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How do I buy a tax lien in Florida?

Author

Sarah Oconnor

Updated on March 05, 2026

How do I buy a tax lien in Florida?

Contact the county tax collector for upcoming tax-lien sale information. They will provide information about the tax liens available and the auction process. Research the liens available for the auction. Take into consideration the delinquent amount, property location and how much you would like to bid.

Also know, how do tax liens work in Florida?

Florida Tax Lien Sales

In Florida, the purchaser at a tax lien sale gets a tax certificate and the right to collect the delinquent tax debt from you, plus interest. The winning bidder at the tax lien sale will be the person who charges the lowest interest rate on the debt.

Also, is Florida a tax deed or tax lien state? Tax Deed states auction off the real estate when property owners become delinquent. A Tax Lien state sells tax certificates to investors when homeowners become delinquent. Once the homeowner pays the taxes the investor is paid off their investment plus interest. Florida is a Tax Deed and a Tax Lien state.

Herein, is Buying Tax Liens a good investment?

Property tax liens can be a viable investment alternative for experienced investors familiar with the real estate market. Those who know what they are doing and take the time to research the properties upon which they buy liens can generate substantial profits over time.

Can you buy a house by paying the back taxes?

When homeowners fail to pay their property taxes, some tax jurisdictions choose to hold tax deed home sales to make back the money they are owed. Interested buyers can register to participate as a bidder on these homes in a tax deed auction.

How does a tax lien affect buying a house?

A: The short answer is "no.” The tax lien shouldn't prevent you from buying a home, unless the IRS is required to be in a first-lien position against your prospective home. While the FHA program will probably be the easiest avenue available to you, you could also consider a loan guaranteed by Fannie Mae or Freddie Mac.

How do tax liens make money?

Investors buy the liens in an auction, paying the amount of taxes owed in return for the right to collect back that money plus an interest payment from the property owner. Interest rates vary, depending on the jurisdiction or the state.

What are the best states to buy tax lien certificates?

Which States are the Best for Buying Tax Liens?
  • New York. The Big Apple is also one of the best places to hunt for tax liens to invest in.
  • Arizona. Why should you invest in property tax liens in Arizona?
  • Florida. What makes Florida such a good state for buying tax liens is its location.
  • Is There a Perfect State?

At what age do you stop paying property taxes in Florida?

Exemption for longtime limited-income seniors: If you are 65 years old or older, and have had a permanent Florida residence for at least 25 years, you might be entitled to a 100% exemption. Your eligibility for this exemption depends on the county or city where you live, and your income must be below a specified limit.

Can you buy tax liens in Texas?

Texas doesn't sell tax liens, but it does sell tax-delinquent properties at auction, with a redemption period during which the previous homeowner will have to pay a 25 to 50 percent penalty to recoup the home.

How does buying a tax lien work?

A tax lien property has a legal claim against it due to unpaid property taxes. When a property has a tax lien, it cannot be sold or refinanced until the taxes are paid and the lien is discharged. As an investor, you can purchase a tax lien from the county for properties with unpaid taxes.

How does a tax deed sale work in Florida?

A tax deed sale is the sale of property for past due real estate taxes and fees associated with the sale. Each year, real estate taxes are to be paid by a predetermined date to avoid becoming delinquent. Once delinquent, the Tax Collector holds an auction to pay off the taxes.

What states allow tax lien sales?

According to Ted Thomas, an authority on tax lien certificates and tax deeds, 21 states and the District of Columbia are tax lien states: Alabama, Arizona, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, Mississippi, Missouri, Montana, Nebraska, New Jersey, North Dakota, Ohio, Oklahoma, South Carolina,

What is the difference between a tax lien and a tax deed?

Purchasing a tax lien does not obligate you to pay any future property taxes that become delinquent or pay for other property liabilities. Unlike an investment in a tax lien, an investment in a tax deed requires that your adequately maintain the property until you are able to sell it.

What is special about a tax deed?

A tax deed grants ownership of a property to a government body when the owner fails to pay the associated property taxes. Tax deeds are sold to the highest bidder at auction for a minimum bid of the outstanding taxes plus interest and the costs associated with the sale.

How long can you be delinquent on property taxes in Florida?

2 years

How do tax certificates work in Florida?

A tax certificate is an enforceable first lien against the property for unpaid real estate taxes. The sale allows investors to purchase certificates by paying the tax debt. The sale is conducted in a reverse auction style with participants bidding downward on interest rates starting at 18%.

What is the redemption period in Florida?

In Florida, the redemption period after the foreclosure sale is a brief 10 days. With the help of an experienced foreclosure attorney, those choosing to pursue a pre-foreclosure redemption can take advantage of this window of opportunity and potentially reclaim the house.

What happens if I buy a house with back taxes?

If I Pay Back Taxes on a Property Do I Own It? When you buy a tax lien certificate, you're buying the right to receive a debt payment, not the deed to the house. The homeowner is still the legal owner of the home. If he does not pay the tax debt, then you can foreclose.

What does a tax lien on a house mean?

A lien secures the government's interest in your property when you don't pay your tax debt. A levy actually takes the property to pay the tax debt. If you don't pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.

What happens when a house is sold for back taxes?

If your home was sold in a property tax sale, you might be able to get it back. If the taxes remain unpaid, in most cases, the taxing authority will eventually: sell the lien (and if you don't pay the past-due amount to the purchaser of the lien, that party can foreclose), or.

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