2024 List Of Tax Lien Percentages By State

If you’re new to tax lien investing you probably are curious (like I was) about tax lien percentages by state and what rates of return each state offers.

Knowing the tax lien certificates interest rates by state can make a big difference in your investment returns.

Let’s break it down state by state, so you know where to invest to get the highest rate of return on your money.

What Are Tax Lien Certificates?

Tax lien certificates are a way to invest in real estate by paying off someone’s property taxes.

The property owner then owes you the amount you paid plus interest.

If they don’t pay, you could end up owning the property.

Why Interest Rates Matter

Interest rates determine how much return you get on your investment.

Higher rates mean more profit.

Each state sets its own rates, so it’s smart to know which states offer the best returns.

State-by-State Breakdown of Tax Lien Interest Rates

Here’s a quick look at the interest rates and other key details for each state:

State	Interest Rate/Return	Lien or Deed State
Alabama	12% per annum	Lien State
Arizona	Up to 16% per annum	Lien State
Arkansas	10% per annum	Deed State
Colorado	9% per annum	Lien State
Connecticut	18% per annum	Lien State
Delaware	15% per annum	Lien State
Florida	Up to 18% per annum	Lien State
Georgia	20% penalty	Deed State
Hawaii	12% per annum	Deed State
Illinois	Up to 36% per annum	Lien State
Indiana	Up to 15% per annum	Lien State
Iowa	2% per month	Lien State
Kentucky	12% per annum	Lien State
Louisiana	12% per annum	Lien State
Maine	8% per annum	Lien State
Maryland	12% per annum	Lien State
Massachusetts	16% per annum	Lien State
Minnesota	10% per annum	Deed State
Mississippi	1.5% per month	Lien State
Missouri	10% per annum	Deed State
Montana	10% per annum	Lien State
Nebraska	14% per annum	Lien State
Nevada	12% per annum	Lien State
New Hampshire	18% per annum	Lien State
New Jersey	Up to 18% per annum	Lien State
New York	12% per annum	Lien State
Ohio	18% per annum	Lien State
Oklahoma	8% per annum	Lien State
Rhode Island	16% per annum	Lien State
South Carolina	12% per annum	Lien State
Tennessee	12% per annum	Deed State
Texas	25% penalty	Deed State
Vermont	12% per annum	Lien State
Virginia	10% per annum	Deed State
Washington D.C.	18% per annum	Lien State
West Virginia	12% per annum	Lien State
Wyoming	15% per annum	Lien State

tax lien percentages by state

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 interest rates to evaluate your potential returns.
Diversify: Consider investing in multiple states to spread your risk and potentially increase returns.

Next Steps For 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.

Final Thoughts

Investing in tax liens can be a profitable venture if you understand the interest rates 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!

Sources:

Alabama – https://www.revenue.alabama.gov/faqs/do-i-have-the-option-to-redeem-my-tax-delinquent-property/ , https://mobilecopropertytax.com/taxliensale/

Alaska – https://www.nolo.com/legal-encyclopedia/what-happens-if-i-don-t-pay-property-taxes-in-alaska.html

Arizona – https://www.azleg.gov/legtext/54leg/2r/bills/hb2445p.htm , https://www.nolo.com/legal-encyclopedia/what-happens-if-i-dont-pay-property-taxes-arizona.html

Arkansas – https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FAssembly%2FMeeting+Attachments%2F040%2F2952%2FG.03a+CSL+Rules+and+Act+673+of+2019.pdf , https://portal.arkansas.gov/state_agencies/commissioner-of-state-lands/real-estate-division/

California – https://ttc.lacounty.gov/auction-general-information/ , https://countytreasurer.org/redemption-information .