Redeemable Tax Deed States
About this Page
The following table contains information on states that use redeemable tax deeds as the delinquent tax collection method. Each column in the table is described below:- Auction Bidding Type: This column indicates the most common bidding type used statewide at online and public tax auctions. Bidding types can vary by jurisdiction. For more information on auction bidding types, see the Auction Bidding Methods article.
- Redemption Period: The redemption period for a tax lien or a redeemable tax deed generally starts as soon as the property is first offered for sale through a tax lien or tax deed sale. The property owner must redeem the property (pay all back taxes, interest, penalties, and costs) within the redemption period or risk losing the property to the investor. In most states, the investor may begin the foreclosure process, with the goal of obtaining the property, once the redemption period ends.
- Post-Sale Interest Rate: This is the per annum simple interest rate that accrues on tax lien certificates or redeemable tax deeds. Essentially, this percentage is the return on investment (ROI) for the tax lien or tax deed investor. There is no interest rate associated with non-redeemable tax deed states since there is no redemption period. However, for redeemable tax deed states, interest does accrue after the purchase of a tax deed and is awarded to the tax deed investor if the property owner redeems the tax deed (pays all back taxes, interest, penalties, and costs) before the expiration of the redemption period.
- Post-Sale Flat Rate Penalty: A flat rate penalty is a penalty that is generally assessed immediately after the sale and added to redemption amount that the taxpayer must pay to redeem a tax lien certificate or redeemable tax deed. Some states assess additional flat rate penalties at specified periods through the redemption period.
Redeemable Tax Deed States
| State | Auction Bidding Type | Redemption Period | Post-Sale Interest Rate (per annum) | Post-Sale Flat Penalty |
| Connecticut | Premium | 1 Year | 18% | None |
| Delaware | Premium | 60 Days | 15% | None |
| District of Columbia | Premium | 6 Months | 18% | None |
| Georgia | Premium | 1 Year | None | - 20% flat penalty applied immediately after sale - 10% flat penalty applied at the start of each subsequent year (if tax deed holder "exercises" the extended redemption period) |
| Hawaii | Premium | 1 Year | 12% | None |
| Louisiana | Bid Down Percentage of Ownership | 3 Years | 12% | 5% flat penalty applied immediately after sale |
| North Dakota | Premium | 3 Years | 12% | None |
| South Carolina | Premium | 1 Year | None | - 3% flat penalty applied immediately after the sale, and also at the start of the fourth month, the seventh month, and the tenth month during the redemption period |
| Tennessee | Premium | 1 Year | 10% | None |
| Texas | Premium | - 6 Months for Non-Homestead - 2 Years for Homestead | None | - 25% flat penalty applied immediately after the sale - 50% flat penalty applied at the start of second year (applicable to Homestead only) |
| Vermont | Moving Target | 1 Year | 12% | None |