction, State Deed issued | 3 years standard (1 year in targeted communities, 5 weeks if judicially abandoned) |
| Nevada | Tax deed | None — deed sold at auction | None after the sale (2 years before it, 1 if abandoned) |
| New Mexico | Tax deed | None — cash auction, min bid = debt owed | None after sale (2-year window to challenge the sale procedurally) |
| New York | Tax deed | None at county auctions; Nassau liens bid down from 10% per 6 months | 2 years after lien date (3–4 if extended locally) |
| North Carolina | Tax deed | None — deed sold at auction | None after the sale (payoff until confirmation; in rem, until upset bids close) |
| North Dakota | Tax deed | None — county sells forfeited land at or above a minimum price | None after the county sale (owner can repurchase until then) |
| Oklahoma | Tax deed | None: highest bid at the June resale | 3+ years |
| Oregon | Tax deed | None — county resale (broker listing, or auction from 2/3 of market value) | ~5 years total (3 yrs to judgment + 2 yrs more) before the county takes title |
| Pennsylvania | Tax deed | None — deed sold at auction | None after the sale (Philadelphia: ~9 months if occupied) |
| Utah | Tax deed | None — cash auction, min bid = debt owed | None after sale (pre-sale only, ~4–5 years delinquent to reach auction) |
| Virginia | Tax deed | None — property sold at a court-supervised auction | None after the sale |
| Washington | Tax deed | None — deed sold at auction | None after the sale (exception: 3 years for minors and adjudicated incompetents) |
| Wisconsin | Tax deed | None to investors; the county charges 1% a month (+ up to 0.5% penalty) | None after the county sells (owners: 2 years from the tax certificate, 1 in Milwaukee) |
Questions people ask
What are the best tax lien states?
It depends on what you want from the lien. The highest rates nobody can bid down: Iowa (24% a year), Maryland (20% a year), District of Columbia (18% a year). The highest ceilings, which do get bid down at auction: Florida, Illinois, New Jersey, Ohio. The fastest path to the property: West Virginia, Delaware, Maryland. A high rate on paper is not what you earn once other bidders compete.
Which state pays the highest tax lien interest rate?
Iowa: 24% a year (2% a month), fixed by statute, so nobody bids it down. Maryland counties can set their own rate above the 6% default — Montgomery and Prince George's charge 20% — and Florida, New Jersey, Ohio and D.C. top out at 18% a year, as does Illinois at 9% per six months. In Florida, New Jersey, Ohio and Illinois that 18% is a ceiling that bidding drives down.
Which states are tax deed states?
Alaska, Arkansas, California, Idaho, Kansas, Michigan, Minnesota, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Utah, Virginia, Washington and Wisconsin sell the property itself, with no redemption after the sale. Connecticut, Delaware, Georgia, Hawaii, Mississippi, Rhode Island, South Carolina, Tennessee, Texas and Vermont sell a deed the owner can still buy back for a set period, with a penalty or interest.
Which states sell tax lien certificates?
Alabama, Arizona, Colorado, District of Columbia, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, New Jersey, Ohio, South Dakota, West Virginia and Wyoming. In Maine, Massachusetts and New Hampshire the lien normally stays with the town.
Is Florida a tax lien or a tax deed state?
Both, one after the other. Florida counties sell tax lien certificates first, at up to 18% bid down. If the owner has not redeemed 2 years after April 1 of the year the certificate was issued, the holder can apply for a tax deed and the property goes to a tax deed auction. A certificate with no deed application is void after 7 years (Fla. Stat. § 197.482).
Rates and redemption periods are set by state statute, and some states let each county set its own. This ranking uses the same sourced data as each state page. Always confirm the current numbers against the county's own auction notice before bidding. Not financial or legal advice.