Sale Type: | Tax Lien Certificates |
Interest Rate: | Up to 16% simple interest per year; the winning rate is set by bid-down and can be lower |
Bid Method: | Bid down interest rate; the lowest rate wins, and many counties sell online |
Owner can redeem until a foreclosureThe legal process by which a lienholder forces the sale of a property to recover the debt owed when the property owner fails to pay. judgment; investor can start foreclosure 3+ years after the sale | |
Sale Date(s): | February (each county sets its date) |
Statute Section(s): | |
Yes (liens unsold at the February auction can be bought from the county treasurer) | |
State Website: | azleg.gov (statutes); your county treasurer’s site for sales. Link it to https://azleg.gov/ |
How Arizona Tax Lien Sales Work
Arizona is a true tax lien state. When property taxes go unpaid, the county treasurer offers the delinquent taxesProperty taxes that remain unpaid past the due date, which may result in penalties, interest, and eventually a tax lien being placed on the property. for sale at an annual auction held in February. An investor who wins pays the overdue taxes and receives a certificate of purchaseA document issued to an investor at a tax sale confirming their purchase of a tax lien or tax deed and detailing the terms of the investment., which is a lien on the property.
Quick distinction: with a tax lien, you buy the debt, not the property. The owner keeps the property, and you earn interest if the owner pays the debt back. A tax deed is a different thing: it transfers the property itself. In Arizona, you only reach a deed if the lien is never redeemed and a court later forecloses.
The Arizona Tax Lien Sale Step by Step
Here is how the process works under Title 42, Chapter 18 of the Arizona Revised Statutes:
Taxes become delinquent. Property taxes are due in two halves. The first half is delinquent after 5:00 p.m. on November 1, and the second half after 5:00 p.m. on May 1.
The list is published. The county treasurer posts the list of unpaid parcels and publishes it in a local newspaper roughly two to three weeks before the sale.
The February auction. Each county sets its own sale date in February. Many counties run the sale online, and some still hold it in person. You usually have to register as a bidder before the sale.
Bid down. Bidding starts at the maximum rate and goes down. The winner is the bidder who accepts the lowest interest rate.
You pay the full amount. The winning bidder pays all the delinquent taxes, interest, penalties and charges on the parcel, not just a deposit.
You receive a certificate of purchase. Interest on the lien runs at your winning bid rate, starting the first day of the month after the purchase.
What Interest Rate Can You Earn?
Arizona’s rate is often described as “16%.” It is better understood as a ceiling.
The rate cannot exceed 16% per year, simple interest (no compounding).
A fraction of a month counts as a whole month.
Because bidders compete by lowering the rate they will accept, your winning rate can be lower than 16%, and you will not know it until you win.
Interest is paid only if and when the lien is redeemed. It is not a guaranteed return, and results vary.
Can Owners Redeem a Tax Lien in Arizona?
Yes. The owner, the owner’s agent, or anyone with a legal or equitable claim in the property can redeem the lien. To redeem, they pay the county treasurer the amount the lien was sold for plus interest at the rate in the certificate. The treasurer then pays the investor.
The three-year mark is not the owner’s deadline. It is the earliest date an investor may start a foreclosure. Owners can generally redeem at any time before a court enters a foreclosure judgment, with limited exceptions.
Foreclosure and the Treasurer’s Deed
If a lien is not redeemed, the investor may file an action in superior court to foreclose the right to redeem. Key rules:
Timing. The action can be filed starting three years after the sale and no later than ten years after the last day of the month in which the lien was acquired.
Notice. The certificate holder must send notice of intent to file by certified mail at least 30 days before filing, and the county treasurer is named in the action.
Judgment. If the court forecloses the right to redeem, it directs the treasurer to deliver a deed to the lien holder. In some cases, the court may instead order a sale to protect the owner’s share of any excess proceeds.
What survives. Foreclosure does not erase easements or certain assessment liens on the property.
Foreclosure takes time and legal costs, and nothing guarantees the outcome. Plan for both possible endings: redemption with interest, or a long process that could end in a deed.
What This Means for Tax Lien Investors in Arizona
Arizona offers a low-cost entry point because you buy the lien, not the property, and many counties publish their lists and run their sales online. After the auction, liens that did not sell can often be bought directly from the county treasurer, which is the over-the-counter route.
Older guides, including earlier versions of this page, described the 16% rate as a flat return and the three-year period as the owner’s redemption deadline. Neither is accurate. The rate is a maximum set by competitive bidding, and owners can redeem until a foreclosure judgment.
What Investors Should Check Before Bidding
Your county treasurer’s tax lien page. It lists the sale date, the auction platform, the registration steps, deposit rules and payment deadlines. Some counties require payment within 24 hours or the same day.
The parcel itself. All sales are final. Review the property, its value compared with the amount owed, and whether prior-year liens already exist.
What you are buying. A lien gives you no right to enter the property or deal with the owner. Your security is the property itself, so a weak property means a weak lien.
Your budget. You must pay the full lien amount, not only the interest you hope to earn.
Ready to go deeper? Read our guide on how to evaluate tax lien properties at auction and our tax lien states vs. tax deed states map to compare Arizona with other states before you bid.
Important Notice
This page is educational and is not legal, tax or financial advice. Statutes, fees and county procedures change, so confirm current rules with your county treasurer and a qualified professional before you invest. All investing involves risk, and results vary.
Learn Tax Lien Investing the Right Way
Arizona is one of many states with its own rules. If you want a clear, step-by-step way to learn how tax liens and tax deeds work, register for a Free Workshop with Tax Lien Wealth Builders. Join 2,000+ students, backed by a 4.9/5 Trustpilot rating and a BBB A+ accreditation, and learn how to research properties and understand the risks before you invest.