A tax deed sale is a public auction of real property that occurs when the property owner fails to pay their property taxes. The government entity, usually a county, seizes the property and sells it to recover the unpaid taxes. Here are the key points about tax deed sales:
- Unpaid Taxes: When property taxes are not paid, the government has the authority to place a lien on the property. If the taxes remain unpaid for a certain period, the government can foreclose on the lien and sell the property at a tax deed sale.
- Public Auction: The property is sold at a public auction, often to the highest bidder. These auctions are typically held in person or online, depending on the jurisdiction.
- Ownership Transfer: The winning bidder receives a tax deed, which grants them ownership of the property. This deed typically wipes out most other liens on the property, but it’s important to research specific local laws and potential remaining liens.
- Risks and Due Diligence: Buying property at a tax deed sale can be risky. Potential buyers should conduct thorough research on the property, including any existing liens, property condition, and local laws governing the sale and ownership transfer.
- Investment Opportunity: For some investors, tax deed sales present an opportunity to purchase properties at below-market prices, potentially leading to significant returns if the property is in good condition and located in a desirable area.
Each state and locality has its own specific procedures and laws governing tax deed sales, so it’s important to understand the local rules and regulations before participating in one.
Below you will find a list of states which sell tax deeds. In addition, linked with each state are tax lien summaries including, the statute mandated penalty rates, redemption periods and other tax sale information for buying tax deeds.
| State: | Interest Rate: | Penalty Rate: | Redemption Period: |
|---|---|---|---|
| Alaska | none | none | none |
| Arkansas | none | none | none |
| California | none | none | none |
| Idaho | none | none | none |
| Kansas | none | none | none |
| Maine | none | none | none |
| Michigan | none | none | none |
| Minnesota | none | none | none |
| Nevada | none | none | none |
| New Hampshire | none | none | none |
| New Mexico | none | none | none |
| New York | none | none | none |
| North Carolina | none | none | none |
| North Dakota | none | none | none |
| Ohio | none | none | none |
| Oklahoma | none | none | none |
| Oregon | none | none | none |
| Pennsylvania | none | none | none |
| Utah | none | none | none |
| Virginia | none | none | none |
| Washington | none | none | none |
| Wisconsin | none | none | none |
Join the Discussion
Research which states offer tax lien certificates or tax deeds
Click map to research each states tax lien process for selling tax lien certificates and tax foreclosures.
Answers to questions on tax lien certificates and tax deeds.
What effect do liens have on title?
What are tax lien certificates?
What is the tax sale bidding process?
How do you buy tax lien certificates?
What happens to unsold tax liens?
Can you buy tax liens with a business?
How do you get a tax sale list?
Which states sell hybrid tax deeds?
View articles answer questions on tax lien certificates, tax deeds, and more.
