Alabama vs Arizona Tax Lien Investing (2026)
For a retail investor, Arizona edges it overall (6/10 vs 5.6/10). The biggest single difference is legal stability: Alabama scores 5, Arizona scores 9. Neither is "best" for everyone — match the state to your goal below.
- System:
- lien
- Max rate:
- 12% bid-down
- Redemption:
- 3yr min 10yr
- System:
- lien
- Max rate:
- 16%/yr simple bid-down
- Redemption:
- 3yr min 10yr max
Head-to-head: 9 dimensions
12% ceiling bid down in 1% steps on GovEase; hot liens go to low single digits
16% ceiling but big-county CP rates bid to low single digits online
Simple interest at bid rate only; no flat penalty on early redemption
Simple interest at bid rate from March 1 (ARS 42-18153); no penalty floor
Owner may redeem anytime; foreclosure only after 3yrs, cert expires at 10yrs
3yr minimum hold before Superior Court foreclosure (ARS 42-18201)
Most counties auction liens online via GovEase; OTC pickup at county offices
County sales online via RealAuction (Pima 2026); near-statewide coverage
Online GovEase sales draw national bidders; metro liens bid near 0%
Heavily institutional online sales; funds dominate Maricopa/Pima
Liens sell at back taxes; many certificates a few hundred dollars
CP liens start at back taxes; many certificates a few hundred dollars
Judicial foreclosure + quiet title; 2018-regime redemption litigation traps
Judicial foreclosure required after 3yrs; well-worn process but adds cost
Lien-auction regime only since 2018 (40-10-180+), amended 2022; counties converting
ARS 42-18101 to 42-18204 regime stable for decades; predictable case law
Unsold liens sold over the counter at revenue commissioner offices (e.g. Mobile)
State CP assignments sold OTC online Apr 1-Dec 15 (Pima via RealAuction)
Choose Alabama if…
it doesn't clearly out-score Arizona on any single dimension — see the full Alabama guide.
Choose Arizona if…
- you want stronger legal stability — ARS 42-18101 to 42-18204 regime stable for decades; predictable case law
- you want stronger process safety — Judicial foreclosure required after 3yrs; well-worn process but adds cost