How tax liens work

Start from zero: what a county is actually selling, what the property owner owes to get it back, and why the answer changes at the state line.

  1. 01

    A tax bill goes unpaid

    Property taxes fund the county. When an owner does not pay, the county is short the money but still has to run.

  2. 02

    The county sells to recover them

    What it sells is a tax lien certificate in some states, and in others a deed the owner keeps the right to redeem. Either way the buyer advances the county its money owed.

  3. 03

    The owner pays it back

    For a period set by state law, the owner can pay the taxes back plus a statutory charge on top. Most do.

  4. 04

    That payment is the return

    The holder receives the redemption value, less applicable fees, and the position closes. How the statutory charge is worked out is where the states differ.

What you are buying

The token is not the property. It is a position in what the local taxing authority sold to recover unpaid taxes on it — a tax lien certificate in some states, and in others a deed the owner keeps the right to redeem. The owner clears what is owed by paying the taxes back with the statutory charge, and when they do you receive the expected redemption value, less applicable fees, and the token is retired.

If the term ends with no redemption, the original seller may have the option to repurchase or redeem the asset at its then-current redemption value. If that option is not exercised, you may have the right to receive the underlying asset in kind, subject to applicable law and platform terms. Any rights or remedies associated with the underlying asset — foreclosure among them — are governed by applicable state law and the terms specific to that asset, and are not necessarily rights exercisable by a token holder.

The rules change at the state line

Every state writes its own answer to "what does the owner owe, and for how long". This page covers Florida and Texas. Pick one on the map — everything below it is that state's statute, and nothing on this page blends two.

LienFi operates here — pick oneNot yet

Selected state

Florida

Interest per month begun, with a guaranteed minimum charge.

Clock starts
Certificate issue date
Redemption window
24 months
The charge
Interest, per calendar month begun

ViewingFlorida

What the jurisdiction sells
Florida Tax CertificateFlorida

A tax certificate: the claim for unpaid taxes on a parcel, sold at a tax sale by the county tax collector and carrying a statutory interest rate on its face value.

How long the owner has
Florida

The clock starts when the certificate is issued.

Every property24 months
How the payoff grows
Florida

Interest is charged for each calendar month the term has *begun*, not day by day — so the amount owed steps up on a monthly boundary rather than sliding. Underneath that sits a guaranteed minimum: Florida charges no less than 5% of face value however early the owner pays. Early in the term the monthly interest has not caught up with that floor yet, which is why the first stretch of a Florida payoff is flat.

On top of a $25,000 face value$6,250 by maturity
$1,250 on day one
2026-01-012028-01-01
A worked example
Florida

One made-up lien, priced by the same calculator that values every lien on the marketplace. Illustrative only — not an offer, and not a lien that exists.

Face value
$25,000
Statutory rate
12%
Clock starts
2026-01-01
Redemption deadline
2028-01-01
What the property owner pays to redeem this example lien at maturity
Face value$25,000
Statutory interest to maturity$6,250
What the owner pays to redeem$31,250
When the window closes
Florida

The certificate reaches the end of its redemption term. Redemption after that point is a normal, supported outcome rather than a failure — it simply settles as an expired redemption instead of an early one. What the date itself opens is a remedy rather than a payment: it is also the date the underlying certificate becomes eligible for foreclosure under state law. That is a step against the property, taken under the certificate — not an action open to a token holder.

