Compare / Georgia vs Texas

Georgia vs Texas Tax Lien Investing (2026)

Verdict

For a retail investor, Texas edges it overall (6.7/10 vs 5.7/10). The biggest single difference is effective yield: Georgia scores 8, Texas scores 10. Neither is "best" for everyone — match the state to your goal below.

Georgia5.7/10
System:
redeemable deed
Max rate:
20% penalty flat
Redemption:
12mo
Texas6.7/10
System:
redeemable deed
Max rate:
25% flat premium yr-1 / 50% yr-2 (homestead-ag); 25% within 180d for other property
Redemption:
180d/2yr

Head-to-head: 9 dimensions

Effective yieldTexas wins
Georgia8

Flat 20% premium in yr 1 even on day-1 redemption; +10%/yr thereafter

Texas10

25% flat within 180d non-homestead (~50%+ annualized); 50% yr2 homestead

Penalty structureTexas wins
Georgia9

20% of full bid due on any first-year redemption (O.C.G.A. 48-4-42)

Texas10

25% premium due even on day-1 redemption (34.21); 50% in year 2

Redemption speedTexas wins
Georgia7

12mo minimum; purchaser may then bar redemption via notice

Texas9

180d for most property; 2yr only homestead/ag/minerals

Auction accessTexas wins
Georgia5

First-Tuesday courthouse-steps sales; only some counties on GovEase

Texas6

First-Tuesday sheriff sales statewide; growing online county adoption

Low competitionGeorgia wins
Georgia5

Metro Atlanta deeds bid up hard; rural courthouse sales thinner

Texas4

Metro auctions packed; bid-ups erode the deed discount

Low capital entrytie
Georgia3

Redeemable deed: full winning bid price due upfront

Texas3

Full property price in certified funds at auction

Process safetyTexas wins
Georgia4

Barment notices (48-4-45) then quiet title needed for clean deed

Texas6

Post-judgment deed with possession; quiet title often still needed

Legal stabilitytie
Georgia8

Premium structure unchanged since 2002 amendments

Texas8

Tax Code ch.34 stable for decades

OTC availabilityTexas wins
Georgia2

No OTC program; unsold parcels rare

Texas4

Struck-off resale lists from taxing units and their law firms

Choose Georgia if…

it doesn't clearly out-score Texas on any single dimension — see the full Georgia guide.

Choose Texas if…

  • you want stronger effective yield25% flat within 180d non-homestead (~50%+ annualized); 50% yr2 homestead
  • you want stronger redemption speed180d for most property; 2yr only homestead/ag/minerals
  • you want stronger process safetyPost-judgment deed with possession; quiet title often still needed

Frequently asked

Is Georgia or Texas better for tax lien investing?
Texas scores higher overall (6.7/10 vs 5.7/10) on our nine-dimension rubric. But the right pick depends on your goal — Georgia leads on some dimensions, Texas on effective yield.
Which state has the higher tax lien return, Georgia or Texas?
Georgia: 20% penalty flat. Texas: 25% flat premium yr-1 / 50% yr-2 (homestead-ag); 25% within 180d for other property. On realistic effective yield after competition, Texas scores higher (8 vs 10).
Which has the shorter redemption period?
Georgia allows 12mo; Texas allows 180d/2yr. Shorter redemption recycles your capital faster.