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The following table contains information on the states that use tax lien sales as a method for collecting delinquent property tax. 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.

Tax Lien States

State	Auction Bidding Type	Redemption Period	Post-Sale Interest Rate (per annum)	Post-Sale Flat Penalty
Alabama*	Premium	3 Years	12%	None
Arizona	Bid Down Interest	- 3 Years for Judicial Foreclosure - 5 Years for Non-Judicial Foreclosure	16% (maximum)	None
Colorado	Premium	3 Years	9% + Federal Discount Rate	None
Florida*	Bid Down Interest	2 Years	18%	None
Illinois	Bid Down Interest	- 6 months for Vacant Land at Scavenger Sale - 2 Years for Unoccupied Residences or Vacant Land - 2 1/2 Years for Occupied Residences - 3 Years for Occupied Residences with 6 or more Units	18% (maximum)	10% penalty applied immediately and every six months thereafter - 0-6 Months: 10% - 6-12 Months: 20% (cumulative) - 12-18 Months: 30% (cumulative) - 18-24 Months: 40% (cumulative) - 24-30 Months: 50% (cumulative) - 30-36 Months: 60% (cumulative)
Indiana	Premium	1 Year	10% (only earned on premium amount)	- 10% penalty applied immediately after sale - 15% penalty applied six months after sale
Iowa	Bid Down Percentage of Ownership	2 Years	24%	None
Kentucky	Premium	1 Year	12%	None
Maryland	Premium	- 6 Months for Improved and Vacant Land - 60 Days for Improved Land not meeting Building Code	6%-20% (Varies by County; Lowest Allowed - 6%; Highest Allowed - 24%)	None
Mississippi	Premium	2 Years	18%	5% penalty applied immediately after sale
Missouri	Premium	2 Years	10%	None
Montana	Rotational	- 3 Years for Improved Land - 2 Years for Vacant Land	10%	None
Nebraska	Bid Down Percentage of Ownership	3 Years	14%	None
New Jersey	Bid Down Interest (to 0%) and then Premium	2 Years	18% (maximum)	2%-6% penalty applied immediately after sale (rate is dependent on municipality and lien amount)
New York*	Premium	2 Years	12%	None
Ohio*	Bid Down Interest	3 Years	18% (maximum)	None
Rhode Island	Premium	1 Year	None	- 10% penalty applied immediately after sale - An additional 1% penalty applied in months 7-12 of the redemption period
South Dakota	Bid Down Interest	3 Years	10%	None
West Virginia	Premium	17 Months	12%	None
Wyoming	Rotational	4 Years	15%	3% penalty applied immediately after the sale

* This state also holds tax deed sales