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Tax Sale Atlas

National reference

Tax lien interest rates by state

The maximum interest a tax lien certificate can earn, and how that rate is set, varies by state. Some states fix the rate by statute; others let bidders compete by bidding the rate down at the sale. This table lists the ceiling, the mechanism, and any statutory minimum, each cited to the source.

StateMax rateHow it is setMinimumSource
Alabama(hybrid)12%Bid down at auctionNo floorMobile County Revenue Commission, Tax Lien FAQs (citing Code of Alabama Sections 40-10-186 and 40-10-197(j)); deed-path rate per Code of Alabama Section 40-10-122 and Ala. Admin. Code r. 810-4-6-.02
Arizona16%Bid down at auctionNo floorA.R.S. 42-18053, 42-18114
Colorado14%Fixed rateNoneC.R.S. 39-12-103 "Redemption made - interest" (subsection (3) sets the Sept-1 discount-rate + 9 points formula). OFFICIAL Colorado General Assembly OLLS publication: the 2024 C.R.S. Title 39 volume PDF (content.leg.colorado.gov). Section read verbatim in the volume 2026-07-25 (whole-title PDF; locate the section by number inside). Replaces a FindLaw mirror; leg.colorado.gov has no per-section text pages.
District of Columbia18%Fixed rateNoneD.C. Code § 47-1348(a)(10), D.C. Law Library
Florida(hybrid)18%Bid down at auction5%Fla. Stat. 197.172, 197.472
Illinois9%Bid down at auctionNo floor35 ILCS 200/21-215
Indiana15%Flat penalty10%Ind. Code 6-1.1-25-2. Official host iga.in.gov is JavaScript-rendered (no fetchable per-section text);. A 2026-07-25 browser pass confirmed iga.in.gov renders the Code only through a client-side app (section content served via an internal API, not a fetchable per-section URL or static PDF), so the verified FindLaw mirror is retained for this non-live state; re-verify at iga.in.gov on state launch.
Iowa24%Fixed rateNoneIowa Code §447.1 (Redemption, terms)
Kentucky12%Fixed rateNoneKRS 134.125 (Interest on Certificates of Delinquency); KRS 134.452 (Third-Party Purchaser)
Louisiana12%Bid down at auction8.4%La. Const. art. VII, §25 (interest/penalty ceilings) and La. R.S. 47:2154 (auction-rate mechanics)
Maryland20%Fixed rate6%Montgomery County, MD Dept. of Finance, Tax Sale Information and Procedures (citing Tax-Prop. §14-820); corroborated by Baltimore City Code Art. 28 §8-1
Mississippi18%Fixed rateNoneMiss. Code Ann. § 27-45-3 (redemption amount) and § 27-45-27 (purchaser's lien interest), Unannotated Mississippi Code hosted by LexisNexis (state-designated official publisher); retrieve the cited sections by section number (no per-section deep link).
Missouri10%Fixed rateNoneRSMo § 140.340 (Missouri Revisor of Statutes)
Montana10%Fixed rateNoneMont. Code Ann. § 15-16-102 (Time for payment -- penalty for delinquency)
Nebraska14%Fixed rateNoneNeb. Rev. Stat. § 77-1824 (rate incorporated from § 45-104.01)
New Jersey18%Bid down at auctionNoneN.J.S.A. 54:5-32 ("Sale in fee subject to redemption"). Official host is the New Jersey Legislature (njleg.state.nj.us), whose statute database is a frames/JavaScript gateway with no stable per-section deep link, (The 18% redemption-interest cap in 54:5-32 was corroborated via search snippet of the official text.). A 2026-07-25 pass confirmed njleg.state.nj.us serves statutes only through a frames/JavaScript gateway with no stable per-section URL, so the verified FindLaw mirror is retained for this non-live state; re-verify at njleg on state launch.
Ohio(hybrid)18%Bid down at auctionNo floorOhio Rev. Code 5721.32, "Sale of tax certificates by public auction" (see also 5721.30 definitions) - codes.ohio.gov
South Dakota10%Bid down at auctionNoneSDCL 10-23-8; 10-23-25; 54-3-16 (South Dakota Legislature)
West Virginia12%Fixed rateNoneW. Va. Code § 11A-3-56(a) (redemption interest, 1% per month); see also § 11A-3-58(a)
Wyoming15%Fixed rateNoneWyoming Statutes § 39-13-109(e)(iv)(A) (Redemption, penalty + interest owed)

Rates are the statutory ceiling. In bid-down states the rate you actually earn is set at the auction and is often well below the ceiling. Confirm the current figure with the county before you bid, and see realistic tax lien returns for why the effective yield differs from the headline rate.

Estimate what a certificate actually pays

Plug a rate and redemption timeline into the yield calculator to see the real return, floor included.

Open the yield calculatorSee all tax lien states