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Investing guides / Indiana

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

Quick answerIndiana sells tax lien certificates for unpaid property taxes. Lien buyers can earn Premium (overbid) auction; return is penalty-based, not a bid interest rate. On redemption the owner pays 110% of the minimum bid if redeemed within 6 months, or 115% of the minimum bid if redeemed after 6 months and within 1 year (i.e., a 10% or 15% penalty on the minimum-bid portion), plus 5% per annum on the portion of the purchase price above the minimum bid and 5% per annum on subsequent taxes paid by the buyer, for sales after June 30, 2014 (IC 6-1.1-25-2). The overbid principal itself is returned on redemption; it is not forfeited.. Redemption: 1 year from the date of sale (IC 6-1.1-25-4); only 120 days for certificates acquired by the county commissioners (county-held certificates) and for certain purchasing agencies. Sales: Annual county tax sales in the fall, mostly September-October; unsold certificates later go to a commissioners' (county executive) certificate sale, typically in the following winter/spring. Governing law: Indiana Code 6-1.1-24 (tax sale) and 6-1.1-25 (redemption and tax deeds), esp. IC 6-1.1-25-2 and IC 6-1.1-24-6.1 (commissioners' sale).

How it works in Indiana

In Indiana 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: Premium (overbid) auction; return is penalty-based, not a bid interest rate. On redemption the owner pays 110% of the minimum bid if redeemed within 6 months, or 115% of the minimum bid if redeemed after 6 months and within 1 year (i.e., a 10% or 15% penalty on the minimum-bid portion), plus 5% per annum on the portion of the purchase price above the minimum bid and 5% per annum on subsequent taxes paid by the buyer, for sales after June 30, 2014 (IC 6-1.1-25-2). The overbid principal itself is returned on redemption; it is not forfeited.

Redemption: 1 year from the date of sale (IC 6-1.1-25-4); only 120 days for certificates acquired by the county commissioners (county-held certificates) and for certain purchasing agencies.

When sales happen: Annual county tax sales in the fall, mostly September-October; unsold certificates later go to a commissioners' (county executive) certificate sale, typically in the following winter/spring.

Where sales run: SRI Tax Sale Services (SRI Inc.) runs most county sales, online via Zeus Auction (zeusauction.com) or in-person; some counties (e.g., Marion County in some cycles) have used GovEase.

Governing law: Indiana Code 6-1.1-24 (tax sale) and 6-1.1-25 (redemption and tax deeds), esp. IC 6-1.1-25-2 and IC 6-1.1-24-6.1 (commissioners' sale)

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.

The buyer must petition the court for a tax deed within 6 months after the 1-year redemption period expires or the lien terminates (IC 6-1.1-25-7). Amounts bid above the minimum bid that exceed what is owed on redemption go to the tax sale surplus fund, claimable by the owner, not kept as buyer profit beyond the statutory 5% per annum.

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