New Jersey Tax Lien Certificates

In New Jersey tax lien certificates are sold at each of the 566 municipal Tax Sales. Tax delinquent properties are advertised in a local newspaper prior to the municipal tax sale. Anyone wishing to bid must register preceeding the tax sale. Bids begin at eighteen (18) percent annually, compounded daily, however through competitive bidding interest can be bid down from eighteen (18) percent to zero (0) percent.

If the interest is bid down to zero (0) percent, then a "premium," bid commences. The bidder with the lowest interest rate or the greatest "premium" bid wins the right to purchase the tax lien certificate. It is important to note that the premium amount does not earn interest.

The winning bidder must record the purchase of the tax lien certificate in the County Clerk's Office within 90 days of the purchase or risk losing their interest.

Taxes continue to accrue on the property after the sale of the certificate. Bidders have the option to pay these subsequent taxes; if they are not paid, a tax sale certificate will be sold at the next tax sale. Any subsequent certificate issued will be paramount to any prior certificate. Subsequent taxes paid by the lien holder earn interest at the rate set by the municipality.

After two (2) years, the tax lien certificate owner can initiate proceedings in Superior Court to foreclose on the property. If foreclosure is perfected, then the name on the deed is changed to that of the tax lien certificate owner who can then take possession of the property.

If the tax lien certificate is redeemed by the delinquent property owner prior to foreclosure, the tax lien certificate earns a redemption penalty at the rate of 2, 4, or 6 percent, depending on the amount of the original tax lien certificate, in addition to any interest rate on the certificate.

According to New Jersey Law, on tax lien certificate greater than $200, a penalty of 2% is added to the tax lien certificate, tax lien certificates greater than $5,000 bring a 4% penalty and tax lien certificates greater than $10,000, a 6% penalty is added. Some municipalities include an additional 6% year end penalty on tax lien certificates over $10,000 and could raise the penalty to as much as 12%.

If the tax lien certificate is not redeemed, or the property foreclosed within the five (5) year period, then the premium amount escheats to the municipality.

Tax Sale Type: Tax Lien Certificates Sec. 54:5-46 New Window)

Contact: County Tax Collector (Sec. 54:5-19 New Window)

Interest Rate: 18% per annum (Sec. 54:5-61 New Window and (Sec. 54:5-32 New Window)

Penalty Rate: 4% - 6% (Sec. 54:5-61 New Window and (Sec. 54:5-32 New Window)

Bid Procedure: Bid Down (Sec. 54:5-32 New Window)

Redemption Period: Two (2) years (Sec. 54:5-86 New Window)

Law: New Jersey Revised Statutes, Title 54, Subtitle 2, Chapter 5, "Tax Sale Law." New Window

Additional Notes:

Amount to Redeem: According to (Sec. 54:5-32 New Window) the 'sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest, but in no case in excess of 18% per annum. If at the sale a person shall offer to purchase subject to redemption at a rate of interest less than 1%, he may, in lieu of any rate of interest to redeem, offer a premium over and above the amount of taxes, assessments or other charges, as in this chapter specified, due the municipality, and the property shall be struck off and sold to the bidder who offers to pay the amount of such taxes, assessments or charges, plus the highest amount of premium...'.

In addition, according to (Sec. 54:5-61 New Window ) When the tax title certificate amount shall exceed the sum of two hundred ($200) dollars, the holder, upon redemption of the tax title shall be entitled to collect from the owner or other person having an interest in the lands an additional sum equal to two per cent of the amount so paid for the tax title certificate.

Furthermore, according to (Sec. 54:5-62 New Window ) When the tax title certificate amount shall exceed the sum of $5,000, such additional sum shall be equal to 4% of such amount paid; and when the tax title certificate amount exceeds $10,000, such additional sum shall be equal to 6% of such amount paid. This section shall also apply to all existing tax title certificates held by municipalities on the effective date of P.L.1991, c.75.

New Jersey Tax Sale Discussion

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

Type your question or comment using the form below:

Counties located in New Jersey

The following is a list of counties located in the state of New Jersey.

