TaxLienSimple
The TaxLienSimple Index · Statute-Sourced · 2026

Best States for Tax-Lien & Tax-Deed Investing

All 50 states + D.C. ranked by what the statute actually pays — investor return, redemption period, and bid method — cross-referenced with the live auction inventory we track. No affiliate hype; every rate traces to state law.

50jurisdictions ranked
201,306live parcels tracked
600counties with inventory
8–36%statutory return range
How we rank. A 100-point composite: statutory return 35 (year-one interest or redemption penalty, from state law) · yield protection 15 (fixed/penalty rates beat bid-down, which competition erodes) · accessibility 15 (published catalog + online sales) · live inventory 20 (parcels we actively track) · redemption efficiency & data confidence 15. Tax-deed states earn no interest — their return is the discount to market value, scored as an acquisition play. A high statutory rate is a ceiling, not a promise: in bid-down states (FL, NJ, AZ) crowding can push the realized rate to 1–5%. Sources: state tax codes & county treasurer offices. Refreshed continuously.

💰 Top tax-lien states (statutory interest)

Illinois (36%) · Kentucky (12%) · Mississippi (18%) · West Virginia (12%) · Indiana (15%). Fixed-rate states (Iowa 24%) protect the headline yield; bid-down states can be competed lower.

🏠 Top redeemable-deed states (flat penalty)

Texas (25%) · Georgia (20%) · Tennessee (12%) · South Carolina (12%) · Delaware (15%). You take the deed and earn a flat penalty if the owner redeems — Texas pays 25% even on a fast redemption.

