Indiana Tax Lien Certificates


In the state of Indiana tax lien certificates are sold at each of the 92 county tax sales. Approximately 50 days before the county tax sale the county will publish a listing of parcels on which tax lien certificates will be offered; once each week for three (3) consecutive weeks, with the final advertisement being not less than thirty (30) days before the tax sale.

Anyone wishing to bid must register preceding the Indiana county tax lien certificate tax sale. The county treasurer shall sell the tract or real property, subject to the right of redemption, to the highest bidder at public auction.

If the purchaser of an Indiana tax lien certificate fails to pay the bid, the real property will be offered again for sale. In addition, the purchaser who fails to pay the bid shall pay a penalty of twenty-five percent (25%) of the amount of the bid.

Tax lien certificates not sold at the initial Indiana county tax lien certificate tax sale my be offered at a subsequent or expedited tax lien certificate tax sale which is held 'after January 1st and before March 31st of the year immediately following the year in which the property was initially offered for sale...'

Tax lien certificates not sold at either the initial Indiana county tax lien certificate sale or the subsequent Indiana tax lien certificate tax sale are sold to the county.

According to Indiana statute 'any person may redeem the tract or real property...' The interest rate charged to redeem is contingent on how much time has elapsed since the sale of the Indiana tax lien certificate.

Interest paid on Indiana tax lien certificates will vary from 10% to 15% on the minimum bid which represents delinquent taxes, special assessments and an additional 10% on the overbid which represents the amount in excess of the minimum bid.

If the delinquent owner or any other person redeems within six (6) months from the date of the Indiana county tax sale he or she will pay one hundred ten percent (110%) of the minimum bid for which the tract or real property was offered at the time of the Indiana county tax sale.

If the delinquent owner or any other person redeems after six (6) months but not more than (1) year after the date of sale he or she will pay one hundred fifteen percent (115%) of the minimum bid for which the tract or real property was offered at the time of sale.

In addition to the amount required for the minimum bid, the total amount required for redemption includes the amount by which the purchase price exceeds the minimum bid (referred to as the overbid) on the real property plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid on the property.

Finally, in addition to the amount required for the minimum bid and the overbid, the total amount required for redemption includes all taxes and special assessments upon the property paid by the purchaser AFTER the sale (referred to as the subsequent taxes) plus ten percent (10%) interest per annum on those taxes and special assessments.

If the 'tract or real property...' is not redeemed before the expiration of the one (1) year redemption period the owner of the tax lien certificate can apply for a tax deed to the property but not later than six (6) months after the one (1) year redemption period has expired. If the purchaser of the tax lien certificate fails to apply for a tax deed within six (6) months of the end of the redemption period, that person's lien against the 'tract or real property...' is terminated at the end of that period.

A purchaser of an Indiana tax lien certificate is entitled to a tax deed to the property for which the tax lien certificate was sold only if the redemption period has expired; the property has not been redeemed within the period of redemption; and not later than ninety (90) days after the date of sale of the tax lien certificate the purchaser gives notice of the sale to the owner of record at the time of the sale and any person with a substantial property interest of public record in the tract or real property.

Furthermore, the purchaser is entitled to a tax deed to the property if the one (1) year redemption period has expired and not later than nine (9) months after the date of the sale the purchaser gives notice of the sale to the owner of record at the time of the sale and any person with a substantial property interest of public record in the tract or real property.

Upon receiving a tax deed the owner of the tax deed may initiate an action in the court that entered the judgment and order for sale to quiet the title to the property.

If the court finds that the plaintiff's title is invalid and that the plaintiff is not entitled to a refund, the court shall determine the amount due the plaintiff and from whom the amount is due. The court shall order that the sum so determined be paid within a reasonable time. If the payment is not made, the court shall order that the real property be sold to pay the judgment and that the right of redemption of the defendants to the suit, and all persons claiming under them, is foreclosed. When real property is sold under this section, the sheriff shall, upon payment of the purchase money, execute and deliver to the purchaser a deed in fee simple for the real property. The purchaser may then take immediate possession of the real property, and there is no right of redemption from the sale.

Tax Sale Type: Tax Lien Certificates (Sec. 6-1.1-24-9 New Window)

Contact: County Tax Collector (Sec. 6-1.1-24-5(e) New Window)

Interest Rate: 10% per annum (Sec. 6-1.1-25-2 New Window)

Penalty Rate: 10% to 15% (Sec. 6-1.1-25-2 New Window)

Bid Procedure: Premium Bid (Sec. 6-1.1-24-5 New Window)

Redemption Period: One (1) year (Sec. 6-1.1-25-4 New Window)

Law: Indiana Code, Title 6, Article 1.1, Chapter 24, "Sale of Real Property When Taxes or Special Assessments Become Delinquent," and Chapter 25, "Redemption of and Tax Deeds for Real Property Sold for Delinquent Taxes and Special Assessments." New Window

Additional Notes:

Penalty interest rate paid upon redemption The tax lien certificate holder will receive a 10% to 15%, depending on when the home owner exercises his or her right to redeem. According to (Sec. 6-1.1-25-2 New Window) when redeemed, the home owner will have to pay as follows:

    For the minimum bid (delinquent taxes, special assessments, etc.):

  • (110%) of the minimum bid if redeemed 'not more than six (6) months after the date of sale; or'
  • (115%) of the minimum bid if redeemed 'more than six (6) months but not more than one (1) year after the date of the sale.'

    For the overbid (the amount over and above the minimum):

  • 'plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid on the property.'

Applying for a tax deed: According to (Sec. 6-1.1-25-4.6 New Window) the owner of the tax lien certificate must apply for the tax deed 'not later than six (6) months after the one year redemption period has expired.'

