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 its claim

    Not the property — the claim against it for those unpaid taxes. The buyer advances the county its money owed.

  3. 03

    The owner clears the claim

    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

Not the property — the county’s claim against it for unpaid taxes. The owner clears that claim by paying the taxes back with statutory interest, 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 the lien at its then-current redemptive value; if that option is not exercised, you may have the right to receive the underlying certificate in kind, subject to applicable law and platform terms. The certificate becomes eligible for foreclosure under state law on its own schedule — that describes the certificate, not an action open to 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 county sells
Florida Tax CertificateFlorida

A tax certificate: the county’s claim for the unpaid taxes on a parcel, sold at a tax sale 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 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 county 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
⚠️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 certificate becomes eligible for foreclosure under state law. It describes the certificate, not an action open to you — tokens are acquired and held until redemption or term end.