Sale Type: | Tax sale with a 2-year redemption periodThe legally defined timeframe during which a property owner can reclaim their property by paying the delinquent taxes plus interest and penalties. (tax deedA legal document that transfers property ownership to the government or an investor after the owner fails to pay property taxes for an extended period. if not redeemed) |
Interest Rate: | 1.5% per month plus 5% damages on the taxes, paid by the owner only if the property is redeemed |
Bid Method: | Public auction to the highest bidder for cash (some counties sell online) |
Redemption Period: | 2 years from the day of the sale |
Sale Date(s): | Last Monday of August; first Monday of April in counties that hold a spring sale |
State Statute(s): | Mississippi Code, Title 27, Chapters 41, 43 and 45 (including §§ 27-41-59, 27-43-3 and 27-45-3) |
Land with no bid is struck off to the state | |
State Website: |
How Mississippi Tax Sales Work
When property taxes go unpaid, Mississippi counties sell the land at a public tax sale. The tax collector sells to the highest and best bidder for cash, and the sale covers 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., fees, penalties and damages owed. Here are the basics:
Sales are held on the last Monday of August. A county can also hold a spring sale on the first Monday of April if the tax collector chooses to (Miss. Code § 27-41-59).
The tax collector first offers up to 160 acres, or a smaller separately described subdivision. If that does not raise the amount owed, the whole tract is offered.
Counties can sell online when the board of supervisors approves an agreement with an online provider.
Land that draws no bid is struck off to the state.
Mississippi’s process has features of both systems. The buyer pays the delinquent taxes and costs, the owner keeps the right to redeem for two years, and if no one redeems, the buyer is entitled to a tax deed. Because of this, Mississippi is sometimes grouped with tax lien states and sometimes with tax deed states.
The Two-Year Redemption Period
The owner, anyone acting for the owner with the owner’s consent, or any person with an interest in the land can redeem within two years after the day of the sale (§ 27-45-3). To redeem, they pay the chancery clerk:
All taxes for which the land was sold, plus the costs of the sale
Damages of 5% of those taxes
Interest of 1.5% per month on the taxes and sale costs, counting any part of a month as a full month (roughly 18% per year)
Costs that accrued on the land after the sale, with interest
The redemption amount is based on the taxes the land was sold for, not on what the buyer bid. Special rules extend the time to redeem for minors who inherit or acquire the land by will and for persons of unsound mind. The owner pays the interest and damages, and only if the property is redeemed.
Notice and the Tax Deed
Before the redemption period ends, the chancery clerk must notify the reputed owner. The clerk publishes a notice at least 45 days before the period expires, and for Mississippi residents the sheriff or constable also serves the owner, with a copy sent by certified or registered mail (§ 27-43-3).
Mississippi courts interpret these notice rules strictly in favor of landowners, and tax sales have been voided when the clerk’s search for the owner did not comply with the statute.
If the land is not redeemed, the chancery clerk executes a tax deed to the buyer. Buyers often still need a chancery court order confirming title before they hold clear title, which removes earlier claims and liens. Talk with a qualified attorney about that step.
What Buyers Should Know
Overbids: any amount you bid above the taxes owed earns no interest. If the owner redeems, the county keeps the excess. If the land is not redeemed, the former owner can request it (§ 27-41-77).
Cash bids: bids are for cash, and payment deadlines and accepted methods are set by each county.
Registration: some counties require bidders to register before the sale.
Notice costs: the owner pays the redemption notice fees if the land is redeemed. If it is not, the buyer bears them as part of the costs.
Due diligenceThe research and investigation process an investor conducts before purchasing a tax lien or tax deed to evaluate the property and assess risk.: research the parcel, its title and its condition before you bid.
What This Means for Investors
The statutory redemption amount can look attractive, but it is not a guaranteed return. Your result depends on what happens after you buy. If the owner redeems, you receive the redemption amount, and anything you bid above the taxes owed is not returned to you. If the owner does not redeem, you end up with a property, along with title costs, holding costs and a plan for it. Returns are not guaranteed, and all investing involves risk. Results vary.
What Investors Should Check
The county’s sale notice, including the date, the location or online platform, and the registration and payment rules
The parcel’s location, use, condition and access
The taxes owed compared with your planned bid, so you know how much of your money is an overbid
Title, liens and other claims, using our guide on how to evaluate tax lien properties at auction
The redemption deadline and the clerk’s notice steps
The current statutes and county rules, including how our tax lien states vs. tax deed states map shows each state
This content is for educational purposes only and is not legal, tax or financial advice. Talk with a qualified professional about your own situation.
Learn How Tax Sales Work in a Free Workshop
Every state handles delinquent property taxes differently, and Mississippi’s mix of a tax sale, a two-year redemption period and a tax deed is not the same as a lien certificate or deed auction elsewhere. Register for a Free Workshop with our coaching team to learn how tax liens and tax deeds work and how to research them step by step.