How Maricopa County uses tax lien sales to support public revenue

Last Updated on August 28, 2025

Why property taxes matter

Local governments use property taxes to pay for important things. These include schools, road repair, police, and fire services. When property owners do not pay these taxes on time, the money for these services is missing. 

In Maricopa County, there is a list of unpaid taxes every year. The county needs to find a way to collect this money. If people don’t pay their property taxes after certain deadlines, the county can put a lien on the property.

What is a tax lien sale?

When a property owner doesn’t pay their taxes, the Maricopa County Treasurer sells the unpaid taxes during a tax lien sale. Buying a tax lien means you don’t get the property; instead, you get a certificate that allows you to collect the unpaid taxes plus interest from the owner. Here are some important facts about tax liens in Maricopa County:

• Interest rate: delinquent property taxes accrue simple interest at an annual rate of up to 16 percent In the auction, bidding starts at 16 percent, and bidders offer to accept lower rates. The winner is the person who accepts the lowest rate.
  
• Redemption period: A property owner can pay their taxes during a time called the redemption period, which is up to three years. Most people pay what they owe, so only 1 to 2 percent of tax liens lead to losing their homes. This means very few people lose their homes because of unpaid taxes.
• State liens: If nobody wants a piece of land at the auction, it goes to the state. This means the state now owns the tax lien on that land. Later on, people can still buy these liens at a rate of 16 percent. If the taxes are not paid in seven years, the state can take the land.
  
• Fees: when a tax lien is listed for sale, there are advertising and sale fees, including a non‑refundable fee of $5 or $10 per certificate
  
• Not a property sale: the Treasurer reminds bidders that this is not a sale of real property. The lien is just about the unpaid taxes. This means the person still owns the property until a court decides to take it away because of foreclosure.

How the auction works

Why do counties sell tax liens?

When people don’t pay their taxes, it hurts important services in our community, like schools, fire stations, and road repairs. In Maricopa County, the county sells tax liens to quickly get the unpaid taxes. The buyer pays the taxes and some fees right away, and then the county uses that money to support schools and local services the following month.

The Center for Community Progress says that tax lien sales are a way for local governments to get back money they spent on run-down properties. Some people don’t like this method, especially for homes that have been abandoned. But it does help counties make some quick cash when they need it. 

When counties run low on money, they might sell tax liens. This is because it helps them collect money faster. For example, in Maricopa County, if taxes aren’t paid by the end of December, they get added to any unpaid taxes from before. Then, these are sold at an auction in February. This system makes sure that counties can turn millions of dollars in unpaid taxes into usable money every year.

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A look at Maricopa County’s tax lien statistics

The Treasurer’s office keeps track of all sales and shares detailed information. From 2014 to 2025, they gathered a lot of data. “Parcels advertised” means how many pieces of land are for sale. Some might be taken off the list when owners pay their taxes or if there are legal issues. “Liens sold” counts the certificates sold at the auction. This includes liens brought up the next year and assignment liens. “Struck to state” shows how many liens had no bids at all..

Stable revenue:In the past ten years, the money made from selling liens has stayed between $15 million and $21 million each year. In 2025, the auction brought in over $21 million. This money came from unpaid taxes and was used for public projects. Even when the economy was not doing well, the county still got about $17 to $18 million.

Fewer parcels and lower interest rates: The number of parcels being sold went down a lot from over 34,000 in 2012 to about 17,000 to 21,000 in the past few years. Interest rates, which help decide how much it costs to borrow money, have also dropped. They were nearly 10 percent in 2012. Now, they’re between 2 and 7 percent. When interest rates are lower, it usually means there is more competition among buyers. This also helps people pay their taxes better

State liens decrease: The number of liens that the state takes on has dropped a lot. Back in 2012, there were 6,529 liens. By 2025, that number went down to only 852. More people are getting involved as investors, and because of this, fewer liens are left unsold.

Below are charts showing the trends in revenue and average interest rate for Maricopa County’s tax lien sales from 2014 to 2025.

Revenue trend

Interest rate trend

These charts show that even when the number of parcels sold changes a lot, the money from sold liens stays pretty steady. The interest rates show big drops from 2016 to 2023. Then, in 2024, there’s a big jump. This jump might indicate that more people are seeking liens, but there are fewer available. When there aren’t many liens, people bidding might be okay with paying higher rates.

How tax lien sales support public revenue

Tax lien sales help Maricopa County in several ways:

• Immediate funding: The county gets money from late taxes and fees right away from investors. This helps them pay schools, towns, and special districts on time. Because of this, everyone can count on getting what they need when they need it. It’s a simple way to keep things running smoothly for the community.
  
• Encouraging compliance: If property owners know that unpaid taxes can be sold, they are more likely to pay them on time. If someone doesn’t pay, they can face a tax lien. This lien can add a lot of extra money because it can grow with interest. The interest can reach up to 16 percent. Because of this, many people want to make sure they pay their taxes when they are due. This helps them avoid extra costs and problems.
  
• Reducing administrative costs: When someone sells a lien, the buyer takes responsibility for getting their money back, not the county. This means the buyer has to deal with collecting the money. They also take on the risk if someone doesn’t pay up..
  
• Reclaiming maintenance costs: Tax liens can include the costs that the county incurs for taking care of properties that lack proper maintenance. These might be things like cutting the grass or securing empty houses. Selling the tax lien helps the county get some of that money back.
  
• Providing flexibility: If a lien doesn’t get sold, it turns into a state lien. State liens can be given to someone else at a 16 percent interest rate. After seven years, these liens can lead to a foreclosure. The government will ensure that people eventually pay their taxes

Challenges and considerations

Selling tax liens helps local governments earn money, but it has some problems. When liens are sold on empty houses, those homes can stay empty for a long time. Buyers often want to make money from interest instead of fixing the houses. In places where homes aren’t selling well, some buyers might rent the houses but later leave them empty again. This frustrates local governments because it’s hard to find new owners for these vacant homes. As a result, some cities have stopped selling tax liens. Maricopa County gives unsold liens back to the state and allows buyers to take on liens with a 16 percent interest rate. They help buyers by sharing tips and reminding them that they are buying liens, not the homes. It’s important to check the land carefully before buying. Counties want quick money, but also need to use empty houses in good ways

Frequently asked questions

Conclusion

Maricopa County conducts tax lien sales to turn unpaid property taxes into money. This money helps pay for schools, roads, public safety, and other important services in the community. Every year, the county sells the right to collect these unpaid taxes. By doing this, they raise between $15 million and $21 million. It also shifts the risk of collecting these taxes to investors.

In recent years, the average interest rates for these liens have dropped. This shows that there is good competition among investors and that more people are paying their taxes on time. Some experts worry that lien sales might make it hard to use empty properties again. But the sales bring in needed money and encourage people to pay their taxes when they are due.

Understanding how tax lien sales work is important. It helps both investors and residents see how these sales support the public services we all need.