The short answer
Redeemable until the circuit court enters judgment; the holder cannot file to foreclose until 4 years after the tax lien auction, and the certificate expires 10 years after it
How the clock works
A 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. 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.
Who can redeem
The owner, including an owner of less than the whole interest, and the owner's heirs or personal representatives; any mortgagee or purchaser of the property or any portion of it; and any person holding a legal or equitable interest in the property or any portion of it, including a judgment creditor or other lienholder.
What the owner pays to redeem
The 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. 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.
How your interest accrues
The tax lien certificate bears the interest rate per year that the purchaser bid at auction, or agreed at a private sale, until the lien is redeemed or foreclosed. Statutory fees the holder pays in connection with the certificate are added to the redemption amount and carry the same rate. Interest on liens that draw no bid keeps accruing at the rate charged on delinquent real property taxes. Alabama sets no minimum return, so the bid rate is the whole return.
Why some certificates are bid to zero
Bidders compete on interest rate, not price. 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.
What happens when it ends
Alabama holds no routine county tax deed auction under the tax lien regime. A holder of all the sold, unexpired, outstanding tax lien certificates on a parcel may file an action in circuit court to foreclose the right to redeem and quiet title, but only once four years have passed since the tax lien auction and no later than ten years after it. The holder must mail a notice of intent at least 30 days and no more than 180 days before filing, to the owner of record, every recorded lienholder, the tax collecting official, and anyone else who may reasonably be believed to hold an interest.
A redeemed certificate, plus your accrued interest, is what makes the wait profitable; see how redemption periods work across states. An unredeemed certificate is instead your path to the property through a tax deed sale, which still does not convey marketable title on its own, so budget for a quiet title action.
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.