In Missouri, the interest rate would be 10% on the penalties and taxes owed where a bidder can bid more based on how much you would pay for the actual property. However, the winner will not receive any interest on the overbid. Note that taxes paid will get someone to earn around 6% rather than 10%.
Mississippi Tax Liens
Interest rate in Mississippi is definitely a favorable 18% with a redemption period of 2 years. Tax lien sales are held on the last Monday of August. Though it also uses competitive bidding, the overbid’s amount will not be reimbursed and the interest will not be earned on its overbid amount.
Maryland Tax Liens
Maryland has an interest rate of 6% to 24% and varies on each county. The redemption period could be 6 months up to 2 years as each of the counties have varied rules. Competitive bidding is also used in tax lien certificate auctions.
Louisiana Tax Liens
Louisiana is considered one of the best states to invest in tax lien certificates. Its interest rate is 12% plus a penalty of 5% which totals into 17%. The redemption period is 3 years and the tax lien auctions are dependent on Parish. The sales are through competitive bidding based on interest rate.
Kentucky Tax Liens
The interest rate in Kentucky is 12% while the redemption period is 1 year. The tax lien sale schedules may vary depending on the county itself but all the sales are won by competitive bidding on the interest rate.
Iowa Tax Liens
One of the most popular tax lien states is Iowa. Its interest rate per year is 24% and its redemption period is 1.75 years. The tax lien sales are held in June and all its auctions are through round robin bidding. The bidder can also opt to bid on how much percentage he can take on the property.
Indiana Tax Liens
Indiana is one of the preferred states to invest in real estate. Aside from the fact that the interest rate is favorable and flat free, the redemption period is short unlike others.
The interest rate can be as high as 25% and 10% flat for the first 6 months. The second 6 months can then be 15% and an overbid interest of 10% every year. The redemption period is just 1 year for A and B properties while 120 days for the C properties. There is no right of redemption after sales. Tax lien sales are held in August, September, and in October.
Illinois Tax Liens
Illinois’ interest rate is 24% on farm land and 36% for a full year. County tax sales in Illinois are held in November and the redemption period is 2 years.
Most counties require the bidder to pre-register at least 10 days ahead of the auction schedule.
Florida Tax Liens
Take note, Florida is both a tax deed and tax lien state. The interest rate here is 18% and its redemption period is 2 years. Tax lien sales are held in May and June and one may win an auction through competitive bidding.
Colorado Tax Liens
Colorado’s interest rate is 9% plus with federal discount rate with a three year redemption period. Since the interest rate may get a bid down, it is advisable to be cautious when bidding in popular counties.
