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Alabama tax lien & tax deed sales

Alabama is a tax lien state, but the collection method is a county choice. Read more…

Under Section 40-10-180 the tax collecting official in each county decides, for all real property in that county for a given year, whether to collect delinquent taxes by selling a tax lien under Article 7 or by selling the property itself at the older probate court tax sale under Article 1. Most counties now run the tax lien auction. Liens are bid down from a starting rate that cannot exceed 12 percent, the auction falls between March 1 and June 15, and the winner receives a tax lien certificate. If the lien is never redeemed, the holder may sue in circuit court to foreclose the right to redeem and quiet title, but not until four years after the auction. The governing law is the Code of Alabama 1975, Title 40, Chapter 10.

Rules verified Jul 25, 2026 against Alabama Statutes.

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Sale type: Tax lien
Maximum rate: 12%
Auction method: judicial foreclosure
Over-the-counter: Available

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Tax lien certificates

You pay the overdue taxes and receive a certificate that earns interest until the owner redeems. The rate is bid down at auction, so the winning bid is usually a proxy bid down to your floor. Compare bidding methods to see how that changes what you earn.

Bidding method: Bid down interest
Maximum rate: 12% per year, bid down at auction
Minimum return: No statutory minimum; interest accrues at your bid rate
Next expected: between March 1 and June 15, 2027 (window; exact dates post per county)
Certificate life: Expires 10 years after issuance

Sale timingThe tax lien auction is held no earlier than March 1 and no later than June 15 of the current ad valorem tax year, between 8:30 a.m. and 4:00 p.m. on the auction date. More…

The tax collecting official must notify each delinquent taxpayer at least 30 days before the auction by first class mail plus newspaper advertising, an official online posting, or courthouse posting, and must prepare the tax lien auction list at least 30 days ahead.

Zero-bid ruleBidders compete on interest rate, not price. More…

The amount to be paid is fixed at all taxes, interest, penalties, fees and costs due, plus a 45 dollar administrative fee and any amount owed to a prior certificate holder who did not exercise the first right to purchase. The beginning interest rate bid cannot exceed 12 percent and each later bid must be lower than the one before it. Alabama sets no minimum-return floor, so bidding can run to zero percent and a low winning bid earns only that low rate. The bid increment and the auction procedure are set by the tax collecting official rather than by statute, so confirm both before you register. A tie at an in-person auction is broken by drawing lots, and a tie online is broken by a random number generator.

Redemption, delinquency, and over-the-counter at a glance

Redemption

How longA tax lien can be redeemed at any time before the circuit court enters judgment in a foreclosure action, and the holder cannot file that action until four years after the auction or the tax official's private sale. More…

If the holder does not commence a foreclosure action within ten years of the auction or sale, the certificate expires and the lien becomes void. A certificate holder has no right to enter or possess the property, make repairs, or charge rents before it receives the circuit clerk's deed. In a county that uses the Article 1 property tax sale instead, land sold to a purchaser other than the state may be redeemed within three years from the date of sale, and land bid in for the state may be redeemed at any time before title passes out of the state.

What the owner paysThe redeemer pays the tax collecting official the total delinquent tax, interest, penalties, fees (excluding lost certificate fees) and costs shown on the tax lien certificate, including the cost of a title report obtained for a foreclosure and quiet title action, plus interest at the rate stated on the certificate, plus any other taxes, interest, penalties, fees and costs then due and owing. More…

Statutory fees the holder paid also carry the certificate rate. The certificate of redemption itself costs ten dollars. If redemption happens after a foreclosure action has been filed, the court can also order the redeemer to repay the holder's reasonable costs and attorney fees.

Delinquency

How it startsAlabama property taxes become due and payable on October 1 each year and become delinquent if they are not paid before January 1 following. More…

Under Section 40-1-3 the state holds a lien on every parcel from October 1 for the taxes assessed against it, and the county and any municipality hold like liens. Those tax liens are superior to all other liens, which is what makes an Alabama tax lien certificate senior collateral.

Over-the-counter

How to buyLiens that draw no bid at the auction stay with the county and keep accruing interest at the delinquent-tax rate. More…

At any time after the auction date the tax collecting official may sell an unsold lien at private sale for no less than all taxes, interest, penalties, costs and fees due, plus any amount payable to a prior certificate holder who did not exercise the first right to purchase. The interest rate on a private sale is the rate agreed with the tax collecting official and cannot exceed 12 percent, so an over-the-counter lien often carries the full rate rather than a bid-down rate. Every private sale is entered in the county record of tax lien auctions and sales.

What is availableAlabama has no Lands Available list. In a county that uses the Article 1 property tax sale, land bid in for the state is listed by the state Land Commissioner, and after three years any unredeemed portion may be sold at private sale for at least the amount the state bid plus 12 percent per year, together with the taxes accrued since the sale plus 12 percent per year. More…

Beginning January 1, 2025 the Land Commissioner may also sell state-held land by online public auction through a contracted auction company once five years have passed since the sale to the state, for the best price obtainable.

All 67 Alabama counties

Sales are organized by county. Search your city or county, or filter by whether the tax deed sale runs online or in person. Each row shows the certificate-sale platform for quick comparison.

Frequently asked questions

Does Alabama sell tax liens or tax deeds?

Both methods exist in statute, and each county picks one. The tax collecting official has sole authority to decide whether the county collects delinquent taxes by selling a tax lien under Article 7 or by selling the property itself under Article 1, and the choice applies to all real property in that county for the year. A county that changes its method must publish the change no later than October 1. Most counties now run the tax lien auction, so check with the county before you plan a bid.

What interest rate do Alabama tax liens pay?

The beginning interest rate bid cannot exceed 12 percent, and bidders compete by accepting a lower rate. Each later bid must be below the one before it, and Alabama sets no minimum-return floor, so the rate can be bid to zero and a low winning bid earns only that low rate. The certificate then bears the winning rate per year until the lien is redeemed or foreclosed.

When is the Alabama tax lien auction held?

The auction is held no earlier than March 1 and no later than June 15 of the current ad valorem tax year, between 8:30 a.m. and 4:00 p.m. on the auction date. The tax collecting official notifies delinquent taxpayers at least 30 days ahead and prepares the tax lien auction list at least 30 days before the sale, so the list and the exact date post in late winter or early spring.

See all Alabama FAQ

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