How Iowa Tax Liens Work
Iowa 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 Iowa tax liens, you pay the delinquent taxes and earn 24% annual interest when the property owner redeems.
Iowa Redemption Period
Property owners in Iowa have 21 months to redeem their tax lien by paying the delinquent taxes plus 24% interest. If the owner doesn't redeem within this period, you may be able to foreclose and potentially acquire the property.
Calculating Your Iowa Tax Lien ROI
Use the calculator above to estimate your potential returns on Iowa tax lien investments. Key factors affecting your ROI include:
- Purchase price: The amount you pay at auction
- Interest rate: Iowa's statutory 24% rate
- Holding period: Time until redemption or property acquisition
- Property value: Potential profit if you acquire the property