If you’re new to the world of tax lien investing like I am, understanding tax lien redemption periods is crucial for making smart investment decisions.

Below is a table/list of tax lien redemption periods broken down state by state that I’ve put together.

Hopefully, you find it as useful as I do.

Let’s dive into what you need to know, broken down by state, including the District of Columbia.

But first, if you are totally new to tax lien investing here is a quick video explaining what it is.

What’s a Redemption Period?

When you buy a tax lien, the property owner can still keep their property by paying off the delinquent taxes within a set time, known as the redemption period.

This period varies by state and can affect how long you wait for a return on your investment.

Why It Matters

Redemption periods impact your investment timeline and risk. Shorter periods offer quicker returns, while longer periods mean waiting longer but potentially earning more interest.

Tax Lien Redemption Periods: State-by-State Breakdown (as of July 2024)

Let’s look at the redemption periods, interest rates, and whether each state is a lien or deed state.

State	Redemption Period	Interest Rate/Return	Lien or Deed State
Alabama	3 years	12% per annum	Lien State
Alaska	N/A	N/A	Deed State
Arizona	3 years	Up to 16% per annum	Lien State
Arkansas	2 years	10% per annum	Deed State
California	5 years	N/A	Deed State
Colorado	3 years	9% per annum	Lien State
Connecticut	6 months	18% per annum	Lien State
Delaware	1 year	15% per annum	Lien State
Florida	2 years	Up to 18% per annum	Lien State
Georgia	1 year	20% penalty	Deed State
Hawaii	1 year	12% per annum	Deed State
Idaho	3 years	N/A	Deed State
Illinois	2.5 years	Up to 36% per annum	Lien State
Indiana	1 year	Up to 15% per annum	Lien State
Iowa	1.75 years	2% per month	Lien State
Kansas	3 years	N/A	Deed State
Kentucky	1 year	12% per annum	Lien State
Louisiana	3 years	12% per annum	Lien State
Maine	1.5 years	8% per annum	Lien State
Maryland	6 months	12% per annum	Lien State
Massachusetts	6 months	16% per annum	Lien State
Michigan	1 year	N/A	Deed State
Minnesota	3 years	10% per annum	Deed State
Mississippi	2 years	1.5% per month	Lien State
Missouri	1 year	10% per annum	Deed State
Montana	3 years	10% per annum	Lien State
Nebraska	3 years	14% per annum	Lien State
Nevada	2 years	12% per annum	Lien State
New Hampshire	2 years	18% per annum	Lien State
New Jersey	2 years	Up to 18% per annum	Lien State
New Mexico	3 years	N/A	Deed State
New York	Varies by County	12% per annum	Lien State
North Carolina	N/A	N/A	Deed State
North Dakota	3 years	N/A	Deed State
Ohio	1 year	18% per annum	Lien State
Oklahoma	2 years	8% per annum	Lien State
Oregon	2 years	N/A	Deed State
Pennsylvania	N/A	N/A	Deed State
Rhode Island	1 year	16% per annum	Lien State
South Carolina	1 year	12% per annum	Lien State
South Dakota	3 years	N/A	Deed State
Tennessee	1 year	12% per annum	Deed State
Texas	2 years	25% penalty	Deed State
Utah	4 years	N/A	Deed State
Vermont	1 year	12% per annum	Lien State
Virginia	1 year	10% per annum	Deed State
Washington	3 years	N/A	Deed State
Washington D.C.	6 months	18% per annum	Lien State
West Virginia	18 months	12% per annum	Lien State
Wisconsin	2 years	N/A	Deed State
Wyoming	4 years	15% per annum	Lien State

tax lien redemption rates by state (as of 2024)

Helpful Tips for Investing in Tax Liens

Do Your Research: Always check the latest state regulations, as they can change.
Understand the Risks: Be aware of the redemption period and the interest rates to evaluate your potential returns.
Diversify: Consider investing in multiple states to spread your risk and potentially increase returns.

Frequently Asked Questions (FAQs)

How long are redemption periods in different states?

Redemption periods vary widely across different states.

What happens if the property owner doesn’t redeem?

Suppose the property owner doesn’t redeem the property by paying the delinquent taxes, interest, and penalties within the redemption period. In that case, the investor who purchased the tax lien can move to foreclose on the lien. This typically involves petitioning the court for a tax deed, which grants ownership of the property to the investor. The exact process and requirements vary by state.

Can redemption periods be extended?

Redemption periods can sometimes be extended, but this also varies by state. Extensions can occur under certain conditions, such as:

Legal Issues: If there are legal disputes or errors in the tax sale process.
Bankruptcy: If the property owner files for bankruptcy, the redemption period may be paused or extended.
Negotiation: In some cases, the property owner and lienholder may negotiate an extension.

It’s important to check the specific laws and regulations in the state where you’re investing to understand the exact conditions under which redemption periods can be extended.

Next Steps For Tax Lien Investors

Use Interactive Tools: Check out online maps and calculators that can help you compare states quickly.
Join Forums: Engage with other investors on platforms like BiggerPockets to learn from their experiences.
Stay Informed: Subscribe to newsletters and follow investment blogs to stay updated on any changes in tax lien laws.

Wrapping Up

Investing in tax liens can be a profitable venture if you understand the redemption periods and other state-specific details. Use this guide as a starting point and make sure to keep learning and adapting your strategies.

In my opinion, the best way I’ve found to learn is by doing and “failing forward” as they say. I bought my 1st investment property in 2020 during the middle of (you know what..cough..cough), and I had no clue what I was doing despite spending months researching how to invest in real estate.

But guess what? I did it.

And learned a ton of valuable lessons along the way!

So,If you’re truly interested in tax lien investing, consider subscribing to my newsletter and following along my journey from landlord to “leinlord” as a new tax lien investor.

As Leinlord grows, my goal is to provide a “behind the scenes” inside look at the tax lien auctions I participate in and thoroughly profile any properties that I win.

You’ll get to ride along with me as I walk through my risk analysis, deal structures, ROI calculations, bidding tactics, and exit strategies all documented for the world to see (even my L’s).

So please show your support and sign up for my newsletter OR if you are a Google Chrome user hit that “follow” button!

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Additionally, if you’re interested in booking a consultation to talk tax lien strategy feel free to schedule a one on one here.

P.S. I am still fairly new to tax lien investing but willing to share what I’ve learned so far, so please keep that in mind before you book!

I’m not an expert… (yet)

Look forward to having you in the Leinlord community!