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

A tax lien certificate gives the investor a claim on the property for the unpaid taxes — the investor earns interest when the owner redeems. A tax deed is actual ownership of the property, which the investor can obtain if the owner fails to redeem the lien within the statutory period. Some states are 'tax lien states' (FL, NJ, OH) and some are 'tax deed states' (TX, GA). A few states use both systems.

What interest rates do tax lien certificates earn?

Interest rates on tax lien certificates vary by state. Florida allows up to 18% annually, New Jersey up to 18%, Ohio up to 18%, and some states allow even higher rates. At auction, investors typically bid down the rate, so actual returns depend on competition. Even bid-down rates often exceed 5-12%, well above savings accounts or CDs.

What does LNTX mean on a tax lien filing?

LNTX is the document type code for a standard Tax Lien filed at the county clerk's office for unpaid property taxes. LNTXNC means Tax Lien Non-Certified — an early-stage filing not yet certified by the court. AFFTX means Tax Affidavit — a sworn statement related to tax obligations that accompanies lien or deed proceedings.

How do I find tax liens for sale near me?

Search for tax liens on KBTaxLiens.com by filtering by your state and county. Our data pipeline integrates with county clerk recording systems to deliver fresh filings daily. You can also contact your county tax collector's office directly for upcoming auction dates. Most counties now offer online auction platforms alongside in-person sales.

How Tax Lien Investing Works — Guide for Beginners

What Is a Tax Lien?

When a property owner fails to pay their property taxes, the county government places a tax lien on the property. This lien represents the unpaid tax debt and gives the county a legal claim against the property.

To recover the unpaid taxes, many counties sell tax lien certificates to investors at public auctions. The investor pays the delinquent taxes on behalf of the property owner and receives a certificate that earns interest.

How the Process Works

1. Tax Delinquency: A property owner misses their property tax payment. After a grace period, the county records a tax lien against the property in the official records.

2. Lien Sale / Auction: The county offers the tax lien certificate at a public auction. Investors bid on the interest rate (bid down) or premium (bid up) depending on the state.

3. Redemption Period: The property owner has a set period (varies by state — typically 1-3 years) to pay back the taxes plus the interest rate to the certificate holder.

4. Resolution: Either the owner redeems (pays the investor back with interest) or the investor can apply for a tax deed to take ownership of the property.

Types of Tax Liens We Track

LNTX — Tax Lien: Standard county tax lien filed against a property for unpaid taxes. This is the most common type.

LNTXNC — Tax Lien (Non-Certified): Tax lien that has not yet been certified by the court. These are early-stage filings.

AFFTX — Tax Affidavit: An affidavit related to tax obligations filed in the official records. Often accompanies tax lien or deed proceedings.

Why Use KBTaxLiens?

Daily Updates: Our proprietary data pipeline integrates with county clerk recording systems to deliver new filings every day. You see fresh data before most investors.

Property Values: We match lien records with property appraiser data so you can see the property value alongside the lien amount — essential for calculating equity.

Multi-State Coverage: We track tax liens across multiple states and counties, all in one searchable database.

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