Colorado vs Texas Tax Lien Investing (2026)
Statutes verified Oct 23, 2026
For a retail investor, Texas edges it overall (6.7/10 vs 5.1/10). The biggest single difference is penalty structure: Colorado scores 3, Texas scores 10. 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:
- redeemable deed
- Max rate:
- Homestead, ag or mineral: 25% yr 1, 50% yr 2. Other property: 25% within 180d. Paid to buyer
- Redemption:
- 180d/2yr
Head-to-head: 9 dimensions
13% for 2026 liens (14% in 2025) but premium bids earn nothing and are not refunded
25% flat within 180d non-homestead (~50%+ annualized); 50% yr2 homestead
Simple interest only; rate reset yearly at discount rate +9 pts (39-12-103)
25% premium due even on day-1 redemption (34.21); 50% in year 2
3yrs from sale before treasurer's deed application
180d for most property; 2yr only homestead/ag/minerals
Most counties run online sales (RealAuction/GovEase); county-level auctions
First-Tuesday sheriff sales statewide; growing online county adoption
Online premium bidding is aggressive; premiums erode net yield
Metro auctions packed; bid-ups erode the deed discount
Certificates sell at taxes+fees; small liens plentiful in rural counties
Full property price in certified funds at auction
HB24-1056 deed path now ends in public auction; holder may get cash, not land
Post-judgment deed with possession; quiet title often still needed
Post-Tyler HB24-1056 (eff. 7/2024) rewrote the treasurer's deed process
Tax Code ch.34 stable for decades
County-held certificates assignable OTC from treasurers year-round
Struck-off resale lists from taxing units and their law firms
Choose Colorado if…
- you want stronger low capital entry, Certificates sell at taxes+fees; small liens plentiful in rural counties
- you want stronger otc availability, County-held certificates assignable OTC from treasurers year-round
- you want stronger auction access, Most counties run online sales (RealAuction/GovEase); county-level auctions
Choose Texas if…
- you want stronger penalty structure, 25% premium due even on day-1 redemption (34.21); 50% in year 2
- you want stronger redemption speed, 180d for most property; 2yr only homestead/ag/minerals
- you want stronger effective yield, 25% flat within 180d non-homestead (~50%+ annualized); 50% yr2 homestead