Tax Lien Investing Guide

What Tax Liens and Tax Deeds Are

When a property owner doesn't pay their property taxes, the county doesn't just shrug and move on. The government needs that money to fund schools, roads, and services. So they take action.

A tax lien is a legal claim the government places on a property when taxes go unpaid. The county then sells that lien to investors at auction. When you buy the lien, you're essentially paying the owner's overdue taxes — and in return, the property owner must pay you back with interest to clear the lien. If they don't pay within a set timeframe (called the redemption period), you may have the right to foreclose and take ownership.

A tax deed is different. Instead of selling the lien, the government takes the property outright after the redemption period expires and then auctions the property itself directly. When you win a tax deed auction, you're buying the property — not just a claim against it.

The Difference Between Lien States and Deed States — Georgia vs. Florida

This is the most important thing you need to know before you bid anywhere.

Georgia — Tax Deed State (Sort Of). Georgia is technically a redeemable deed state. The county holds a tax sale (usually run by the county Sheriff or Tax Commissioner). The winning bidder receives a tax deed — they effectively own the property. But the original owner has a right of redemption — they can pay you back and reclaim the property. In Georgia, the redemption period is 12 months from the date of sale. The redemption amount includes what you paid PLUS a 20% penalty on the amount paid (not an annual rate — a flat 20%). That 20% is not annualized. If the owner redeems in 3 months, you still get the full 20%. That's powerful.

Florida — Tax Lien State. Florida runs a tax lien certificate system. The county holds an online auction (usually in May/June) for properties with unpaid taxes. Bidders compete by bidding down the interest rate — the lowest rate wins the certificate. The starting interest rate is 18% per year, and bidders can go as low as 0.25%. The property owner has up to 2 years to redeem. Most Florida tax lien certificates do get redeemed — about 97% of them. But you earn interest on your investment in the meantime.

• Florida auction platforms: LienHub, RealTaxDeed.com, GovEase, and individual county portals
• Georgia tax sales happen: Typically the first Tuesday of each month at the county courthouse
• Georgia redemption penalty: 20% flat — not annualized
• Florida redemption window: Up to 2 years for lien certificates