Arizona tax lien sales are county auctions where investors bid on the interest rate they will accept for paying a property’s unpaid taxes, and the lowest rate wins. The winner receives a certificate of purchase, the owner keeps the property, and the investor earns interest if the owner pays the debt back. Arizona is a bid-down state, so the competition is over the rate you earn and not over the price of the property.
This guide is for aspiring investors who want to understand every stage of an Arizona tax lien: how the sale works, how bidding on the interest rate works, what the 16% ceiling means, what happens after the purchase and how the Maricopa County online sale runs. It also covers research, risks, taxes and the first steps to take. For general auction mechanics we link to our existing guides, so this page can stay focused on Arizona.
Last reviewed against Arizona Revised Statutes Title 42, Chapter 18, the county treasurer pages named in the text and the IRS guidance on interest on November 2, 2026. This guide is educational and is not legal, tax or investment advice. Sale dates, fees and platform rules change, so confirm them with the county before every purchase.
What Are Arizona Tax Lien Sales?
Arizona tax lien sales are annual county auctions where the county treasurer sells the claim for delinquent property taxes to an investor. The investor pays the unpaid taxes and costs, the county is made whole, and the investor earns interest from the owner when the lien is paid off. The property itself is not sold at this stage.
The Short Definition
An Arizona tax lien is a legal claim against a property for unpaid property taxes, and an investor who buys it holds that claim and not the property. Under A.R.S. 42-18101, the county treasurer collects unpaid delinquent taxes by selling tax liens and by foreclosing the right to redeem. In plain terms, “foreclosing the right to redeem” means a court ends the owner’s chance to pay the lien off and keep the property.
An Arizona tax lien sale therefore creates a loan-like position. You pay the taxes, you are repaid with interest if the owner redeems, and you may be able to ask a court for the property only if the owner never pays and the legal waiting period has passed.
Why Arizona Counties Sell Tax Liens
Arizona counties sell tax liens because they depend on property tax revenue to fund schools, roads, fire districts and other services, and they cannot wait years for delinquent accounts to settle. Selling the lien gets the county its money within weeks and passes the wait to the investor. The county does not guarantee that the owner will ever pay you back.
The statute also lets the treasurer sell the taxes from more than one year at once. A.R.S. 42-18104 says the lien covers all delinquent taxes for the property, plus related penalties, interest and charges, for the current and preceding years, so a single lien can be larger than one year’s bill.
The Parties in Every Sale
Every Arizona tax lien sale involves the same five parties, and each one wants something different. Knowing who they are shows you where your money and your risk sit.
| Party | Role | What they want |
| County treasurer | Runs the sale, issues certificates and collects redemption payments | To collect unpaid taxes and costs |
| Property owner | Owes the taxes and can pay the lien off to keep the property | To keep the property and end the debt |
| Other lienholders | Hold mortgages or other claims on the property | To protect their claims, often by paying the taxes |
| Investor | Buys the lien and earns interest on the money paid | A return after costs and time |
| Superior court | Hears a foreclosure action if the lien is never paid | A valid sale, proper notice and a fair result |
The owner and any mortgage lender are the most likely source of your payout. When one of them pays the lien, you are repaid with interest, which is why an Arizona tax lien is usually described as an income product and not a property product.
How Does an Arizona Tax Lien Sale Work From Start to Finish?
An Arizona tax lien sale moves through five stages: the taxes go unpaid, the treasurer sells the lien, investors bid the interest rate down, the winner receives a certificate of purchase, and the owner either redeems or the lien moves toward foreclosure. The sequence is the same in every county, although dates and platforms differ.
Step One: The Property Taxes Go Unpaid
The sequence starts when a property tax bill is not paid by its delinquency date. For 2026, the Maricopa County Treasurer’s calendar shows first-half taxes becoming delinquent after 5 pm on November 2, 2026, and December 31, 2026 as the last day to pay full-year bills over $100 without interest. Once taxes are delinquent, interest starts to run at 16% simple interest per year under A.R.S. 42-18053.
Unpaid taxes do not go to a lien sale right away. The county builds a delinquent list first, and the owner can still pay before the sale. Some parcels drop off the list before bidding starts, which is why you should always check the final list again close to the sale.
