How Arizona Tax Liens Work
Arizona is a tax lien state, meaning when property owners fail to pay their property taxes, the county sells tax lien certificates to investors rather than the property itself. As an investor in Arizona tax liens, you pay the delinquent taxes and earn 16% annual interest when the property owner redeems.
Arizona Redemption Period
Property owners in Arizona have 36 months to redeem their tax lien by paying the delinquent taxes plus 16% interest. If the owner doesn't redeem within this period, you may be able to foreclose and potentially acquire the property.
Calculating Your Arizona Tax Lien ROI
Use the calculator above to estimate your potential returns on Arizona tax lien investments. Key factors affecting your ROI include:
- Purchase price: The amount you pay at auction
- Interest rate: Arizona's statutory 16% rate
- Holding period: Time until redemption or property acquisition
- Property value: Potential profit if you acquire the property