Last Updated on August 29, 2026
Estimated reading time: 3 minutes
Author: Jessa May Bautista
Reviewed by: Josh Blanchard
Fact Checked by: Jack Aldous
Want to get started with Tax Liens? Watch this video! Learn how to get 18-36% returns on your investment and buy property for as little as $500 with Tax Liens & Deeds.
Table of contents
What Is a Tax Lien?
A tax lien is a legal claim by a government agency on a person’s property or assets due to unpaid taxes. It protects the government’s financial interest and stops the owner from selling or refinancing the property until the debt, plus interest and fees, is fully paid.
Key Takeaways
- To start tax lien investing as a beginner, call your county’s tax office for auction details.
- Check if the auction is online to bid conveniently or attend smaller in-person auctions for better deals.
- Consider buying unsold tax liens as Over-the-Counter (OTC) options for immediate ownership and no bidding wars.
- Understand the foreclosure process to know your rights if the property owner defaults on payment.
- Begin with smaller counties, research each lien, and stay organized during the auction process.
How to Get Started Today
Looking to earn 18% to 36% interest with tax lien investing as a beginner? It’s easier than you think. Follow this simple step-by-step guide to start investing today.
Step 1: Call Your County’s Tax Office
Instead of searching online for hours, call the county tax assessor’s office and ask:
- When and where is the tax lien auction?
- What interest rate is offered?
- How do I register to bid?
- What payment methods are accepted?
- Where can I find the list of available tax liens?
Many counties still provide auction lists by mail, so contact them to join their mailing list.
Step 2: Check If the Auction Is Online
Many counties now hold auctions online, meaning you can bid on tax liens from anywhere. Some smaller counties still have in-person auctions, which often have less competition and better deals.
Step 3: Ask About Unsold parcels
Some tax liens fail to sell at auction, allowing beginner investors to purchase them immediately as Over-the-Counter (OTC).
Why OTC liens are great:
- No bidding wars
- Immediate ownership
- Full interest rate applies from day one
Step 4: Understand the Foreclosure Process
If the property owner doesn’t pay, you may be able to foreclose and take ownership. Ask your county about:
- Redemption period length
- Foreclosure process
- How many tax liens were sold last year
Counties with many liens and few bidders offer the best opportunities.
Final Tips for Beginners
- Start with smaller counties for better deals
- Research each lien before buying
- Stay organized with deadlines and payments
- Consider watching an auction before bidding
Get Started Today
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Frequently Asked Questions
A tax lien is a legal claim placed on property for unpaid taxes.
Call the county tax office and ask for auction dates, rules, and property lists.
Many counties use online auctions, while others still hold in-person sales.
OTC tax liens are unsold liens that investors can buy directly from the county.
Review the property, redemption period, interest rules, deadlines, and foreclosure process.