Step Two: The County Treasurer Sells the Lien
The county treasurer advertises the list and then sells the liens at a public auction, which today is held online in the counties we reviewed. Before the sale, the treasurer must mail a notice to the owner of each parcel on the list under A.R.S. 42-18108. Under A.R.S. 42-18109, the treasurer must also post the list at the treasurer’s office for at least two weeks and publish it in a newspaper two to three weeks before the sale starts.
The sale is the point where an Arizona tax lien becomes an investment. The Pima County notice says liens are offered by sequence number, in the order they appear in the newspaper, and are grouped into batches that close at set times.
Step Three: Investors Bid the Interest Rate Down
In Arizona, bidders compete on the interest rate and not on the price. Bidding starts at the 16% ceiling, and each bid lowers the rate the investor is willing to accept. The investor who offers the lowest rate becomes the purchaser, as A.R.S. 42-18114 describes it: the person who pays the full delinquent amount and offers the lowest redemption interest rate, capped at the 16% rate in A.R.S. 42-18053.
The next section explains why a lower rate wins and how to set your own limits before the sale.
Step Four: The Winning Bidder Receives a Certificate of Purchase
The winning bidder pays the full lien amount and receives a certificate of purchase, which is the legal record of your claim. The certificate shows the parcel, the amount you paid and the interest rate you bid. Under A.R.S. 42-18114, interest at your bid rate begins on the first day of the month after the lien is purchased.
The certificate does not give you the property, the right to enter it or the right to collect rent. Only the owner’s payment or a court judgment after a long waiting period can change that.
Step Five: The Owner Redeems or the Lien Moves Toward Foreclosure
After the sale, one of two things happens. In most cases, the owner or a lender redeems the lien by paying what the certificate shows is owed, and you are repaid your money plus interest at your bid rate. If nobody redeems, the lien stays open, and you may be able to start a foreclosure action in superior court once the waiting period in A.R.S. 42-18201 has passed.
Our guide to the tax lien redemption period covers redemption in general. The Arizona-specific rules are in the section on what happens after you buy.
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How Does Bidding Work at an Arizona Tax Lien Auction?
Bidding at an Arizona tax lien auction is a descending contest on interest rates: bids start at 16% and fall in 1% steps, and the investor willing to accept the lowest rate wins the lien. A bid of 0% is allowed, which means the winner would earn no interest at all. For the general mechanics of auctions, see our simple breakdown of how tax lien auctions work and our guide to mastering the bidding process. This section covers what is specific to Arizona.
Why the Lowest Interest Rate Wins
The lowest interest rate wins because the auction is designed to keep the owner’s cost of redeeming as low as competition allows. Under A.R.S. 42-18114, the purchaser is the bidder who offers the lowest redemption interest rate. The owner who later redeems pays the rate you bid, and not a rate the county chose.
This design rewards patience and punishes chasing. Every point you bid away raises your chance of winning a lien and lowers the return you keep. The Pima County treasurer’s sale notice, for example, describes bidding that starts at 16% and moves in 1% increments, with 0% allowed.
The 16% Ceiling on Arizona Tax Lien Interest
The most an Arizona tax lien can pay is 16% per year, and that figure is a ceiling and not a promise. A.R.S. 42-18053 sets delinquent property taxes at 16% simple interest per year, and A.R.S. 42-18114 caps the rate a purchaser can offer at that same figure. “Simple” interest means the rate is applied to the original amount only and does not compound.
A 16% lien is what you earn when no other bidder is willing to go lower. On parcels that attract many bidders, the winning rate can fall to a few percent or even zero. A 2023 Arizona School of Real Estate and Business article by Jim Hogan says investors have actually earned about 3% to 8%, which is the author’s view and not a guarantee. Our comparison of tax lien interest rates by state shows how Arizona’s bid-down system compares with other states.
Registering and Preparing to Bid
To bid, you register on the county’s auction site, complete the required tax forms and fund a deposit before the sale. Maricopa County directs bidders to its RealAuction site at maricopa.arizonataxsale.com, and Pima and Navajo counties run their sales on RealAuction too. Each bidding entity may register only once, and the Pima County notice says an entity cannot have a contractual, legal or financial relationship with another registered bidder in the same sale.
Deposit rules are set by each county and change, so confirm the current figures. A 2019 overview by a retired Maricopa County Treasurer described a deposit of at least $500 or 10% of your budget, whichever was greater, paid by ACH, and a 2020 article described the same minimum. Treat those figures as background and check the current Bidding Rules on the county’s sale site before you register.
