Investing guides / Tennessee

Tennessee tax sale investing: buy the deed — but the owner gets a window

How it works in Tennessee

In Tennessee you buy a redeemable deed: you take the property at the sale, but the former owner can redeem it during the statutory window by paying you the statutory penalty.

Interest / penalty: 12% per annum on the full purchase price, accruing from the date the purchaser pays the clerk until a motion to redeem is filed (Tenn. Code Ann. § 67-5-2701(b))

Redemption: From entry of the order confirming the sale, tiered by length of delinquency (§ 67-5-2701(a)): 1 year if delinquency is 5 years or less; 180 days if more than 5 but less than 8 years; 90 days if 8 years or more; 30 days for property shown to be vacant/abandoned (or qualifying vacant commercial structures)

When sales happen: No fixed statewide date; sales follow a delinquent-tax suit in Chancery Court and are scheduled by each county / Clerk and Master, roughly annually and often in the fall

Where sales run: GovEase (counties that sell online), mostly in-person / county-specific (Chancery Court / Clerk and Master sales in many counties)

Governing law: Tennessee Code Annotated, Title 67, Chapter 5, Parts 25-27 (esp. §§ 67-5-2501, 67-5-2701)

The investor's edge

Your edge is penalty math: model both outcomes — redemption (you earn the penalty) and keeping the property (you earn the equity) — and only bid where both outcomes work.

Price bid-up, court-ordered sale of the land itself — no lien certificates are sold. The purchaser's interest is on the entire bid (including any overbid), unlike capped-interest states, and the clerk issues a tax deed only after the redemption period expires unredeemed.

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