Arizona vs Florida Tax Lien Investing (2026)
For a retail investor, Florida edges it overall (6.6/10 vs 6/10). The biggest single difference is redemption speed: Arizona scores 2, Florida scores 5. Neither is "best" for everyone — match the state to your goal below.
- System:
- lien
- Max rate:
- 16%/yr simple bid-down
- Redemption:
- 3yr min 10yr max
- System:
- lien
- Max rate:
- 18% max 5% min
- Redemption:
- 2yr
Head-to-head: 9 dimensions
16% ceiling but big-county CP rates bid to low single digits online
18% ceiling bid down to ~0.25% online; 5% min penalty floor rescues most redemptions
Simple interest at bid rate from March 1 (ARS 42-18153); no penalty floor
5% minimum penalty on redemption regardless of bid, but 0% winning bids earn nothing
3yr minimum hold before Superior Court foreclosure (ARS 42-18201)
2yr hold before certificate holder can apply for tax deed
County sales online via RealAuction (Pima 2026); near-statewide coverage
Nearly all 67 counties auction certs online (LienHub/RealAuction) each June
Heavily institutional online sales; funds dominate Maricopa/Pima
Heavily institutional; funds bid rates to 0.25% in metro counties
CP liens start at back taxes; many certificates a few hundred dollars
Certificates start at a few hundred dollars; small liens plentiful
Judicial foreclosure required after 3yrs; well-worn process but adds cost
After 2yr must apply for tax deed; property goes to deed auction, not to holder
ARS 42-18101 to 42-18204 regime stable for decades; predictable case law
Ch.197 certificate framework stable for decades, minor tweaks only
State CP assignments sold OTC online Apr 1-Dec 15 (Pima via RealAuction)
County-held certs struck at 18% purchasable OTC through tax collectors
Choose Arizona if…
- you want stronger otc availability — State CP assignments sold OTC online Apr 1-Dec 15 (Pima via RealAuction)
Choose Florida if…
- you want stronger redemption speed — 2yr hold before certificate holder can apply for tax deed
- you want stronger penalty structure — 5% minimum penalty on redemption regardless of bid, but 0% winning bids earn nothing