What newcomers get wrong about Florida

The flat opening stretch is the minimum charge, not a stalled lien. Once monthly interest overtakes the floor the payoff starts climbing, and the date it does so depends on the certificate’s own rate.
Side by side
The statutory rules for every state this page covers, side by side
RuleFloridaTexas
What the jurisdiction sellsFlorida Tax CertificateTexas Redeemable Deed
Clock starts fromCertificate issue dateDeed recorded date
How long the owner has24 months2 years — homestead or agricultural; 180 days — every other property
What the owner is chargedInterest, per calendar month begunNo interest — a flat premium on the bid (25%, then 50%)
Guaranteed minimum5% of face value, however earlyNone
Separate penaltyNoneNone
Property class changes the moneyNoYes
Window closing converts to propertyNoYes
Statute cited in our codeTex. Tax Code § 34.21
Accrued Interest
Statutory interest the asset has earned since it was issued — in Texas, the statutory redemption premium instead. It is already counted inside the redemptive value, not added on top of it.
Acquisition Source
How LienFi obtained the underlying asset: auction, meaning at the sale the county or municipality itself runs — a tax lien sale for a certificate, a tax deed auction for a redeemable deed — or secondary, meaning from a prior holder.
Assessed Value
The value the county or municipality that taxes the underlying property has assessed it at. It is a tax-roll figure, not a market appraisal or a sale price.
Blended APY
The statutory charge over the asset’s full term — interest plus any penalty — restated as an annual rate on face value. It is not a return on what a buyer pays, and a one-off penalty is spread across the term rather than counted in a single year.
Case Number
The court cause number that identifies a redeemable deed. The property is sold at a tax deed auction once its taxes are delinquent and the county or municipality issues the deed after that sale, so no certificate number is ever assigned — the cause number from the delinquent-tax case is what the paperwork carries.
Certificate Number
The number the county or municipality assigned to a tax lien certificate when it sold the unpaid taxes. A redeemable deed has none — see Case Number.
Discount / Premium
How the listing price compares with the redemptive value: a discount is priced below it, a premium above it. A lien priced exactly at redemptive value shows neither.
Estimated Additional
A flat percentage of the assessed property value, set per lien — that is the whole calculation. It is not an appraisal or a forecast, and no payoff figure on this page includes it.
Face Value
The unpaid tax amount the county or municipality sold, and the principal that statutory interest is charged on. The purchase dialog calls the same number the Lien Amount.
Foreclosure Eligibility
The date the underlying asset becomes eligible for foreclosure under state law. It describes the asset, not an action open to you — tokens are acquired and held until redemption or term end.
Interest Rate
The statutory rate this asset earns on its face value. What you actually make depends on when the owner redeems.
LienFi Fee
LienFi’s share of your gain at redemption: a percentage of the amount above what you paid, never of your principal. If the lien redeems at or below what you paid, there is no fee.
Listing Price
The price this lien is offered at. It is the entire amount transferred when someone buys it — network gas is the only other cost.
Listing type
How the seller set the asking price. Par is priced at the redemptive value, so it rises as interest accrues; Fixed price is a flat amount that does not move; Discount and Premium are a set percentage either side of the redemptive value, recalculated on every quote.
LTV Ratio
Lien face value as a share of assessed property value. The marketplace filters call the same number Loan to value.
Maturity Date
The end of the lien’s redemption term. Maturity, Redemption Period and Redeems Before all refer to this same deadline.
Parcel ID
The identifier the county or municipality uses for the taxed parcel itself. It is not the certificate or case number, and not the token ID.
Penalty Rate
Recorded with the asset for reference only. No number on this page uses it — where New Jersey charges a penalty, that penalty comes from a face-value tier table instead.
Per year
Your projected profit restated as an annual rate, so liens with different term lengths can be compared. Net of LienFi’s share of the gain, like the payoff and profit figures above it. The owner may redeem earlier, which changes what this works out to.
Purchase Price
What the current holder paid for this lien. Onchain it is the cost basis LienFi measures its fee against when the lien is redeemed.
Redemption Premium
Texas pays no interest. To redeem, the owner repays the winning bid plus a statutory premium on it — 25%, rising to 50% after the first anniversary on homestead and agricultural property, the only classes with a second year.
Redemptive Value
What the property owner would have to pay today to clear the lien — face value plus statutory interest and fees. This is a calculated estimate only; the final redemption amount is governed exclusively by state statute, and LienFi makes no warranty that the estimate will match it.
Total Yield to Maturity
The gain from the listing price up to the redemptive value at maturity, as a percentage of the listing price, over the whole term rather than per year. It is gross: LienFi’s share of the gain is not deducted.
What this page is not

Educational only

Nothing here is legal, tax or investment advice, and none of it is an offer. The figures are calculated estimates; the final redemption amount is governed exclusively by state statute, and LienFi makes no warranty that an estimate will match it.

The rules described are the ones this platform applies when it prices a lien. They are a summary, not the statute, and statutes change.

LienFi Fee

LienFi’s share of your gain at redemption: a percentage of the amount above what you paid, never of your principal. If the lien redeems at or below what you paid, there is no fee.

LienFi’s fees, by the event that triggers them
WhenPaid byCharge
You buy a lienNothing on top of the listing price. That price is the entire amount transferred; network gas is the only other cost.
It redeems for more than you paidYou10% of the gain — the amount above what you paid, never your principal.
It redeems at or below what you paidNothing. The fee is charged on gain, so there is none to charge.
You list a lien for saleNothing. Listing moves no money.
You resell a lien you boughtYou, from the proceeds2% of the sale price, plus 10% of your gain over what you paid for it. If you sell at or below what you paid, only the 2% applies.
LienFi sells a lien for the first timeThe seller, from the proceeds2% of the sale price, plus 10% of any amount the price sits above the redemptive value. Instead of the row above, not on top of it — a lien nobody has bought yet has no purchase price to measure a gain against.

These are the rates configured onchain today. They are versioned settings rather than terms of your position — the redemption rate in particular is read from the chain at the moment a lien redeems, so it is the rate in force then that applies. Every lien page shows the rate attached to that lien, and shows its figures before fees when the rate cannot be read.

Foreclosure Eligibility

The date the underlying asset becomes eligible for foreclosure under state law. It describes the asset, not an action open to you — tokens are acquired and held until redemption or term end.