Alabama vs Florida Tax Lien Investing (2026)
Statutes verified Oct 23, 2026
For a retail investor, Florida edges it overall (6.6/10 vs 5.6/10). The biggest single difference is legal stability: Alabama scores 5, Florida 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:
- 18% max, bid down in 0.25% steps; 5% minimum on redemption unless bid is 0%
- Redemption:
- Holder may apply for deed 2yrs after Apr 1 of issue year; certificate expires at 7yrs
Head-to-head: 9 dimensions
12% ceiling bid down in 1% steps on GovEase; hot liens go to low single digits
18% ceiling bid down to ~0.25% online; 5% min penalty floor rescues most redemptions
Simple interest at bid rate only; no flat penalty on early redemption
5% minimum penalty on redemption regardless of bid, but 0% winning bids earn nothing
Owner may redeem anytime; foreclosure only after 3yrs, cert expires at 10yrs
2yr hold before certificate holder can apply for tax deed
Most counties auction liens online via GovEase; OTC pickup at county offices
Nearly all 67 counties auction certs online (LienHub/RealAuction) each June
Online GovEase sales draw national bidders; metro liens bid near 0%
Heavily institutional; funds bid rates to 0.25% in metro counties
Liens sell at back taxes; many certificates a few hundred dollars
Certificates start at a few hundred dollars; small liens plentiful
Judicial foreclosure + quiet title; 2018-regime redemption litigation traps
After 2yr must apply for tax deed; property goes to deed auction, not to holder
Lien-auction regime only since 2018 (40-10-180+), amended 2022; counties converting
Ch.197 certificate framework stable for decades, minor tweaks only
Unsold liens sold over the counter at revenue commissioner offices (e.g. Mobile)
County-held certs struck at 18% purchasable OTC through tax collectors
Choose Alabama if…
- you want stronger otc availability, Unsold liens sold over the counter at revenue commissioner offices (e.g. Mobile)
Choose Florida if…
- you want stronger legal stability, Ch.197 certificate framework stable for decades, minor tweaks only
- you want stronger process safety, After 2yr must apply for tax deed; property goes to deed auction, not to holder
- you want stronger redemption speed, 2yr hold before certificate holder can apply for tax deed