Florida vs Illinois Tax Lien Investing (2026)

18% ceiling bid down to ~0.25% online; 5% min penalty floor rescues most redemptions

Penalty repeats each 6mo (max 9%/period since 2022) but Cook bids near 0%; post-HB 4537 surplus rules reduce windfall upside

5% minimum penalty on redemption regardless of bid, but 0% winning bids earn nothing

Full 6-month penalty tranche owed even if redeemed on day 1 of period

2yr hold before certificate holder can apply for tax deed

3yr default (1yr vacant/commercial); new rules apply to certificates issued on or after Jul 10, 2026

Nearly all 67 counties auction certs online (LienHub/RealAuction) each June

County-by-county sales with registration/deposits; Cook uses R.A.M.S. sealed bids

Heavily institutional; funds bid rates to 0.25% in metro counties

Institutional buyers dominate; penalty bid to 0% on quality parcels

Certificates start at a few hundred dollars; small liens plentiful

Individual liens can be small, but deposits and registration add friction

After 2yr must apply for tax deed; property goes to deed auction, not to holder

Strict take-notice/petition traps; sale-in-error can void the investment

Ch.197 certificate framework stable for decades, minor tweaks only

HB 4537 (Jul 2026) rewrote key collection provisions; post-Tyler surplus rules still settling; new regime untested in court

County-held certs struck at 18% purchasable OTC through tax collectors

Unsold/forfeited liens resold via county trustee lists