Tax Lien Certificates for properties located in the following counties are sold at New Jersey 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: 
Atlantic County, NJ  252,552
Bergen County, NJ  884,118
Burlington County, NJ  423,394
Camden County, NJ  508,932
Cape May County, NJ  102,326
Cumberland County, NJ  146,438
Essex County, NJ  793,633
Gloucester County, NJ  254,673
Hudson County, NJ  608,975
Hunterdon County, NJ  121,989
Mercer County, NJ  350,761
Middlesex County, NJ  750,162
Monmouth County, NJ  615,301
Morris County, NJ  470,212
Ocean County, NJ  510,916
Passaic County, NJ  489,049
Salem County, NJ  64,285
Somerset County, NJ  297,490
Sussex County, NJ  144,166
Union County, NJ  522,541
Warren County, NJ  102,437


Tax Lien Certificate Training

Learn the steps and strategies of buying tax liens and tax deeds with our FREE 4-DISC Training Course

You can immediately download the course for no charge or if prefered, pay a small shipping fee and we'll mail it.

Get the FREE Training Course.


Tax Lien Certificate States

Research all fifty (50) states to determine which offers the right interest rate, redemption period, and more.

Click here to learn more.


Customer Support with Tax Lien Certificate Questions

Tax Lien Certificate Reports

Below is a list of free articles on tax lien certificates, tax deeds, and more.


The Rule of 72 Calculator

The rule of 72 says that to find the number of years required to double your investment at a given interest rate, you simply divide the interest rate into 72.


Interest Rate: %
Years Required for Principal to Double
    Exact Answer:
    Rule of 72 Estimate:


For example, if you want to know how long it will take to double your money at 18%, divide 18 by 72 and receive the result of 4 years.


Our Educational Materials

Creating Wealth Without Risk™ was designed to help you get started with government-issued, real estate secured and high-interest tax lien certificates and tax deeds.

Click here to learn more.


Tax Lien University Reviews

"I purchased 3 tax lien certificates at an internet auction for Miami-Dade County, Florida. All three were buildable vacant lots in moderate income neighborhoods. The prices were: (1)$1,018.86 (2) $1,224.90 (3) $1,654.82. I got 18% interest on all of them. I placed 39 bids in total."

- A. Hamad, Florida
June 9, 2011 6:17:32 PM MDT

"I thought that the course were very clear and easy to understand as well as being highly informative and to the point. The information contained within is worth thousands and thousands of dollars. I would recommend that any one serious about being a smart investor buy these books and put it into action!"

- S. Roy, London

"Thank you for your great work. I received you training manuals last night and haven't been able to stop reading. I would recommend this course to anyone who is interested in getting into Tax Lien Certificates."

- J. Bennett, California


Self-help services may not be permitted in all states. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. Your use of this website constitutes acceptance of the disclosures, cisclaimers, privacy policy, no spam policy, and terms of use.

We are required by the FTC to disclose the typical customer results. Quite honestly, the typical customer does not make any money whatsoever. In fact, the typical customer does not even finish the first of six training videos. Less than 1 in 100 ever ask a question of our coaches, leave feedback or otherwise show they're putting in any focused effort at all. Like anything worthwhile, this program does require work. The typical customer puts in very little work. Before you buy, you should stop and ask yourself if you're typical.

Tax Lien University, Inc. and its subsidiary Creating Wealth Without Risk™, Inc. (The Company) does not guarantee income or success, and examples shown at and do not represent an indication of future success or earnings. The Company declares all information shared is true and accurate, and any claims made of actual earnings or examples of actual results can be verified upon request.

The earnings, revenue and profit results that a customer will generally achieve in circumstances similar to those depicted in the endorsements and testimonials on this site depend on many factors and conditions, including but not limited to, work ethic, learning ability, use of the products and services, business experience, daily practices, business opportunities, business connections, market conditions, availability of financing, and local competition, to name a few. Because of impediments due to any one or more of the foregoing and other factors, it is generally expected that no earnings, revenues or profits will be achieved with the use of any products or services advertised on this site in circumstances similar to those referenced in any endorsement or testimonial.

Offer valid in the US and Canda. Limit one (1) copy per household, must be 18 years of age or older. Upon submitting the form above you will be given the choice between a physical 4-Disc version or a digital download version. If you select the physical version the normal retail charge of $39.97 is waved however you will be charged a one-time USPS shipping and handling charge of $9.95. If you select the digital download version there will be no charge and you can immediately download the contents of your selection.