Colorado vs New Jersey Tax Lien Investing (2026)
Statutes verified Oct 23, 2026
For a retail investor, Colorado edges it overall (5.1/10 vs 5/10). The biggest single difference is otc availability: Colorado scores 8, New Jersey scores 4. Neither is "best" for everyone, match the state to your goal below.
- System:
- lien
- Max rate:
- Fed discount rate +9 pts, set Sept 1: 13% for 2026 liens, 14% for 2025; premium bids earn 0%
- Redemption:
- Holder may apply for deed auction 3yrs after sale; owner redeems until deed issues
- System:
- lien
- Max rate:
- Bid down from 18% to 0%, then cash premium (earns 0%); plus 2/4/6% redemption penalty to holder
- Redemption:
- Until foreclosure judgment is final; private holder may sue 2yrs after sale (municipal 6mo)
Head-to-head: 9 dimensions
13% for 2026 liens (14% in 2025) but premium bids earn nothing and are not refunded
18% ceiling bid to 0% then cash premiums in good towns; net yields thin
Simple interest only; rate reset yearly at discount rate +9 pts (39-12-103)
statutory 2-6% redemption penalty plus interest survives even early payoff
3yrs from sale before treasurer's deed application
private holder waits 2 yrs to foreclose (6 mo municipal/abandoned)
Most counties run online sales (RealAuction/GovEase); county-level auctions
hundreds of municipal sales yearly, many run on online platforms
Online premium bidding is aggressive; premiums erode net yield
institutional funds dominate; rates routinely bid to 0% plus premium
Certificates sell at taxes+fees; small liens plentiful in rural counties
small liens exist but premium bids add real cash outlay
HB24-1056 deed path now ends in public auction; holder may get cash, not land
judicial foreclosure, strict notice; premium forfeited if lien sits 5 yrs
Post-Tyler HB24-1056 (eff. 7/2024) rewrote the treasurer's deed process
2024 post-Tyler amendments reworked foreclosure/surplus procedure
County-held certificates assignable OTC from treasurers year-round
municipal-held liens assignable case-by-case; no statewide OTC list
Choose Colorado if…
- you want stronger otc availability, County-held certificates assignable OTC from treasurers year-round
- you want stronger low capital entry, Certificates sell at taxes+fees; small liens plentiful in rural counties
Choose New Jersey if…
- you want stronger penalty structure, statutory 2-6% redemption penalty plus interest survives even early payoff
- you want stronger redemption speed, private holder waits 2 yrs to foreclose (6 mo municipal/abandoned)