Tax Lien States
Many taxing jurisdictions use the alternative method of collecting delinquent real property taxes. This method involves the selling of "tax lien certificates" sometimes referred to as TLC's., which become a first lien on the property. These certificates can yield very high rates of return on your investment when the property is redeemed. In many cases these yields can be 20% per annum or even more. In the event the delinquent property owner does not redeem within the time provided for redemption, the holder of the tax lien can obtain title to the property. The following is a partial listing of states that offer you the opportunity to invest in government issued guaranteed tax lien certificates and the current rate of interest or penalty.
• ALABAMA - 12%- Redemption period 3 years TLC
• ARIZONA - 16% Redemption period 3 years TLC
• ARKANSAS - Limited Warranty Deed- Redemption period 3 years
• CALIFORNIA 18% - 2 year redemption when held Tax deed state
• COLORADO - 9% - 3 year redemption period TLC
• CONNECTICUT - 18% 2 year redemption period TLC & Tax deeds sold
• DELAWARE - 15% Penalty - One year redemption.
• FLORIDA - 18% per annum 2 year redemption period TLC & Tax deeds sold
• GEORGIA - 20% Penalty - One Year Redemption tax deed
• ILLINOIS - 36% for full year and 24% on farmland with a 2 year redemption period TLC
• INDIANA - 10% - 15% penalty second six months - up too 25% after one year.
• IOWA - 24% - Redemption period is 1.75 years.
• Kansas - 5% - redemption period 3 years
• KENTUCKY - 12% 3 year redemption period TLC
• LOUISIANA - 12% plus a 5% penalty for total of 17% - 3 year redemption period TLC and Tax Deed
• MARYLAND - 10% to 24%, counties handle sales different, Redemption period - 6 months - 2 years TLC
• MASSACHUSETTS - 16% redemption period up to 6 months TLC
• MICHIGAN - 12% the 1st yr redemption - 2 year redemption - Tax deeds State
• MINNESOTA - 12% redemption period 1 year TLC
• MISSISSIPPI - 17% redemption period 2 years - The owner of record has two years to redeem TLC
• MISSOURI - 10% + penalties owed + extra 8% redemption period 2 years - TLC & Tax Deed
• MONTANA - 10% - Redemption period 2-3 years - TLC & Tax deeds State
• NEBRASKA - 14% redemption period 3 years - TLC & Tax deed state sold in March
• NEVADA - 12% - Redemption period 120 days for Vacant land, 2 Years for developed land - TLC & Tax deed state
• NEW HAMPSHIRE - 18% - Redemption period 2 years varies in municipality - TLC & Tax Deed state
• NEW JERSEY - 18 % or more depending on penalties - Redemption period 2 years - TLC
• NEW YORK - 14% for counties that have sales - Redemption Period 1 year Sales in April or August - TLC & Tax Deed state depending on county
• NORTH DAKOTA - 9% to 12% - Redemption period 3 years, sales are in December - TLC State
• OHIO - 18% - Redemption period as short as 1 Year (ONLY for counties with 200,000 and up - TLC in June.
• OKLAHOMA - 8 % - Redemption period 2 years - TLC & Tax deed states
• OREGON - 5% - Redemption period 2 years - TLC
• PUERTO RICO - 20% regardless of when redeemed.
• RHODE ISLAND - 16% - Redemption period 1 year varies on the municipality - TLC
• SOUTH CAROLINA - 7-8 % plus 4% added 2nd year - redemption period 1 year- 18 months - TLC
• SOUTH DAKOTA - 12% - Redemption period 4 years - TLC 3rd Monday in December
• U.S. VIRGIN ISLANDS - 12% - Redemption 1 year
• VERMONT - 12% - Redemption period 1 year - auctions varies depending on the municipality - TLC
• WEST VIRGINIA - 12% - Redemption period 18 months - Sales in Oct. Nov. for some counties - TLC
• WISCONSIN - 18 % - Redemption 2 years - Sales are controlled by municipalities, info hard to find. Most
sales are in Sept. - TLC & Tax Deed
• WYOMING - 18% - Redemption 4 years - Sales vary on county sales are held July - Oct. - TLC
• WASHINGTON D.C. - 12% or 1% per month - Redemption period 6 months - TLC & Tax Deed State
Current Rates of Returns as of Januay, 2012 (Rates of Returns are Subject to Change Without Notice)