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.

State	Max rate	How it is set	Minimum	Source
Alabama(hybrid)	12%	Bid down at auction	No floor	Mobile 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
Arizona	16%	Bid down at auction	No floor	A.R.S. 42-18053, 42-18114
Colorado	14%	Fixed rate	None	C.R.S. § 39-12-103(3) ("Redemption made - interest")
District of Columbia	18%	Fixed rate	None	D.C. Code § 47-1348(a)(10), D.C. Law Library
Florida(hybrid)	18%	Bid down at auction	5%	Fla. Stat. 197.172, 197.472
Illinois	18%	Bid down at auction	No floor	35 ILCS 200/21-215 (Penalty bids, Property Tax Code)
Indiana	15%	Flat penalty	10%	Ind. Code 6-1.1-25-2
Iowa	24%	Fixed rate	None	Iowa Code §447.1 (Redemption, terms)
Kentucky	12%	Fixed rate	None	KRS 134.125 (Interest on Certificates of Delinquency); KRS 134.452 (Third-Party Purchaser)
Louisiana	12%	Bid down at auction	8.4%	La. Const. art. VII, §25 (interest/penalty ceilings) and La. R.S. 47:2154 (auction-rate mechanics)
Maryland	20%	Fixed rate	6%	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
Mississippi	18%	Fixed rate	None	Miss. Code Ann. § 27-45-3 (redemption amount) and § 27-45-27 (purchaser's lien interest)
Missouri	10%	Fixed rate	None	RSMo § 140.340 (Missouri Revisor of Statutes)
Montana	10%	Fixed rate	None	Mont. Code Ann. § 15-16-102 (Time for payment -- penalty for delinquency)
Nebraska	14%	Fixed rate	None	Neb. Rev. Stat. § 77-1824 (rate incorporated from § 45-104.01)
New Jersey	18%	Bid down at auction	None	N.J.S.A. 54:5-32 ("Sale in fee subject to redemption")
Ohio(hybrid)	18%	Bid down at auction	No floor	Ohio Rev. Code 5721.32, "Sale of tax certificates by public auction" (see also 5721.30 definitions) - codes.ohio.gov
South Dakota	10%	Bid down at auction	None	SDCL 10-23-8; 10-23-25; 54-3-16 (South Dakota Legislature)
West Virginia	12%	Fixed rate	None	W. Va. Code § 11A-3-56(a) (redemption interest, 1% per month); see also § 11A-3-58(a)
Wyoming	15%	Fixed rate	None	Wyoming 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 calculator See all tax lien states