⚖️ Statutory max is a ceiling, not your return. The number every other "best states" list quotes is the legal maximum — but in high-competition, online-auction counties (Miami-Dade & Broward FL, Maricopa AZ, most of Maryland) institutional funds bid the rate down to 0.25%–5%. One Arizona county fell from 10.5% to 6.6% in a single year after banks moved in. The full statutory rate actually survives in low-competition states that don't bid the rate down at all: Iowa (24%, rotational), Nebraska (14%, rotational), Wyoming (15%+3%), Montana (10%), South Carolina, and rural counties in Arizona & Colorado. That gap — not the headline rate — is what decides your real yield.
#StateTypeReturnRedemptionBid methodLive inventoryTLS Index
1 IllinoisIL · 35 ILCS 200/21-215* Tax Lien 36% 2–2.5 years penalty 781 co. S 75.3
2 KentuckyKY · KRS ch. 134 Tax Lien 12% 1 year n/a 112,297118 co. A 71.2
3 TexasTX · Tex. Tax Code §34.21* Redeemable Deed 25% 180 days–2 years highest-bid 4,29398 co. A 70.6
4 MississippiMS · Miss. Code Title 27, ch. 45 Tax Lien 18% 2 years premium 7,41571 co. A 69.2
5 ArkansasAR · Ark. Code Title 26, ch. 37 Tax Deed deed only ~None post-sale highest-bid 8,65267 co. A 65.2
6 West VirginiaWV · W. Va. Code ch. 11A Tax Lien 12% ~18 months premium 4,35652 co. A 63
7 MichiganMI · MCL §211.78* Tax Deed deed only None (final at sale) highest-bid 7,08975 co. B 58.9
8 GeorgiaGA · Ga. Code §48-4-42* Redeemable Deed 20% 12 months highest-bid 5235 co. B 58.8
9 IndianaIN · Ind. Code 6-1.1-24/25 Tax Lien 15% 1 year premium 3,1072 co. B 58.5
10 District of ColumbiaDC · D.C. Code §47-1303* Tax Lien 18% 6 months premium 2,1431 co. B 57.5
11 IowaIA · Iowa Code §447.1* Tax Lien 24% ~2 years rotational 313 co. B 56.5
12 New MexicoNM · N.M. Stat. ch. 7, art. 38 Tax Deed deed only None (2-yr window to challenge) highest-bid 2225 co. B 55.8
13 FloridaFL · Fla. Stat. ch. 197 Tax Lien 18% 2 years bid-down 1,9768 co. B 55.7
14 PennsylvaniaPA · 72 P.S. (RETSL) Tax Deed deed only None premium 4,4897 co. B 55.6
15 MissouriMO · Mo. Rev. Stat. ch. 140 Tax Lien 10% 1 year (1st/2nd offering) premium 14,7777 co. B 55.4
16 New YorkNY · RPTL Art. 11 Tax Deed deed only ~2 years (varies) n/a 8992 co. B 55.3
17 New JerseyNJ · N.J.S.A. Title 54, ch. 5 Tax Lien 18% 2-year wait to foreclose bid-down 1,51616 co. B 55.2
18 ArizonaAZ · A.R.S. Title 42, ch. 18 Tax Lien 16% 3 years bid-down 5,9564 co. B 54.7
19 MarylandMD · Md. Tax-Property, Title 14 Tax Lien 24% 6 months (9 in Baltimore City) premium 21 co. B 54.7
20 TennesseeTN · Tenn. Code §67-5-2701* Redeemable Deed 12% 1 year (shorter for vacant/abandoned) highest-bid 2,0131 co. B 54.6
21 LouisianaLA · La. R.S. §47:2153* Tax Lien 17% 3 years bid-down 4,6084 co. B 54.4
22 South CarolinaSC · S.C. Code ch. 12-51 Redeemable Deed 12% 1 year premium 1,7632 co. C 53.6
23 DelawareDE · 9 Del. C. ch. 87 Redeemable Deed 15% 60 days after confirmation highest-bid 1904 co. C 53.2
24 CaliforniaCA · Cal. Rev. & Tax. §3691 et seq. Tax Deed deed only None after sale highest-bid 1,5644 co. C 52.5
25 OhioOH · Ohio Rev. Code ch. 5721 Tax Lien 18% 1 year bid-down 2286 co. C 51.8
26 AlabamaAL · Ala. Code Title 40, ch. 10 Tax Lien 12% 3 years bid-down 8,9631 co. C 51.5
27 North CarolinaNC · N.C.G.S. ch. 105 Tax Deed deed only Until sale confirmed highest-bid 6534 co. C 50.2
28 MinnesotaMN · Minn. Stat. ch. 281/282 Tax Deed deed only None highest-bid 5083 co. C 49.1
29 NebraskaNE · Neb. Rev. Stat. §77-1807* Tax Lien 14% 3 years premium 2852 co. C 48.9
30 ConnecticutCT · Conn. Gen. Stat. ch. 204 Redeemable Deed 18% 6 months highest-bid 394 co. C 48.5
31 North DakotaND · N.D.C.C. ch. 57-28 Tax Deed deed only Until Oct 1 of foreclosure year highest-bid 1341 co. C 47.5
32 WashingtonWA · RCW §84.64.070* Tax Deed deed only None (closes day before sale) highest-bid 892 co. C 46.7
33 ColoradoCO · Colo. Rev. Stat. §39-12-103* Tax Lien 14% 3 years premium 51 co. D 44.5
34 New HampshireNH · RSA §80:69* Tax Lien 14% 2 years n/a — D 43.8
35 WisconsinWI · Wis. Stat. ch. 75 Tax Deed deed only ~2 years n/a — D 43.5
36 Rhode IslandRI · R.I. Gen. Laws ch. 44-9 Tax Lien 10% 1 year penalty 1071 co. D 43.2
37 WyomingWY · Wyo. Stat. §39-13-108 Tax Lien 15% 4–6 years n/a — D 40.8
38 VermontVT · 32 V.S.A. §5260* Redeemable Deed 12% 1 year premium — D 40.6
39 HawaiiHI · HRS ch. 246 Redeemable Deed 12% 1 year highest-bid — D 40.1
40 MassachusettsMA · M.G.L. ch. 60 Tax Lien 8% ~6 mo min to foreclose n/a 241 co. D 39.5
41 IdahoID · Idaho Code ch. 63-10 Tax Deed deed only None highest-bid 31 co. D 39
42 NevadaNV · NRS ch. 361 Tax Deed deed only None post-deed highest-bid 671 co. D 39
43 OregonOR · ORS ch. 275/312 Tax Deed deed only None for buyer highest-bid 82 co. D 39
44 UtahUT · Utah Code ch. 59-2 Tax Deed deed only None highest-bid 272 co. D 39
45 VirginiaVA · Va. Code §58.1-3965 Tax Deed deed only None after sale highest-bid 21 co. D 39
46 AlaskaAK · AS ch. 29.45 Tax Deed deed only 1 year min highest-bid 101 co. D 39
47 MontanaMT · Mont. Code §15-17 Tax Lien 12% 3 years n/a — D 38.9
48 KansasKS · K.S.A. ch. 79, art. 28 Tax Deed deed only None highest-bid 181 co. D 37
49 OklahomaOK · 68 O.S. ch. 40 Tax Lien 8% 2 years premium 1766 co. D 33.7
50 South DakotaSD · SDCL ch. 10-23/25 Tax Lien 10% 3 years bid-down — D 30.9

