Alternative Investments for

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Up to 16-36% Per Year as Mandated by State Law

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How Much do Tax Lien Certificates Earn?

State law mandates the interest rates, the penalties, and the processes for auctioning and redeeming tax lien certificates as well as foreclosing on real estate.

 

Not all states offer tax lien certificates - about half of U.S. states offer them.  The other half of the states offer tax deeds (where the actual property title is auctioned) or they are considered a “hybrid” state.

 

Texas is such a “hybrid” state where the investor becomes property owner at the auction, but the previous property owner has the opportunity to redeem the property by fulfilling their original tax obligation plus paying all accrued penalties.

Some of the more popular tax lien states are:

Depending upon the state in which you are investing, a tax lien certificate can earn high rates of interest or penalty fees - or both.

State

Interest Rate and/or Fees

Arizona

16% per annum

Florida

18% per annum (min 5% penalty)

Illinois

18% penalty per 6 months

Iowa

24% per annum

Mississippi

12% per annum and 5% penalty

Nebraska

14% per annum

New Jersey

18% per annum and 2-6% penalty

Texas

25% penalty per annum

Wyoming

15% per annum and 3% penalty