The statutory ceiling
This is the maximum. Bidders compete by bidding the rate down at the sale, so the rate you actually earn is set at the auction and is often lower. There is no statutory minimum, so a competitive bid can run the rate to zero.
No minimum rate
Arizona sets no statutory floor. A certificate bid down to a low rate, or to zero, earns only that rate, so competition can erase the yield entirely.
How interest accrues
Interest is 16 percent per year, simple, and a fraction of a month is counted as a whole month. The winning bid rate accrues from the first day of the month following the purchase of the tax lien. There is no minimum-return floor.
Why some certificates are bid to zero
Bidders compete by accepting a lower rate of interest, and the lowest rate wins the lien. Rates are bid down from the 16 percent statutory maximum. Arizona sets no minimum-return floor, so a low winning bid earns only that low rate. Investors accept very low rates mainly to secure the lien on parcels they eventually want to foreclose.
The headline rate is a ceiling, not a forecast. To see what a certificate actually pays after the rate is bid down, run the numbers in the yield calculator, and compare Arizona against other states on interest rates by state.
Verified Jul 13, 2026 against Arizona 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.