Illinois vs Mississippi Tax Lien Investing (2026)
For a retail investor, Mississippi edges it overall (6.6/10 vs 5.1/10). The biggest single difference is auction access: Illinois scores 5, Mississippi scores 9. Neither is "best" for everyone — match the state to your goal below.
- System:
- lien
- Max rate:
- 9% max penalty bid per 6-month period (P.A. 102-363, eff. 1-1-2022)
- Redemption:
- 1yr (vacant/commercial) to 2.5yr (default)
- System:
- lien
- Max rate:
- 18%/yr (1.5%/mo) on face value; premium/overbid amounts earn 0% and are forfeited
- Redemption:
- 2yr
Head-to-head: 9 dimensions
Penalty repeats each 6mo (max 9%/period since 2022) but Cook bids near 0%
18% (1.5%/mo) on face; overbids earn 0% and dilute real returns
Full 6-month penalty tranche owed even if redeemed on day 1 of period
Interest accrues monthly, so day-1 redemption pays very little
2.5yr default (1yr vacant/commercial); slow capital recycle
2yr redemption before purchaser can pursue the deed
County-by-county sales with registration/deposits; Cook uses R.A.M.S. sealed bids
GovEase online premium-bid sales across most counties (Apr/Aug)
Institutional buyers dominate; penalty bid to 0% on quality parcels
18% flat rate plus easy online access draws funds; heavy overbidding
Individual liens can be small, but deposits and registration add friction
Liens sell at face tax amounts, often a few hundred dollars
Strict take-notice/petition traps; sale-in-error can void the investment
Tax titles voidable on notice defects; chancery process is strict
Max bid halved to 9% in 2022; post-Tyler litigation still reshaping code
Decades-old 1.5%/mo + 2yr redemption scheme, little change
Unsold/forfeited liens resold via county trustee lists
State tax-forfeited land inventory purchasable outside auctions
Choose Illinois if…
- you want stronger penalty structure — Full 6-month penalty tranche owed even if redeemed on day 1 of period
Choose Mississippi if…
- you want stronger auction access — GovEase online premium-bid sales across most counties (Apr/Aug)
- you want stronger legal stability — Decades-old 1.5%/mo + 2yr redemption scheme, little change
- you want stronger low capital entry — Liens sell at face tax amounts, often a few hundred dollars