The statutory ceiling
This is a flat statutory amount, not an accruing annual rate. It is owed in full anywhere inside its window, so a fast redemption produces a high annualized return and a slow one produces a low one. It never falls below 10% on redemption.
The statutory penalty
Redemption pays a flat 10% of the amount paid, owed in full anywhere inside its window rather than prorated, so the annualized return depends entirely on how fast the owner redeems.
How interest accrues
The return is a flat penalty, not accruing interest. Redemption within six months of the sale pays 110 percent of the minimum bid; redemption after six months and within one year pays 115 percent. The penalty steps rather than prorating, so a certificate redeemed in month two and one redeemed in month five both pay 10 percent. Separately, 5 percent per year accrues on the amount by which the purchase price exceeded the minimum bid and on any taxes and special assessments the buyer pays after the sale.
How the bidding works
Indiana bids up, not down. The treasurer sells to the highest bidder at public auction, and no parcel may sell for less than the statutory minimum bid, which is the delinquent taxes and special assessments, the taxes due in the year of sale, all penalties, the county's cost of sale, unpaid costs from a prior sale, and reasonable collection expenses. Anything paid above that minimum is the overbid, and the overbid earns only 5 percent per year, so a large premium dilutes the return.
When the certificates sell
Indiana fixes no calendar month for the sale. The county treasurer certifies the delinquency list to the auditor no later than 51 days after the first tax payment due date, the auditor publishes notice once a week for three consecutive weeks, and the court enters judgment and the order for sale no later than three days before the advertised sale date. Counties set their own sale dates within that chain.
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 Indiana against other states on interest rates by state.
Verified Jul 29, 2026 against Indiana 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.