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Arizona tax sale investing: buy the tax debt, earn the rate

Quick answerArizona sells tax lien certificates for unpaid property taxes. Lien buyers can earn Up to 16% per year, bid down — bidding starts at 16% and the lowest rate wins (0% bids allowed); interest is simple, a fraction of a month counts as a whole month (A.R.S. §§42-18053, 42-18114). Liens struck to the state earn the full 16%. Redemption: Owner may redeem at any time until a court judgment forecloses the right to redeem; the certificate holder may not begin judicial foreclosure until 3 years after the sale, and the lien expires if foreclosure is not commenced within 10 years (A.R.S. §§42-18152, 42-18201) Sales: Annual county treasurer tax lien sales in February Governing law: Arizona Revised Statutes Title 42, Chapter 18, esp. §§42-18053, 42-18112, 42-18114, 42-18152.

How it works in Arizona

In Arizona you are not buying property at the sale — you are buying the county's tax lien certificate for the amount of taxes owed, and the owner owes you interest until they redeem.

Interest / penalty: Up to 16% per year, bid down — bidding starts at 16% and the lowest rate wins (0% bids allowed); interest is simple, a fraction of a month counts as a whole month (A.R.S. §§42-18053, 42-18114). Liens struck to the state earn the full 16%

Redemption: Owner may redeem at any time until a court judgment forecloses the right to redeem; the certificate holder may not begin judicial foreclosure until 3 years after the sale, and the lien expires if foreclosure is not commenced within 10 years (A.R.S. §§42-18152, 42-18201)

When sales happen: Annual county treasurer tax lien sales in February

Where sales run: Primarily online via RealAuction on county-specific arizonataxsale.com portals (including Maricopa, Pima, Pinal, Yavapai and Coconino); Cochise County via GovEase; unsold/state-assigned liens resold via Bid4Assets

Governing law: Arizona Revised Statutes Title 42, Chapter 18, esp. §§42-18053, 42-18112, 42-18114, 42-18152

The investor's edge

Your edge is rate discipline: know the statutory maximum, know what the sale historically bids down to in your target counties, and set a floor rate you will not cross before the sale starts.

Competition is intense in Maricopa County, where winning rates commonly bid down to 0-3%, vs. the 16% headline rate. Foreclosure is judicial in Superior Court (not an administrative treasurer's deed), and under post-Tyler amendments the owner may request an excess-proceeds sale under §42-18204.

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Full legal reference: Arizona tax sale laws. Verified 2026-10-30 against the sources on that page. Educational only, not investment advice.