- Register early, because registration windows close before the sale day.
- Complete the IRS tax form the platform requires, so the county can report your interest.
- Set a budget, because it limits how many liens you can be awarded.
- Fund the deposit by the deadline.
- Practice on the platform’s training videos before the sale day.
Setting Your Minimum Rate Before the Sale
Set your minimum acceptable rate before the sale starts and do not change it during bidding. A lien at 2% that stays unpaid for three years earns less than a lien at 8% that is paid in one year, so your minimum should reflect both the rate and how long your money may be tied up.
A simple rule is to decide on a rate floor for each type of parcel and to skip any parcel where competition pushes the rate below it. Ties are possible at the same percentage. The retired Maricopa County Treasurer who wrote the 2019 overview described tied bids being decided by a random number generator, which makes the sale partly an auction and partly a lottery. In practice, it means you cannot count on winning every lien you bid on.
Online and In-Person Arizona Auctions
Arizona counties we reviewed run their tax lien sales online, and the bidding happens on the auction platform and not in a room. Online sales let you bid from anywhere and in batches, which also widens the pool of competitors. For a general comparison, see our guide to online versus in-person tax lien auctions.
Paying for Your Liens
Winning bidders must pay in full by the deadline posted on the sale site, and all sales are final. The Pima County notice lists what the total includes: the printed amount (base tax, interest and penalties), a $10 certificate fee, a county processing fee of $1, $5 or $10, and RealAuction fees for each delinquent year. If a winning bidder does not pay, the notice says the treasurer may recover the bid amount through a civil action under A.R.S. 42-18116.
Budget for these extras on top of the face amount of each lien. Missing a payment deadline is an expensive mistake: under A.R.S. 42-18116, a buyer who does not pay can be sued for the bid or barred from buying liens in the state’s counties for up to a year, Every purchaser also pays a processing fee of up to $10 per lien under the same statute.
How Do You Earn Interest on an Arizona Tax Lien?
You earn interest on an Arizona tax lien at the rate you bid, and you receive it, together with your original money, when the owner or a lender redeems the lien. The interest is paid by the owner and not by the county, and it is not paid until the lien is redeemed.
How Interest Accrues
Interest accrues from the first day of the month after you buy the lien and runs at the rate on your certificate until the lien is redeemed. A.R.S. 42-18114 sets that start date, and A.R.S. 42-18121 uses the same rule for taxes you pay later. The delinquent-tax interest in A.R.S. 42-18053 is simple, and the same statute counts a fraction of a month as a whole month for the owner’s interest, so confirm how your certificate and the county’s payoff figure treat partial months.
The table below uses simple interest on a $2,500 lien to show how the rate and the wait work together. The numbers are an illustration of the arithmetic and not a forecast of any lien.
| Winning rate | Interest after 1 year | Interest after 3 years |
| 2% | $50 | $150 |
| 4% | $100 | $300 |
| 8% | $200 | $600 |
| 16% (ceiling) | $400 | $1,200 |
Why the Wait Matters
The wait matters because the same rate earns very different results depending on how long the lien stays unpaid. A 16% lien repaid in two months earns about 2.7% of the amount invested in total, while an 8% lien held three years earns about 24%. The owner decides when to pay, and you cannot speed it up.
Plan for the slow case and treat a fast payoff as a bonus. Money tied up in a lien is money you cannot use at the next sale.
What Your Arizona Tax Lien Return Depends On
Four things decide your Arizona tax lien return, and only two of them are in your hands.
- The rate: the interest rate you bid, which you choose within the 0% to 16% range.
- The wait: how long the owner takes to pay, which you do not control.
- The competition: how many other investors bid on the same parcels, which you influence only by choosing where and what to bid on.
- The collateral: what the property is worth if the owner never pays, which research tells you before you bid.
What Happens After You Buy an Arizona Tax Lien?
After you buy an Arizona tax lien, the owner has at least three years to pay it off, and most of the time you simply wait for that payoff. If the lien is still unpaid after three years, you may be able to start a court foreclosure action, but that path is slower and more expensive than waiting for redemption.
