- Does Kentucky sell tax liens or tax deeds?
- Kentucky sells tax liens, in the form of certificates of delinquency. The sheriff collects property taxes and files every real property claim still unpaid on April 15 with the county clerk, at which point it becomes a certificate of delinquency. The county clerk, not the sheriff, sells those certificates. Kentucky holds no county tax deed auction; a certificate holder reaches title only by suing in circuit court.
- What interest rate does a Kentucky certificate of delinquency pay?
- Twelve percent per year, simple, never compounded. For a third-party purchaser the interest runs on the amount actually paid to the county clerk, from the purchase date until the certificate is paid off. A fraction of a month counts as a whole month, so even a very fast payoff earns one month of interest. There is no bidding that could lower that rate and no premium that could dilute it.
- How does the Kentucky county clerk sale actually work if there is no bidding?
- Certificates sell at the amount due, so purchasers compete for access rather than on price. A purchaser who already holds a prior year certificate on a parcel files a priority list with the clerk fifteen days before the sale and takes that parcel's current certificate before the sale opens, with the most recent tax year ranking first. What remains is sold in lots sized by the county's volume, from five in the smallest counties to fifty in the largest, and a random drawing on the day of the sale sets the order in which registered purchasers choose lots. Purchasers who are not present for the drawing go to the bottom of the order. Registering with the county clerk costs 5 dollars per priority certificate and 10 dollars per current certificate on your lists, capped at 250 dollars a year for that county.
- Do I have to register with the state before buying Kentucky certificates?
- Yes, if you cross any of three thresholds in a calendar year: more than five certificates statewide, more than three certificates in any one county, or more than 10,000 dollars invested statewide. You must hold the Department of Revenue certificate of registration before making the purchase that crosses the line. The application carries a nonrefundable 250 dollar processing fee, the certificate cannot be transferred or assigned, and it expires on December 31 of the year it is issued regardless of when you got it. You also register separately with each county clerk whose sale you want to join.
- How long does a Kentucky property owner have to redeem?
- There is no fixed deadline while the certificate is outstanding. The delinquent taxpayer or anyone with a legal or equitable estate in the property may pay the certificate holder at any time, and that stays true until a court forecloses. After a judicial foreclosure sale the answer changes and depends on the appraisal: if the property brought less than two thirds of its appraised value the former owner has six months to redeem by paying the purchase money plus 10 percent per annum and the purchaser's reasonable post-sale costs, and if it brought two thirds or more there is no redemption right at all.
- How does a Kentucky certificate holder get the property?
- By filing suit, not by waiting for a deed. An action to collect the amount due or to enforce the tax lien may be brought any time after one year from the date the taxes became delinquent and must be brought within eleven years of that date. A third-party purchaser must first notify the delinquent taxpayer within 50 days of getting the certificate, repeat that notice every six months, and send a further notice to the taxpayer and every mortgagee at least 45 days before filing. If the court orders a sale, the property is appraised and sold by the master commissioner, and if nobody bids the commissioner deeds it to the certificate holders pro rata.
- Can you buy Kentucky certificates of delinquency over the counter?
- Yes. A certificate that goes unpaid at the annual sale can be paid to the county clerk at any time afterward by any person, as long as it is not under a payment plan with the department or the county attorney and is not known to be in litigation. You still need a current Department of Revenue registration if you cross the statutory thresholds, and you still register and pay the fee with that county clerk. Certificates that arrive too late for one year's sale are held for the next one, and only insiders such as the owner, a tenant, or a mortgagee may pay them in the meantime.
- What can a Kentucky certificate holder charge the property owner?
- Only what KRS 134.452 allows. Before suit that means the amount paid for the certificate, 12 percent interest on it, and prelitigation attorney fees capped by the size of the certificate at 350, 560, or 700 dollars, with an aggregate cap of one and a half times the largest bill's cap when several certificates are held against the same taxpayer, no more than 175 dollars accruing per notice, and no more often than every 90 days. Up to 115 dollars in recording and release administration fees may be added, plus 8 dollars a month if an installment plan is in place. Litigation fees are presumptively reasonable to 2,000 dollars and beyond that only with the court's approval.
Verified Aug 23, 2026 against Kentucky 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.