Sale Type: | Tax lien certificateA legal document issued by a government authority when a property owner fails to pay property taxes, granting the certificate holder a lien on the property. sale run by the county treasurer |
Interest Rate: | 14% per year, paid by the owner only if the property is redeemed (set by statute; the Legislature can adjust it) |
Bid Method: | Buyer pays the taxes, interest and costs; many counties use a round-robin draw. There is no bidding up the price. |
3 years before a deed can be demanded (2 years for vacant and abandoned property); the holder then has 9 months to demand a deed or foreclose | |
Sale Date(s): | First Monday in March each year |
State Statute(s): | Neb. Rev. Stat. Chapter 77, Article 18 (including §§ 77-1802, 77-1807, 77-1824 and 77-1837) |
Not a standard option; ask the county treasurer how unsold parcels are handled | |
State Website: | nebraskalegislature.gov (statutes); contact the county treasurer for sale details |
How Nebraska Tax Sales Work
Nebraska is a tax lien certificate state. When property taxes go unpaid, the county treasurer holds a public sale, and the buyer pays 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., interest and costs. In return, the buyer receives a tax sale certificate, not the property. Several county treasurers say it plainly: you are buying the delinquent taxes, not the property, and you have no authority over the property.
Here is how the sale works under Nebraska Revised Statutes, Chapter 77, Article 18:
Notice: the county treasurer lists the delinquent real property four to six weeks before the sale (§ 77-1802). Counties also advertise in the local paper in the weeks before.
When: the sale is held on the first Monday in March each year at the county courthouse or another location the treasurer designates, and it can continue from day to day until the property has been offered (§ 77-1806).
Registration: bidders must register with the county treasurer before the sale and pay a $25 registration fee that is not refundable even if the owner redeems. Foreign corporations must show a registered agent with the Secretary of State (§ 77-1807).
Price: the buyer pays the taxes, delinquent interest and costs due on the parcel.
Administrative fee: if a certificate is issued, an administrative fee of $150 per parcel is added. The owner pays it at redemption, and the county passes it to the investor (§ 77-1818).
How Bidding Works
Older guides, including earlier versions of this page, describe a “bid down the ownership” method. That method applied to sales before January 1, 2015. The current statute says the purchaser is the person who offers to pay the taxes, interest and costs due. Many counties run a round-robin format: bidders get a random number, take turns choosing one parcel per round, and may pass. The treasurer announces the bidding rules at the start of the sale, and the rules apply to everyone. A land bank can also receive an automatically accepted bid on a property, in which case the land bank is the purchaser (§ 77-1807).
Because buyers do not bid up the price, there is no overbid. You choose parcels, not prices.
Redemption: How Investors Earn Interest
The owner or another person entitled to redeem can pay the county treasurer at any time before foreclosure proceedings begin (§ 77-1917). To redeem, the person pays:
The amount on your certificate
Interest at 14% per year, from the date of purchase to the date of redemption (§ 77-1824 and § 45-104.01, a rate the Legislature can adjust)
Any later taxes you paid, with interest at the same rate
The issuance fee and the administrative fee
You must keep paying the property taxes on the parcel as they become delinquent, and you are repaid with interest if the owner redeems. Interest is only paid if the owner redeems. If no one redeems, your return depends on whether you can obtain the deed or foreclose, and on what the property is worth.
If No One Redeems
Nebraska gives the owner three years before a certificate holder can demand a deed. For property found to be vacant and abandoned, the period is two years (§ 77-1837). After that, the holder has nine months to act. There are two routes:
Tax deed: you apply to the county treasurer, with proof that required notices were served and a title search. Once issued, a tax deed passes title free and clear of encumbrances, according to the Nebraska Supreme Court.
Judicial foreclosure: you sue to foreclose the lien (§ 77-1902). Surplus proceeds are distributed as in a mortgage foreclosure.
Foreclosure is required if 110% of the property’s assessed value, less the amount needed to redeem, is more than $25,000. If you miss the deadline to demand a deed or foreclose, the certificate stops being valid and the lien is released (§ 77-1856). Rules in effect when your certificate was issued generally govern, so check the law that applies to your certificate (§ 77-1837.01). Most buyers work with a Nebraska attorney when a certificate matures.
Properties That Do Not Sell
If a parcel does not sell, the county may pursue judicial foreclosure on the unpaid taxes. Contact the county treasurer to ask how unsold parcels are handled in that county, because practices vary.
What This Means for Investors
Nebraska can pay a fixed, statutory rate, but you are investing for interest, and the path to a deed is long and rule-heavy. Your outcome depends on whether the owner redeems, the taxes you pay while you hold the certificate, and, if no one redeems, the legal work and the property’s condition and title. Returns are not guaranteed. All investing involves risk, and results vary.
What Investors Should Check
The county treasurer’s delinquent tax list, registration deadline and bidding format
Your total cost: taxes, fees, and the subsequent taxesAdditional property taxes that become due after the initial tax lien certificate is purchased. Lien holders may need to pay these to protect their investment. you must pay
The timeline for the tax deed or foreclosure route, and who will handle it
Title, liens and condition, using our guide on how to evaluate tax lien properties at auction
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 Nebraska attorney about your own situation.
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