When the Owner Redeems
When the owner redeems, the owner or a lender pays the amount due to the county, and the county pays you your money back plus interest at your bid rate. Redemption is the usual way an Arizona tax lien ends. Jim Hogan, writing in a 2023 article for the Arizona School of Real Estate and Business, says the majority of liens are redeemed by the owner and that only around 1% to 2% of liens sold end with the bidder acquiring the property. That is one practitioner’s view, so treat it as a rough guide and not a statistic you can plan around.
The treasurer’s payoff figure, and not a number you work out yourself, is what the owner must pay. Keep your certificate and your records, because you will need them to be repaid.
The Three-Year Wait Before Foreclosure
You cannot ask a court for the property until three years after the sale. A.R.S. 42-18201 says a foreclosure action may be brought starting three years after the tax lien sale and no later than ten years after the last day of the month the lien was acquired. In the meantime, A.R.S. 42-18152 lets the owner redeem at any time within the three years, and afterward until the treasurer delivers a deed.
For a deeper look at the timing question, see our guide on when to foreclose on a tax lien and when to wait. The key point for Arizona is that the three-year clock is a minimum and not a schedule: many liens are paid off long before it ends.
Foreclosure and the Treasurer’s Deed
Foreclosure in Arizona is a lawsuit in superior court, and it does not always end with the investor owning the property. Before you can file, A.R.S. 42-18202 requires you to mail a certified notice to the owner of record and to other listed addresses at least 30 days, and no more than 180 days, before filing. The notice must tell the owner that anyone who wants to keep equity in the property must request an excess proceeds sale under A.R.S. 42-18204.
Under A.R.S. 42-18204, if the sale is valid and the lien was not redeemed, the court ends the owner’s right to redeem and directs the county treasurer to deliver a deed to the party who won the judgment. That deed is the treasurer’s deed. But if the property is likely to sell for more than $2,500 above the total owed, and the owner or certificate holder requests it, the court can order an excess proceeds sale instead, and the owner keeps an interest in the excess. In that case, you are repaid from the sale and do not end up with the property.
The owner can also redeem at any time before the judgment is entered, as A.R.S. 42-18206 explains, and after a recorded notice the owner may have to cover your litigation costs. Foreclosure requires an attorney, time and money, so treat it as a possible outcome and not as the plan.
Subsequent Taxes and State Assignments
After you buy a lien, you can pay the later years’ taxes on the same parcel, and you can also buy liens the state has been assigned. Both options add to the amount you have invested, and both carry their own rules, so read the county’s instructions first.
- Subsequent taxes: under A.R.S. 42-18121, a certificate holder may pay later-year taxes on or after June 1, and the added amount earns interest at the rate on your certificate starting the first day of the month after the subsequent lien is purchased. The treasurer charges a $5 fee for recording the payment.
- Separate assignment certificates: in a county with more than three million people (in practice, Maricopa), and only if no prior-year certificates are outstanding, A.R.S. 42-18121(B) lets the treasurer issue a separate certificate of purchase by assignment for each subsequent year, each earning interest at the original rate, with a $5 fee per assignment.
- State assignments: liens that do not sell at the auction are assigned to the state, and under A.R.S. 42-18122 the treasurer resells them. The buyer must pay the full balance, including interest, penalties and charges, along with any later taxes, and the treasurer may charge a fee of up to $10 per assignment.
The Maricopa County Treasurer’s tax lien page lists sections on “What is a State Assignment?” and assignment purchasing instructions, and carried a notice in 2026 that Assignment/Subtax Purchasing begins in July. Check that page for the current mechanics, because they are set by the county and the dates move.
How Do You Find and Research Arizona Tax Lien Properties?
You find Arizona tax lien properties on the county treasurer’s published delinquent list, and you research them parcel by parcel before the sale. The list tells you which taxes are owed, but it says nothing about what the property is worth or what condition it is in, so research is where most of your risk is removed.
What an Arizona Tax Lien Property Really Is
An Arizona tax lien property is a parcel with a lien on it, and it is not a property you are buying. The owner keeps the property, and you hold a claim against it. Many people who search for Arizona tax lien properties are looking for cheap homes, so it helps to be clear that a lien sale is not a home sale. You may only receive the property after a long waiting period and a successful foreclosure, and even then the court can order a sale for excess proceeds instead.
Reading the County’s Delinquent List
The delinquent list shows each parcel number, the owner of record and the amount owed, and you read it to build a short list of candidates. The Navajo County sale page warns that listed amounts are taxes only and exclude interest, penalties and fees, and that some parcels may be unavailable because of payment, bankruptcy or other issues.
