Arizona Tax Deed Due Diligence
Arizona is a tax-lien state, not a tax-deed state. Counties sell tax lien certificates (Certificates of Purchase) at auction. The investor does not receive the property at the sale — they buy the delinquent tax debt and earn interest. Ownership is only possible later, through a judicial foreclosure, if the owner never redeems.
Arizona is a tax-lien state, not a tax-deed state. Counties sell tax lien certificates (Certificates of Purchase) at auction. The investor does not receive the property at the sale — they buy the delinquent tax debt and earn interest. Ownership is only possible later, through a judicial foreclosure, if the owner never redeems.
Sale type
Tax lien certificate (not a deed sale)
Redemption in brief
Tax lien state
Redemption rights
Under A.R.S. Title 42, Ch. 18, the property owner may redeem the certificate by paying the delinquent taxes plus interest. The maximum interest rate is 16% per annum, and auctions are bid down by interest rate (A.R.S. §42-18053). A certificate holder may bring a judicial action to foreclose the right of redemption after three years from the date of the sale (A.R.S. §42-18201) if the lien has not been redeemed.
How the sale works
County treasurers hold annual tax lien sales (often online). Investors bid down the interest rate they are willing to accept, starting at the 16% statutory maximum. The winning bidder receives a Certificate of Purchase, not a deed. A treasurer's deed is only obtained after a successful foreclosure action.
What to verify before you bid
- That you understand this is a lien purchase — you are buying interest income, not the property.
- The three-year window before you can foreclose the right of redemption (A.R.S. §42-18201).
- The condition and marketability of the property in case it goes to foreclosure and you take title.
- Any senior liens, including federal tax liens, that could complicate a later treasurer’s deed.
Key dates & deadlines
| Sale | Annual county tax lien auction; interest bid down from 16% max (A.R.S. §42-18053). |
| Redemption | Owner may redeem until foreclosure; certificate earns interest until then. |
| Foreclosure eligibility | Judicial foreclosure of redemption allowed after 3 years from sale (A.R.S. §42-18201). |
Lien survival note
Because Arizona is a lien state, the survival analysis differs from deed states: you initially hold a lien, not title. If you eventually foreclose and take a treasurer's deed, confirm what liens the judgment cut off and whether any federal tax lien or governmental claim survives.
Primary sources for Arizona
Verify everything here against the governing statute and the state's tax authority. Links open the official government source.
State tax authority
Related reading
Tax Deed vs. Tax Lien Investing: What Every Investor Must Understand
Read the articleFree tools
Run the numbers and work the checklist
Open the investor toolsThis guide is educational information about Arizona tax-sale procedure, not legal or investment advice. Statutes are amended and county practice varies; confirm the current law and your county's specific sale terms with the primary sources above or a licensed attorney before bidding.