How Massachusetts Tax Deeds Work
Massachusetts is a tax deed state, meaning when property owners fail to pay their property taxes, the county auctions off the actual property to recover the unpaid taxes. This gives investors the opportunity to acquire real estate at potentially significant discounts.
Massachusetts Redemption Period
Even though Massachusetts sells tax deeds, there is a 6-month redemption period during which the former owner can reclaim the property by paying the purchase price plus 16% interest.
Calculating Your Massachusetts Tax Deed ROI
Use the calculator above to estimate your potential returns on Massachusetts tax deed investments. Key factors affecting your ROI include:
- Purchase price: The amount you pay at auction
- Interest rate: Massachusetts's statutory 16% rate
- Holding period: Time until redemption or property acquisition
- Property value: Potential profit if you acquire the property