Among Arizona tax lien properties, start with parcels where the amount owed is small compared with the value of the property. A wide gap between what you pay and what the property is worth is the cushion that protects you if the owner never pays.
Research Steps Before You Bid
Research each parcel the same way every time, so you compare liens on facts and not on excitement. Our guide on tax lien property research covers the full process, and these are the core steps for an Arizona lien.
- Confirm the parcel number, the owner and the amount owed on the county’s current list.
- Check the assessor’s record for the property type, size and assessed value.
- Look at the parcel on a map and in street-level imagery to confirm that a building exists and that the land is usable.
- Check for other liens, mortgages or bankruptcy notes that could delay or block a payoff.
- Estimate what the property would sell for, and compare that with the total you would pay.
- Decide your minimum rate for the parcel and write it down before the sale.
Parcels to Skip
When you screen Arizona tax lien properties, skip any parcel where you cannot explain why the owner would pay or why the property is worth more than your lien. The main warning signs are listed below.
- Vacant land with no clear access, or slivers of land with no practical use.
- Parcels where the amount owed is close to or above the property’s value.
- Properties with a bankruptcy note or a recorded payment arrangement.
- Parcels you cannot find on a map or confirm in imagery.
- Property types you do not understand, such as commercial sites with possible contamination.
Passing on a parcel is a good result, because it costs nothing.
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How Do Maricopa County Arizona Tax Lien Sales Work?
Maricopa County Arizona tax lien sales run online through RealAuction, where investors register, fund a deposit and bid the interest rate down from 16% on each lien. Maricopa County is Arizona’s most populous county, and its treasurer’s office publishes the list, runs the sale and issues the certificates. This section is one county’s walkthrough and not a separate guide. For help choosing a county in general, see our guide to how to pick the right county for your first investment.
Why Investors Look at Maricopa County First
Investors look at Maricopa County Arizona tax lien sales first because it is the state’s largest market, so it offers the most parcels and the most data to research. The county treasurer’s site has a dedicated tax lien information page, a bidder site and sections on liens sold, outstanding sold liens, redeemed liens and state liens, which gives you history to study before you bid.
A large market also means more competition. More bidders push winning rates down, so the parcels you research most carefully matter more than the number of parcels you chase.
How the Maricopa Online Sale Runs
The Maricopa online sale runs on RealAuction at maricopa.arizonataxsale.com, and the Treasurer’s tax lien page directs visitors there to learn more and register. The retired treasurer’s 2019 overview describes the general rhythm: the list is published in mid-January, online bidding opens, bids are placed in whole percentages from 0% to 16%, and the sale closes in early February. Subsequent-year taxes can be added from June 1 to December 31.
The overview also describes how the budget works: you set a budget with your deposit, and the budget limits how many liens you are awarded, and unsold liens are available at the Treasurer’s Office after the auction. Because that article is from 2019, treat the dates and deposit as background and confirm every current figure on the Maricopa County Treasurer’s tax lien page and in the Bidding Rules on the RealAuction site.
How Other Arizona Counties Compare
Other Arizona counties run the same bid-down process as Maricopa County Arizona tax lien sales, often on the same platform, but each sets its own dates, fees and rules. Arizona has 15 counties, and the two we reviewed in detail follow the same pattern as Maricopa.
| County | 2026 sale details we found | Platform |
| Pima | Registration February 2 to 19; one-day online sale on February 26; bids start at 16% in 1% steps, 0% allowed | RealAuction |
| Navajo | Bidding opens February 3; sale on February 11 in hourly batches; payment due by 4 pm the same day | RealAuction |
| Maricopa | Online sale in February in past years; assignment and subsequent-tax purchasing later in the year | RealAuction |
See the Pima County sale page and the Navajo County sale instructions for the full text. A smaller county can mean fewer bidders, but it can also mean fewer parcels worth buying, so apply the same research steps everywhere. All sales are final, so read each county’s Bidding Rules before you register.
What Are the Pros and Cons of Arizona Tax Liens?
The main advantage of an Arizona tax lien is a return set by a government process and secured by the property, and the main drawbacks are a possibly low rate, uncertain timing and the work of research. The 16% ceiling sounds attractive, but competition in the bid-down sale often pushes winning rates well below it.
