Investing In Florida

Last Updated on September 9, 2025

Florida is one of a handful of states where investors can earn money from tax liens (you earn interest while the owner pays off back taxes) and tax deeds (you buy the property if taxes are not paid). This dual system means you can chase high interest rates or buy real estate at a steep discount. Below we explain how Florida’s process works, how to calculate returns and what to watch out for based on our experience and the official rules.

What makes Florida tax lien investing different?

Most states offer either tax liens or tax deeds. Florida offers both. Every spring the county tax collector advertises delinquent taxes and then sells tax certificates, which are liens on the property. The winning bidder pays the unpaid taxes in exchange for a certificate that earns interest until the owner redeems it. If the taxes are not paid within two years, you can apply for a tax deed and the property is auctioned. The blend of liens and deeds means you must decide whether you are chasing interest or hoping to own real estate. Florida also has a huge inventory of certificates because counties hold sales every year.

When do Florida counties auction tax certificates?

Florida taxes become delinquent on April 1 each year and the county must advertise those delinquencies in a local paper for three consecutive weeks. The tax certificate sale occurs on or before June 1. Some counties require you to pre‑register online in May, so contact the tax collector early. For example, the Flagler County Tax Collector notes that the sale must be held before June 1 and that the delinquent taxes are advertised ahead of the sale. Certificates that do not sell at the auction are “struck” to the county and become county‑held certificates carrying 18 % interest. Investors can buy these over‑the‑counter certificates directly from the county.

How does the bidding process work?

During the auction the interest rate starts at 18 % and bidders compete by bidding down the rate. Florida counties use quarter‑percent increments. If you bid 17.75 %, another bidder can bid 17.50 %, and so on, until someone accepts the lowest rate they are willing to earn. Bids can go as low as 0 %. A bid of zero earns no interest and there is no minimum penalty. For any winning bid above zero, Florida guarantees that you will earn either the bid interest or a minimum five‑percent return when the owner redeems, so bidding below five percent only shortens your return without any benefit. Many counties use proxy bidding, meaning the system automatically lowers your bid until your minimum is reached.

How is interest calculated on Florida tax certificates?

Florida uses simple interest, calculated monthly, not daily. Suppose you buy a certificate at the full 18 %. Dividing 18 % by 12 months gives 1.5 % per month. If the owner redeems after three months, you would earn 4.5 % interest (3 × 1.5 %). However, because Florida guarantees at least five percent, your return would be bumped to 5 %. If the certificate is bid down below five percent you still get the five‑percent minimum. Certificates awarded at zero percent earn nothing, so avoid zero bids unless you are trying to acquire a property and are willing to get no interest. Interest accrues from June 1 each year.

What happens if the certificate is not redeemed?

If the taxes are unpaid two years after April 1, you can apply for a tax deed. The application fee covers title searches and other costs. Once filed, the clerk schedules a tax deed sale within roughly three to four months. At the sale, the property is auctioned to the highest bidder and your lien does not give you priority – you must outbid others if you want the property. If someone else wins, they must reimburse your principal plus accrued interest. Florida statutes also require a higher opening bid for homestead properties – half the assessed value plus the certificate and costs – to protect homeowners. For non‑homestead parcels, the opening bid equals the taxes, interest and costs. Certificates expire after seven years from the sale date. If you forget to file for a deed before then, the lien is cancelled and you lose your investment.

Where can you find over‑the‑counter certificates and tax deeds?

Unsold certificates become county‑held certificates that you can purchase from the tax collecto. These certificates earn 18 % interest until the owner pays or the certificate expires. Many counties list them online. For example:

• Sarasota County: The county’s tax collector website lists unsold certificates and gives instructions for buying over‑the‑counter. You can review the county’s auction rules, pre‑register and purchase county‑held certificates directly.
  
• Broward County: Broward operates an online auction called Bid Broward where you can bid on certificates. After the sale, you can scroll through the list of unsold certificates and buy them immediately. The site also hosts frequent auctions for tax deeds.
  
• Hillsborough County: Hillsborough’s tax collector has separate portals for tax deeds and over‑the‑counter certificates. Tax deed sales are held on Thursdays at 10 a.m.. Unsold certificates are available through a portal labelled “County Held Certificates” with automatic 18 % interest.
  

Each county uses a slightly different interface, but most rely on the same software vendor (Grant Street) so the portals look similar. Always read the instructions and verify sale dates because some counties change schedules or require deposits. You can also call the tax collector’s office to confirm details.

Do you need an LLC and U.S. bank account?

Many investors form a limited liability company (LLC) to separate their personal assets from their investing activities. An LLC can help manage risk and make it easier to open a business bank account. If you live outside the United States, you may need an Individual Taxpayer Identification Number (ITIN) and a U.S. bank account to bid at online auctions. We recommend consulting an attorney or accountant familiar with U.S. real‑estate investing to understand your obligations.

Key tips & best practices

• Know your goal: Decide whether you want to earn interest (tax lien investing) or acquire property (tax deed investing). Bidding too low reduces your returns.
  
• Pre‑register and read the rules: Some counties require registration before you bid and may require deposits. Study the county auction rules and schedule.
  
• Understand the minimum return: Florida guarantees at least 5 % if you bid above zero, so avoid bids below that if you want interest.
  
• Track your certificates: Florida certificates expire after seven years. Set reminders so you can apply for a tax deed in time.
  
• Don’t contact property owners: Florida law forbids certificate holders from pressuring owners to pay. Violating this rule can get you banned from future auctions.
  
• Research homestead properties: Homestead parcels require a higher opening bid (half the assessed value), so be sure to factor that into your calculations.
  
• Do your due diligence: Inspect properties when possible, check for other liens, and verify that there are no environmental or structural issues. Our guide on how to pick properties for tax deed sales explains how to build and narrow your list.
  

FAQ

Final thoughts and next steps

Florida’s combination of tax liens and tax deeds offers opportunities for both passive interest and bargain real estate. Understanding the timeline, bidding rules, interest calculations and redemption periods helps you avoid costly mistakes. If you’re ready to learn more, we offer free resources and personalised help, Our mini‑course shows you how to buy tax lien & deed properties for pennies on the dollar. Get the course and start today.  Need hands‑on guidance? Book a free call with us to discuss your goals and get a plan tailored to your situation.