Last Updated on September 9, 2025
Table of contents
Start with Buying Tax Liens
Tax liens let you earn interest by paying someone else’s overdue property taxes. When the owner pays you back, you collect the taxes plus interest. This guide explains how to start with buying tax liens in simple words.
What Are Tax Liens and Tax Deeds?
A tax lien certificate is a claim on property for unpaid taxes. It does not make you the owner; the homeowner keeps the property if they repay their taxes and interest. Experts suggest choosing the type of property you want and then asking the local tax office for auction dates and rules.
States handle tax sales differently. Georgia sells tax deeds; buyers pay the taxes, and the owner has one year to pay back the debt with 20 % interest, increasing by 10 % each year.
Florida sells only tax lien certificates; the maximum interest rate there is 18 %. In most cases, the owner pays back the debt, so foreclosure is rare.
Why Start with Buying Tax Liens?
Tax liens can pay high returns. Depending on the state, interest rates range from 4 % to 36 %. Auctions are often online, so you can invest from home. Remember that the final rate is set by bidding; the certificate goes to the bidder who accepts the lowest interest rate. Research is essential because rules and risks vary by state.
Comparing Three Examples
| Example | Max interest | Redemption period | Notes |
| Florida | Up to 18 % | Varies by county | Unsold liens are transferred to the county and continue to earn interest. |
| Georgia | 20 % first year; +10 % per year | 1 year | Investor buys a tax deed, not a certificate. |
| General | 4 %–36 % | 6 months–3 years | Check local law. |
Steps to Start with Buying Tax Liens
- Learn and ask questions.
Decide what type of property you want and call the county tax office for auction schedules.Decide what type of property you want and call the county tax office for auction schedules.
- Register for the auction.
Many counties require you to sign up and may ask for a deposit.
- Research each property.
Look at county records, maps and sales data, check for other liens or bankruptcies, and estimate market value.
- Know the rules.
Every state sets its own redemption period and interest rate. Georgia offers 20 % interest for the first year; Florida offers up to 18 %.
- Bid and follow through.
You win by offering the lowest interest rate. Pay on time, notify the owner and track deadlines. Rarely, if the owner does not pay, you may apply for a tax deed.
- Get help if needed.
Working with real estate professionals or attorneys can simplify the process.
Frequently Asked Questions
Do I own the property if I buy a tax lien? No. You only own the lien; the property belongs to the owner unless they do not pay back the taxes.
Why do interest rates vary? Each state sets a maximum rate, and auctions award the certificate to whoever accepts the lowest rate. Rates can be as high as 36 %.
Can I start with buying tax liens online? Yes. Many counties hold online auctions. You need to register and follow local rules.
Conclusion
Starting with buying tax liens is an accessible way to invest. Learn your local rules, research each property and understand the redemption period and interest rate. By doing your homework and bidding wisely, you can start with buying tax liens and earn steady returns while helping communities collect unpaid taxes.
There are critically important steps to take when buying a tax lien or tax deed, and Coach Josh is going to share with you how to start with Tax Liens and why that is such an important angle to take.
I want you to dive into this video now, as it’s a REALLY great intro to tax liens and this whole business, so make sure you watch it right now.
Talk soon,
Dustin Hahn
PS: This video is in a special location, so get ready for some beautiful scenery….(And no, I don’t mean Josh 😉 )