- Pro: interest is paid by the owner at the rate you bid, secured by a lien on the property.
- Pro: the process is online, so you can bid from anywhere.
- Pro: practitioners report that the majority of liens are redeemed, so repayment with interest is the usual outcome.
- Con: competitive bidding can push rates to a few percent or zero.
- Con: you cannot control when the owner pays, so your money can be tied up for years.
- Con: foreclosure is slow, needs a lawyer and may end in an excess proceeds sale and not ownership.
What Are the Risks Behind the Interest?
The main risks are low yield, tied-up capital, thin collateral, missed deadlines and foreclosure costs, and no return is guaranteed. A 16% ceiling is not a 16% return, because the rate you actually earn is the rate you win at, for the time the lien stays open.
- Low yield: you may win a lien at a rate that barely covers fees and the cost of waiting.
- Tied-up capital: the owner decides when to pay, and the money is locked until then.
- Thin collateral: a lien on a property worth less than the debt protects very little.
- Missed deadlines: unpaid balances after the sale can lead to a civil action for the bid amount, and notice rules apply before any foreclosure.
- Foreclosure cost and outcome: the process needs a lawyer, takes time and may result in a sale for excess proceeds and not a deed.
How Is Arizona Tax Lien Interest Taxed?
Interest you earn on an Arizona tax lien is generally taxable income, and you should talk to a CPA about how it applies to you. The IRS says in its Topic 403 guidance that most interest you receive is taxable in the year it becomes available to you, and that you must report taxable interest even if you do not receive a Form 1099-INT. The IRS also says you should receive a Form 1099-INT when interest payments total $10 or more.
This is why county platforms ask bidders to complete a tax form before the sale. Profit from a property you later acquire is a separate matter, and its tax treatment depends on what you do with the property. This section is general information and not tax advice.
What Should You Check in Arizona’s Rules?
Check eight items in the Arizona statutes and your county’s sale page before you invest, because they decide your return and your risk. The statutes are in Title 42, Chapter 18 of the Arizona Revised Statutes, and each county’s rules sit on top of them.
- Sale date and registration window: when registration opens and closes, and which day bidding happens.
- Deposit and budget rules: the deposit amount, the budget limit and the payment deadline.
- Rate rules: the 16% ceiling in A.R.S. 42-18053 and how your bid sets your rate.
- Fees: certificate fees, county processing fees and platform fees.
- Redemption window: redemption within three years and afterward until a deed is delivered (A.R.S. 42-18152).
- Foreclosure timing: the three-year start and ten-year limit in A.R.S. 42-18201.
- Notice and excess proceeds: the certified notice in A.R.S. 42-18202 and the excess proceeds sale in A.R.S. 42-18204.
- Subsequent taxes and assignments: the June 1 date and the fees in A.R.S. 42-18121 and 42-18122.
Statutes change, so confirm each one on the Arizona Legislature’s site before you act.
How Do You Get Started With Arizona Tax Liens?
Start by learning one county’s rules well, then register, set your limits and research parcels before the next sale. The steps below apply to most Arizona counties, and the same process works in the next county once you know it.
- Read Arizona’s lien rules in A.R.S. Title 42, Chapter 18 and the treasurer’s sale page for your county.
- Choose one county and learn its treasurer’s sale page well.
- Set your budget, your minimum rate and the amount of capital you can leave tied up.
- Register on the county’s RealAuction site before the registration window closes, and complete the required tax form.
- Fund your deposit and read the Bidding Rules, including the payment deadline.
- Research each parcel before the sale, using the steps in this guide.
- Bid within your limits, pay on time and record every important date.
- Track each certificate until it is redeemed, and plan for subsequent taxes after June 1.
If you want guidance from active investors, you can read what UTL students say in our client testimonials or start from the United Tax Liens home page to see our courses and coaching. Take it one county at a time.
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Mistakes to Avoid When You Are New
Five mistakes are easy to make when you are new to Arizona tax liens: chasing the ceiling, ignoring the wait, skipping research, missing a payment deadline and forgetting the extra costs. Each one can be avoided with a plan made before the sale.
- Chasing the 16% ceiling: the ceiling is a limit and not an expectation, and competition usually pushes the winning rate lower.
- Ignoring the wait: a good rate held for years can earn less than a modest rate paid quickly.
- Skipping research: the amount owed says nothing about a property’s condition, value or access.
