Colorado vs Iowa Tax Lien Investing (2026)
For a retail investor, Iowa edges it overall (6.4/10 vs 5.1/10). The biggest single difference is effective yield: Colorado scores 4, Iowa scores 8. Neither is "best" for everyone — match the state to your goal below.
- System:
- lien
- Max rate:
- Fed discount rate +9 pts, set each Sept 1 (14% for 2025); premium bids earn 0%
- Redemption:
- 3yr from sale before treasurer's deed application
- System:
- lien
- Max rate:
- 2%/month 24%/yr
- Redemption:
- 1yr 9mo
Head-to-head: 9 dimensions
14% (2025) rate but premium bids earn nothing and are not refunded
2%/mo (24%/yr) never bid down; bidding is on % ownership instead
Simple interest only; rate reset yearly at discount rate +9 pts (39-12-103)
Fraction of a month counts as a full month; otherwise straight interest
3yrs from sale before treasurer's deed application
1yr9mo before 90-day expiration notice can be served (~2yr total)
Most counties run online sales (RealAuction/GovEase); county-level auctions
Annual June sale in all 99 counties; many now run online
Online premium bidding is aggressive; premiums erode net yield
Funds flood registrations; random allocation with 1%-ownership bids
Certificates sell at taxes+fees; small liens plentiful in rural counties
Certificates from a few hundred dollars; subsequent taxes also earn 24%
HB24-1056 deed path now ends in public auction; holder may get cash, not land
90-day notice then deed; undivided-interest wins complicate title
Post-Tyler HB24-1056 (eff. 7/2024) rewrote the treasurer's deed process
Ch.446-448 sale/redemption mechanics stable for decades
County-held certificates assignable OTC from treasurers year-round
Adjourned/public-bidder certificates assignable from county treasurers
Choose Colorado if…
- you want stronger auction access — Most counties run online sales (RealAuction/GovEase); county-level auctions
- you want stronger otc availability — County-held certificates assignable OTC from treasurers year-round
Choose Iowa if…
- you want stronger effective yield — 2%/mo (24%/yr) never bid down; bidding is on % ownership instead
- you want stronger legal stability — Ch.446-448 sale/redemption mechanics stable for decades
- you want stronger penalty structure — Fraction of a month counts as a full month; otherwise straight interest