Indiana vs Texas Tax Lien Investing (2026)
For a retail investor, Texas edges it overall (6.7/10 vs 6.4/10). The biggest single difference is low capital entry: Indiana scores 8, Texas scores 3. Neither is "best" for everyone — match the state to your goal below.
- System:
- lien
- Max rate:
- 10%/15% flat penalty on min bid + 5%/yr on overbid (premium bidding, not bid-down)
- Redemption:
- 1yr
- 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
10-15% flat penalty on min bid inside 1yr; 5%/yr overbid drags blended yield
25% flat within 180d non-homestead (~50%+ annualized); 50% yr2 homestead
Flat 10% (redeemed ≤6mo) / 15% (6-12mo) of min bid regardless of day
25% premium due even on day-1 redemption (34.21); 50% in year 2
1yr from sale; 120 days at commissioners' certificate sales
180d for most property; 2yr only homestead/ag/minerals
Many counties run fall sales online via SRI/Zeus Auction
First-Tuesday sheriff sales statewide; growing online county adoption
Premium bidding pushes overbids up in Marion/Lake; rural sales thinner
Metro auctions packed; bid-ups erode the deed discount
Min bids often a few hundred dollars of taxes plus costs
Full property price in certified funds at auction
IC 6-1.1-25-4.5/4.6 notices + court petition; defects forfeit the deed
Post-judgment deed with possession; quiet title often still needed
IC 6-1.1-24/25 framework stable with periodic tweaks
Tax Code ch.34 stable for decades
Commissioners' certificate sales resell leftovers at reduced min bids
Struck-off resale lists from taxing units and their law firms
Choose Indiana if…
- you want stronger low capital entry — Min bids often a few hundred dollars of taxes plus costs
- you want stronger otc availability — Commissioners' certificate sales resell leftovers at reduced min bids
Choose Texas if…
- you want stronger effective yield — 25% flat within 180d non-homestead (~50%+ annualized); 50% yr2 homestead
- 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