- Missing the payment deadline: all sales are final, and an unpaid winning bid can lead to a civil action.
- Forgetting the extras: certificate fees, processing fees, platform fees and the $5 subsequent-tax fee all reduce your return.
United Tax Liens offers online courses and coaching for new tax lien investors, led by a team of active tax lien and deed investors, so you can learn the process before you invest. Our sister program, Tax Lien Wealth Builders, also teaches tax lien investing.
Key Terms
Tax lien: A legal claim against a property for unpaid property taxes. In Arizona, the county sells it to an investor at auction.
Certificate of purchase: The record the treasurer issues to the winning bidder. It shows the parcel, the amount paid and the interest rate bid.
Bid-down auction: An auction where investors bid the interest rate down from a ceiling and the lowest rate wins. Arizona’s ceiling is 16%.
Redemption: The owner’s right to pay the lien, plus interest, and clear the debt. The investor is repaid when this happens.
Subsequent taxes: Later years’ property taxes that a certificate holder may pay on or after June 1. They earn interest at the certificate’s rate.
State assignment: A lien that did not sell at auction and was assigned to the state. The treasurer later resells it to investors.
Treasurer’s deed: The deed the county treasurer delivers to the winner of a foreclosure judgment after the owner’s right to redeem is ended.
Excess proceeds sale: A court-ordered sale of the property when it is likely to bring more than $2,500 over the amounts owed. The owner keeps an interest in the excess.
Frequently Asked Questions About Arizona Tax Lien Sales
Is Arizona a tax lien state?
Yes. Arizona sells tax liens and not tax deeds at its annual county sales. Investors bid the interest rate down from a 16% ceiling, and the winner holds a certificate of purchase. A deed is possible only after a court foreclosure.
What is the maximum interest rate on an Arizona tax lien?
The maximum is 16% per year, set by A.R.S. 42-18053 and applied to bidding by A.R.S. 42-18114. Bidding starts at that ceiling, and the lowest rate wins, so the rate you earn is often lower. A bid of 0% is allowed.
When are Arizona tax lien sales held?
The county sales we reviewed are held in February. Pima County’s 2026 sale was on February 26, and Navajo County’s was on February 11. Maricopa County Arizona tax lien sales have also been held in early February in past years, with subsequent-tax purchasing later in the year. Dates change every year, so check your county’s treasurer page.
Can you get a property from an Arizona tax lien?
Possibly, but it is not the usual outcome. You can ask a court to foreclose the owner’s right to redeem starting three years after the sale, and if the court enters judgment, the treasurer delivers a deed. However, the owner can redeem until judgment, and the court can order an excess proceeds sale instead.
What happens if the owner never pays?
If the owner never pays, you can bring a foreclosure action in superior court between three and ten years after the sale, after sending the required certified notice. If you take no action in that window, your right to foreclose ends.
How much money do you need to start?
The amount depends on the county and the liens you choose, and your deposit and budget come first. Past Maricopa County overviews describe a deposit of at least $500 or 10% of your budget, though you should confirm the current rule.
Do you pay taxes on Arizona tax lien interest?
Yes. The IRS says most interest you receive is taxable income and must be reported even without a Form 1099-INT. Ask a CPA how it applies to your situation.
Key Takeaways
- Arizona tax lien sales are bid-down auctions: investors bid the interest rate from 16% downward, and the lowest rate wins the lien.
- The 16% figure is a ceiling set by statute, and the rate you actually earn is the rate you win at, for as long as the lien stays open.
- The owner has at least three years to redeem, and a court foreclosure can start three years after the sale and must start within ten.
- Foreclosure does not always end with a deed, because the court can order an excess proceeds sale and the owner keeps the excess.
- Research each parcel, set your minimum rate in advance and pay on time, because all sales are final.
- Confirm dates, deposits and fees on your county’s treasurer page, and talk to a CPA about how the interest is taxed.
| ⚠ Earnings Disclaimer
Earnings Disclaimer: United Tax Liens provides real estate education and training only. We do not guarantee investment results or income. Individual outcomes vary based on effort, market conditions, and individual skill. Investing of any kind carries risk. This content is for educational purposes only and does not constitute legal, tax, or financial advice. Consult licensed professionals before making investment decisions. |
Related Reading: Tax Lien Interest Rates by State | Tax Lien Investing Pros and Cons | Earnings Disclosure
