Sale Type: | Court-ordered tax sale run by the county Clerk and Master; the owner can redeem |
Interest Rate: | Owner pays 12% per year on the purchase price to redeem; no interest if the owner does not redeem |
Bid Method: | Public auction (in person or online) to the highest bidder; the minimum bid covers taxes, interest, penalties and costs |
1 year if taxes were delinquent 3 years or less; 90 days if more than 3 years (from the order confirming the sale) | |
Sale Date(s): | Set by each county; some hold one sale a year, others hold monthly sales |
State Statute(s): | Tenn. Code Ann. Title 67, Chapter 5 (including §§ 67-5-2501, 67-5-2503 and 67-5-2701) |
Not a standard option; some counties sell unsold parcels later as surplus property | |
State Website: | tn.gov (check the county Clerk and Master for sale notices) |
How Tennessee Tax Sales Work
Tennessee does not sell tax lienA legal claim or right against a property that serves as security for a debt or obligation owed by the property owner. certificates. When property taxes go unpaid, the county, city or town files a delinquent tax suit in chancery court, and the court orders the property sold at a public sale run by the Clerk and Master (the court officer who handles the sale). The buyer pays for the property itself, but the sale is subject to the owner’s equity of redemption. That is why it is called a redeemable sale: the former owner can win the property back for a limited time by repaying what you paid, plus interest and costs (Tenn. Code Ann. § 67-5-2501 and § 67-5-2701).
Key points about the sale:
Who runs it: the Clerk and Master of the county’s chancery court.
How you bid: the court orders a sale for cash, certified funds, cashier’s check, money order or electronic transfer. Sales can be held in person or online. Shelby County, for example, moved its sales online in April 2024.
Minimum bid: the clerk sets it at 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, penalties and collection costs.
Payment: many counties require payment in full the same day. Blount County, for example, accepts only cash or a cashier’s check.
Condition: property is sold as is, where is. The county makes no promises about the parcel.
Timing: each county sets its own schedule. Blount County holds one sale a year, while Davidson County (Nashville) usually holds one sale a month from June to December.
The Order Confirming Sale
The sale is not final when the gavel falls. A chancellor must sign an order confirming the sale. The redemption period runs from the date that order is entered, and Davidson County’s sale notices say so. Once the order is entered, it can give the purchaser the right to possession of the parcel (§ 67-5-2503), but the owner can still redeem. Treat anything you spend before the redemption period ends as at risk.
Redemption: The Owner’s Window to Reclaim the Property
An interested person can redeem by filing a motion in the court that ordered the sale and paying the clerk first. The amount covers:
The delinquent taxes, penalties, interest and court costs
Interest on the entire purchase price you paid, at 12% per year, from the date you paid until the motion to redeem is filed (§ 67-5-2701)
If a redemption succeeds, you are repaid the purchase price plus that interest. The court can also order the person redeeming to reimburse other lawful charges, such as property taxes you paid to preserve the property (§ 67-5-2704). Several county clerks warn that money spent on improvements during the redemption period is not reimbursed, and Tennessee courts have held that a purchaser’s attorney fees are not recoverable under the redemption statute.
Redemption interest is paid only if the owner redeems. If no one redeems, you do not earn it. You keep the property, and your return depends on what the property is worth.
How Long the Redemption Period Lasts
The length of the period depends on how long the taxes were delinquent. Under Public Chapter 971, which took effect July 1, 2026:
If the taxes were delinquent three years or less, the redemption period is one year from the order confirming the sale.
If the taxes were delinquent more than three years, the period is 90 days.
Tennessee law also allows a shorter period in limited cases, and sale notices list the period for each parcel. Older guides, including earlier versions of this page, describe a flat one-year period and a 10% rate. Check which rules apply to the sale you are looking at.
Getting Title
If the redemption period ends without a redemption, the sale becomes final and you hold the property. Counties differ on the paperwork. Some clerks issue a 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. after the redemption period, and Shelby County says its Clerk and Master no longer issues deeds because the recorded order confirming sale serves as the buyer’s proof of title. Tax deeds are generally issued without warranties of title, so research liens, taxes and title before you bid.
Properties That Do Not Sell
If no one bids above the minimum, the county or city may end up holding the parcel. Counties can later sell those properties as surplus, and some publish notices that allow a short period for higher offers (§ 67-5-2507). Procedures differ by county, so contact the county’s Clerk and Master or law director.
What This Means for Investors
Tennessee is a hybrid: you buy the property at court-ordered sale, but the owner has a chance to redeem, and interest is paid only if they do. Your outcome depends on whether the owner redeems, the price you pay, taxes and costs you carry during the redemption period, and, if no one redeems, the condition and title of the property. Returns are not guaranteed. All investing involves risk, and results vary.
What Investors Should Check
The sale notice, including the date, minimum bid, payment rules and how bidders register
The redemption period listed for the parcel you want
Your total cost: price, recurring taxes, and what you could lose if improvements are made and the owner redeems
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 Tennessee attorney about your own situation.
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