The statutory ceiling
This rate is set by statute rather than bid down at the sale, so every certificate sold carries it. Competition happens on price instead. There is no statutory minimum return.
No minimum rate
Colorado sets no statutory minimum return. Because the rate is not bid down, competition shows up in the price instead, which is what erodes your yield.
How interest accrues
Redemption interest runs from the date of sale on the taxes, delinquent interest, and costs for which the lien sold, and on any subsequent taxes the holder pays and has endorsed on the certificate. Portions of a month count as a whole month. The rate is not fixed in the statute. C.R.S. 39-12-103(3) sets it at nine percentage points above the Kansas City Federal Reserve Bank discount rate, rounded to the nearest full percent, and the commissioner of banking establishes it each September 1 to take effect that October 1. The rate effective October 1, 2025 is 14 percent. There is no minimum-return floor in the redemption statute. The 8 percent floor investors sometimes see quoted sits in C.R.S. 39-12-111, which covers county repayment when a lien was wrongfully sold on land that owed no tax, and it does not apply to ordinary redemptions.
How the bidding works
Colorado does not bid the interest rate down. Every certificate sold in a given rate year earns the same statewide rate, and competition happens through premium bidding instead. The lien opens at the taxes, delinquent interest, and fees due, and the bidder who pays the largest amount in excess wins. That excess is credited to the county general fund. It earns no interest, it is not added to the redemption amount, and it is not refunded when the owner redeems, so an aggressive premium directly reduces the investor's yield. Treasurers may also set a minimum total below which they will not accept competitive bids.
When the certificates sell
The auction must commence on or before the second Monday in December each year. If the lien cannot be advertised and offered by then, the treasurer holds the auction on a later date that still allows time for the required published notice. Most counties schedule the sale during the autumn, so confirm the exact date with the county treasurer.
The headline figure is a ceiling, not a forecast. To see what a certificate actually pays over a real holding period, run the numbers in the yield calculator, and compare Colorado against other states on interest rates by state.
Verified Jul 29, 2026 against Colorado 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.