- 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.
- How long is the redemption period on an Alabama tax lien?
- There is no fixed cutoff date for the owner. A tax lien can be redeemed at any time until the circuit court enters judgment in a foreclosure action. What is fixed is the investor's timeline: the certificate holder cannot file to foreclose the right to redeem until four years after the auction, and if no action is filed within ten years the certificate expires and the lien becomes void.
- How does an Alabama certificate holder get title?
- By suing, not by waiting. After four years the holder of all the sold, unexpired, outstanding certificates on a parcel files an action in circuit court to foreclose the right to redeem and quiet title, after mailing a notice of intent 30 to 180 days beforehand. If the court finds the auction valid, notice proper, and the liens unredeemed, it vests fee simple title in the holder and directs the circuit clerk to execute a deed. Until that deed issues the holder cannot enter or possess the property, make repairs, or charge rent.
- Can you buy Alabama tax liens over the counter?
- Yes. Liens that draw no bid stay with the county, and at any time after the auction date the tax collecting official may sell one at private sale for no less than all taxes, interest, penalties, costs and fees due, plus anything owed to a prior certificate holder. The rate is 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.
- What happens if my county still sells the property instead of the lien?
- In an Article 1 county the probate court decrees a sale, the tax collector sells the land at the courthouse to the highest bidder for cash, and no sale can be made for less than the decree plus expenses. The buyer gets a certificate of purchase, and after three years the judge of probate issues a deed on the unredeemed parcels. Redemption there runs three years from the date of sale, and the redeemer pays the sale amount with interest at 8 percent per year, plus taxes the purchaser paid with the same 8 percent, plus interest on the portion of any excess bid up to 15 percent of the market value set by the assessing official.
- Do I have to keep buying the next year's liens?
- You get first refusal, not an obligation. The holder of a tax lien certificate has the first right to purchase the lien for a later delinquency on the same parcel, exercisable between 5 and 30 days before the auction date, at the same interest rate as the existing certificate. Skip it and the redemption price of your lien is added to the purchase price at the later auction, your certificate is cancelled, and it transfers to the buyer of the new lien.
- When is payment due after an Alabama tax lien auction?
- The purchase price is due in a form the tax collecting official accepts no later than one hour before close of business on the auction date. If the auction is online, payment is due by close of business two days after the auction. The price is all taxes, interest, penalties, fees and costs due, plus a 45 dollar administrative fee and any amount payable to a prior certificate holder who did not exercise the first right to purchase.
Verified Jul 25, 2026 against Alabama statutes.
Tax Sale Atlas publishes educational information about public tax sale processes. This is not legal, financial, or investment advice. Rules, dates, and fees change; confirm with the county office before you bid.