The TLS Index is the TaxLienSimple Index — a 0–100 composite built from statutory terms and the inventory we track, to compare jurisdictions at a glance. It is a research guide, not a yield, a guarantee, or investment advice; realized returns depend on competition, redemption and your own due diligence. Verify every figure with the county before bidding. Statute references under each state identify the governing law — * marks a research-verified section; the rest cite the governing chapter, which you should confirm against the current state code.

See the actual parcels — not just the rules

We track 201,306 live tax-lien, deed and foreclosure parcels across 600 counties. Search by county, redemption window and opening bid.

Browse live auction inventory →

What the affiliate lists skip: the real risks

Surviving liens — the #1 profit-killer

A tax sale usually wipes private mortgages, but government liens survive: IRS federal tax liens (the IRS gets a 120-day redemption right — it almost never exercises it, but the lien clouds title), plus municipal water/sewer, demolition, and mowing liens. Investors have bought a "$45k house worth $120k" only to find a $38,000 IRS lien attached. Always pull a title commitment before bidding.

Redemption risk (redeemable-deed states)

In Texas, Georgia, Tennessee and similar states you rarely end up owning the property — the owner usually redeems and you collect the penalty. That's fine if you wanted the yield, but if you bought hoping to keep the house, plan for redemption as the base case. In Georgia, cleanup/demolition liability can attach during the 12-month redemption window.

Foreclosure & quiet-title cost

The certificate isn't the finish line. To get a marketable deed you often need a foreclosure or quiet-title action — $1,500–$4,000 in legal fees and 6–12 months, and Illinois is singled out as the most involved process. Price this in before you bid.

Worthless-parcel traps

Experienced buyers instantly skip drainage/stormwater parcels, HOA common areas ("a legal nightmare"), non-buildable slivers, road right-of-ways, landlocked lots with no recorded access, and clerical-error government parcels. A cheap lien on a parcel nobody can use is not a deal.

Home-equity-theft rules (post-Tyler v. Hennepin)

Since the 2023 Supreme Court ruling, many states now must return surplus equity to the former owner rather than letting the buyer/county keep it — changing the math in several former "keep-the-windfall" states. Rules are still shifting state by state; verify current surplus-return law.

Frequently asked

Which states have the highest tax-lien interest rates?

By statutory maximum, Illinois (~36%/yr via an 18%-per-6-month penalty), Iowa (24%) and Maryland (up to 24%) lead the interest-bearing lien states, followed by Florida, Arizona, Mississippi, Ohio, New Jersey and D.C. at 16–18%. Texas (25%) and Georgia (20%) pay higher flat penalties as redeemable-deed states. In bid-down states, competition often pushes the realized rate well below the maximum.

Tax lien vs. redeemable deed vs. tax deed — what's the difference?

A tax lien is a certificate that earns statutory interest until the owner redeems. A redeemable deed gives you the property, but the owner can reclaim it within a window by paying a flat penalty. A tax deed is the property outright — no interest, usually no redemption; your return is the discount to market value.

Does a high statutory rate guarantee a high return?

No. In bid-down states (AZ, FL, NJ, AL, CO) investors compete by accepting a lower rate, so realized yield in crowded counties can fall to 1–5% despite a 16–18% ceiling. Fixed-rate and penalty states (IA, IL, GA, TX) protect the headline return.

The TaxLienSimple Index is a 0–100 research guide built from statutory terms and the inventory we track — not a yield, a guarantee, or investment advice. Realized returns depend on competition, redemption and your own due diligence. Verify every figure with the county before bidding.

© 2026 TaxLienSimple · The TaxLienSimple Index is compiled from state tax statutes and county treasurer/tax-collector offices; live inventory counts reflect parcels currently tracked by TaxLienSimple and update continuously. Nothing here is investment or legal advice.