How Washington D.C. Tax Liens Work
Washington D.C. 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 Washington D.C. tax liens, you pay the delinquent taxes and earn 18% annual interest when the property owner redeems.
Washington D.C. Redemption Period
Property owners in Washington D.C. have 6 months to redeem their tax lien by paying the delinquent taxes plus 18% interest. If the owner doesn't redeem within this period, you may be able to foreclose and potentially acquire the property.
Calculating Your Washington D.C. Tax Lien ROI
Use the calculator above to estimate your potential returns on Washington D.C. tax lien investments. Key factors affecting your ROI include:
- Purchase price: The amount you pay at auction
- Interest rate: Washington D.C.'s statutory 18% rate
- Holding period: Time until redemption or property acquisition
- Property value: Potential profit if you acquire the property