Consquently, according to (Sec. 6-1.1-25-7 (a) New Window) if the purchaser 'fails to file the petition within the period provided in section 4.6 of this chapter, that person's lien against the real property terminates at the end of that period.'

In addition, according to (Sec. 6-1.1-25-7 (b) New Window):

'If the notice under section 4.5 of this chapter is not given within the period specified in section 4.5(a)(3) or 4.5(c)(3) of this chapter, the lien of the: (1) purchaser of the property; or (2) purchaser of the certificate of sale under IC 6-1.1-24; against the real property terminates at the end of that period.'

'Notice' according to (Sec. 6-1.1-25-4.5 New Window) includes a notice 'not later than ninety (90) days after the date of sale of the certificate' and a second notice ' not later than nine (9) months after the date of the sale'.

Tax Sale Overbids. According to (Sec. 6-1.1-24-6.4 New Window) when the amount bid for the purchase of tax lien certificate is tendered the county treasurer is instructed to satisfy delinquent taxes and then distribute the tax sale tax sale overages, tax sale overbids, and tax sale excess funds as follows:

Sec 6.4 (a) When a certificate of sale is sold under this chapter, the purchaser at the sale shall immediately pay the amount of the bid to the county treasurer. The county treasurer shall apply the payment in the following manner:

(1) First, to the taxes, special assessments, penalties, and costs described in section 5(e) of this chapter.

(2) Second, to other delinquent property taxes in the manner provided in IC 6-1.1-23-5(b).

(3) Third, to a separate "tax sale surplus fund".

Sec 6.4 (b) The:

(1) owner of record of the real property at the time the tax deed is issued who is divested of ownership by the issuance of a tax deed; or

(2) purchaser of the certificate or the purchaser's assignee, upon redemption of the tract or item of real property; may file a verified claim for money that is deposited in the tax sale surplus fund. If the claim is approved by the county auditor and the county treasurer, the county auditor shall issue a warrant to the claimant for the amount due.

Sec 6.4 (c) An amount deposited in the tax sale surplus fund shall be transferred by the county auditor to the county general fund and may not be disbursed under subsection (b) if it is claimed more than three (3) years after the date of its receipt.

Sec 6.4 (d) Upon the assignment of the certificate of sale to the purchaser, the county auditor shall indicate on the certificate the amount for which the certificate of sale was sold.

Indiana Tax Sale Discussion

Below you will find a collection of the latest user questions and comments relating to Tax Lien Certificates Indiana.

Counties / Municipalities located in Indiana

The following is a list of counties located in the state of Indiana. Tax Lien Certificates for properties located in the following counties are sold at Indiana county tax sales.

Learn more about each county's individual tax sale process by clicking on the name of the county for which you are interested from the list below:

County/Municipality:  Population: 
Adams County, IN  33,625
Allen County, IN  331,849
Bartholomew County, IN  71,435
Benton County, IN  9,421
Blackford County, IN  14,048
Boone County, IN  46,107
Brown County, IN  14,957
Carroll County, IN  20,165
Cass County, IN  40,930
Clark County, IN  96,472
Clay County, IN  26,556
Clinton County, IN  33,866
Crawford County, IN  10,743
Daviess County, IN  29,820
Dearborn County, IN  46,109
Decatur County, IN  24,555
Dekalb County, IN  40,285
Delaware County, IN  118,769
Dubois County, IN  39,674
Elkhart County, IN  182,791
Fayette County, IN  25,588
Floyd County, IN  70,823
Fountain County, IN  17,954
Franklin County, IN  22,151
Fulton County, IN  20,511
Gibson County, IN  32,500
Grant County, IN  73,403
Greene County, IN  33,157
Hamilton County, IN  182,740
Hancock County, IN  55,391
Harrison County, IN  34,325
Hendricks County, IN  104,093
Henry County, IN  48,508
Howard County, IN  84,964
Huntington County, IN  38,075
Jackson County, IN  41,335
Jasper County, IN  30,043
Jay County, IN  21,806
Jefferson County, IN  31,705
Jennings County, IN  27,554
Johnson County, IN  115,209
Knox County, IN  39,256
Kosciusko County, IN  74,057
La Porte County, IN  110,106
Lagrange County, IN  34,909
Lake County, IN  484,564
Lawrence County, IN  45,922
Madison County, IN  133,358
Marion County, IN  860,454
Marshall County, IN  45,128
Martin County, IN  10,369
Miami County, IN  36,082
Monroe County, IN  120,563
Montgomery County, IN  37,629
Morgan County, IN  66,689
Newton County, IN  14,566
Noble County, IN  46,275
Ohio County, IN  5,623
Orange County, IN  19,306
Owen County, IN  21,786
Parke County, IN  17,241
Perry County, IN  18,899
Pike County, IN  12,837
Porter County, IN  146,798
Posey County, IN  27,061
Pulaski County, IN  13,755
Putnam County, IN  36,019
Randolph County, IN  27,401
Ripley County, IN  26,523
Rush County, IN  18,261
Scott County, IN  22,960
Shelby County, IN  43,445
Spencer County, IN  20,391
St. Joseph County, IN  265,559
Starke County, IN  23,556
Steuben County, IN  33,214
Sullivan County, IN  21,751
Switzerland County, IN  9,065
Tippecanoe County, IN  148,955
Tipton County, IN  16,577
Union County, IN  7,349
Vanderburgh County, IN  171,922
Vermillion County, IN  16,788
Vigo County, IN  105,848
Wabash County, IN  34,960
Warren County, IN  8,419
Warrick County, IN  52,383
Washington County, IN  27,223
Wayne County, IN  71,097
Wells County, IN  27,600
White County, IN  25,267
Whitley County, IN  30,707




Tax Sale

Cheat Sheet

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