If you’re looking at tax deed investing, there’s one critical detail that can make or break your strategy: the redemption period.
Here’s what most new investors don’t realize — winning a tax deed auction doesn’t always mean you own the property immediately. In many states, the original owner has a window of time to reclaim their property by paying back what they owe, plus fees and penalties. That’s the redemption period.
The catch? It varies wildly from state to state. Some states hand you the keys right away. Others make you wait months or even years before that property is truly yours.
Understanding redemption periods is essential for planning your investment timeline, managing your cash flow, and avoiding costly surprises. Let’s break down the redemption periods for all 50 states so you know exactly what to expect.
What Is a Redemption Period, Anyway?
A redemption period is the window of time after a tax deed sale when the previous owner can reclaim their property by paying back the taxes, interest, penalties, and whatever fees piled up. It’s basically their safety net.
For you as an investor? It’s a waiting game where your money is tied up and you can’t touch, sell, or renovate the property until that window closes or they redeem it.
Now, not every state has one. And the ones that do? The rules are all over the place.
The Complete 50-State Breakdown
Here’s every state, whether they sell tax liens or tax deeds, and what redemption period you’re looking at.
States with NO Redemption Period (You Own It Right Away)
These are the states where once the gavel drops, the property is yours. No waiting, no wondering.
- Alaska – Tax Deed, No Redemption
- California – Tax Deed, No Redemption
- Florida – Tax Deed, No Redemption (though it also sells tax liens with 2-year redemption)
- Idaho – Tax Deed, No Redemption
- Kansas – Tax Deed, No Redemption
- Maine – Tax Deed, No Redemption
- Michigan – Tax Deed, No Redemption
- Minnesota – Tax Deed, No Redemption
- Nevada – Tax Deed, No Redemption
- New Hampshire – Tax Deed, No Redemption
- New Mexico – Tax Deed, No Redemption
- North Carolina – Tax Deed, No Redemption
- North Dakota – Tax Deed, No Redemption
- Ohio – Tax Deed, No Redemption
- Oklahoma – Tax Deed, No Redemption
- Oregon – Tax Deed, No Redemption
- Pennsylvania – Tax Deed, No Redemption (except Philadelphia and Allegheny County may have redemption)
- Utah – Tax Deed, No Redemption
- Virginia – Tax Deed, No Redemption
- Washington – Tax Deed, No Redemption
- Wisconsin – Tax Deed, No Redemption
States with SHORT Redemption Periods (Under 1 Year)
These states give the original owner a few months to get their act together.
- Arkansas – Tax Deed, 90 days (2 years if owner is disabled or active military)
- Connecticut – Tax Deed, 6 months (60 days for abandoned property)
- Delaware – Tax Deed, 60 days
- District of Columbia – Tax Lien, 6 months
- Hawaii – Tax Deed, 1 year (if deed recorded within 60 days of sale)
- Maryland – Tax Lien, 6 months (9 months for owner-occupied in Baltimore City)
- Massachusetts – Tax Deed, 6 months (2 years if partial payment made during redemption)
- Texas – Tax Deed, 6 months for non-homestead / 2 years for homestead or agricultural property
States with 1-YEAR Redemption Periods
- Georgia – Tax Deed, 1 year (but judicial in-rem sales have no redemption)
- Indiana – Tax Lien, 1 year
- Iowa – Tax Lien, 1 year / 9 months (9 months if previously offered, 3 months if vacant/abandoned)
- Kentucky – Tax Lien, 1 year
- Missouri – Tax Lien, 1 year
- Rhode Island – Tax Lien, 1 year
- South Carolina – Tax Lien, 1 year
- Tennessee – Tax Deed, 1 year (120 days if vacant/abandoned with court petition)
- Vermont – Tax Lien, 1 year
States with 18-MONTH Redemption Periods
- West Virginia – Tax Lien, 18 months
States with 2-YEAR Redemption Periods
- Mississippi – Tax Lien, 2 years
- New Jersey – Tax Lien, 2 years
- New York – Tax Lien, 2 years (1 year for vacant/abandoned)
States with 3-YEAR Redemption Periods
- Alabama – Tax Lien, 3 years (plus additional 3 years of possession required for tax certificates)
- Arizona – Tax Lien, 3 years
- Colorado – Tax Lien, 3 years
- Illinois – Tax Lien, 3 years
- Louisiana – Tax Lien, 3 years
- Montana – Tax Lien, 3 years
- Nebraska – Tax Lien, 3 years
States with 3-4 YEAR Redemption Periods
- South Dakota – Tax Lien, 3 years if in city limits / 4 years outside city limits
States with 4-YEAR Redemption Periods
- Wyoming – Tax Lien, 4 years (longest in the country)
Tax Liens vs. Tax Deeds: What’s the Difference?
Quick clarification because this confuses everyone:
Tax Deed States – You’re buying the actual property. Once the redemption period ends (if there is one), you own it outright.
Tax Lien States – You’re buying the debt. The property owner still owns the property, but you hold a lien on it. If they don’t pay you back with interest during the redemption period, you can foreclose and potentially claim the property. But that takes way longer and involves more steps.
The “Redeemable Deed” States (Hybrid Headaches)
A few states sell tax deeds but still have a redemption period. These are called “redeemable deed” states, and they’re a bit of a middle ground:
- Georgia – 1 year (20% penalty if redeemed in year one, 30% if after that)
- Texas – 6 months to 2 years depending on homestead status (25%-50% penalty on redemption)
- Tennessee – 1 year
- Hawaii – 1 year
- Delaware – 60 days
- Connecticut – 6 months
The upside? If the owner redeems, you get your money back plus a fat penalty. In Georgia, that’s a flat 20% return in under a year. In Texas, it can be 25%-50% depending on the property type.
The downside? Your money’s tied up and you can’t do anything with the property during that time.
What This Means for You as an Investor
If you’re hunting for fast flips and immediate access to properties, stick to states with no redemption period. You win the auction, you own it, you sell it or rent it. Done.
If you’re okay with playing the waiting game for potentially higher returns, redeemable deed states like Georgia and Texas can pay you handsomely if the owner redeems. But if they don’t, you still end up with the property, you just have to wait.
If you’re looking at tax lien states, understand that you’re investing in debt, not property. Your payout comes from the interest rate, and those redemption periods can stretch from 6 months to 4 years. You’re basically a bank now.
The Bottom Line
Redemption periods aren’t a dealbreaker; they’re just something you need to factor into your strategy. Some investors love them because of the penalty payouts. Others avoid them like the plague because they want immediate control.
Know your state. Know the rules. And for the love of everything real estate, don’t assume that winning the auction means the property is 100% yours on day one.
Do your homework, plan your cash flow around these timelines, and you’ll be just fine.
Now get out there and start bidding smart.