How to Buy Your First Tax Lien: A 5-Step Guide to Over-the-Counter Investing

Updated Oct 8, 2026

Once you know the basics, buying a first tax lien certificate is more approachable than it sounds, especially if you start with over-the-counter (OTC) liens. These are liens that were offered at the county's sale and did not sell. In many places you can buy them directly from the county, without competing in an auction.

Here is a straightforward five-step path.

Step 1: Choose your market

You do not have to invest where you live. Many beginners start in a state with clear rules and online access.

Florida is a common first choice: certificates carry a maximum rate of 18% per year, many counties publish lists of unsold, county-held certificates, and the process after non-payment (a tax deed application) runs through county offices rather than a lawsuit. Read our Florida tax lien guide before you start.

Action: On LienDeed, open a few county pages in your target state (for example Polk County, FL) and compare them. Population trends and sale history are a good first filter.

Step 2: Get the over-the-counter list

Each county decides whether, when and how it sells leftover liens. Some publish an online list; others ask you to contact the tax collector or treasurer.

Action: Check the county's OTC availability and rules on its LienDeed page, then confirm on the official county website. Note the rate offered, the minimum purchase, and how payment works.

Step 3: Do quick but real due diligence

For a first lien, you are mainly checking that the parcel is worth something and that nothing obvious is wrong.

• Is the parcel usable? Look at satellite imagery. You want to see a structure or buildable land, not a drainage strip, a landlocked sliver or protected wetland.
• How big is the lien compared with the property's value? Compare the lien's face value with the assessed value. A lien that is a small fraction of the value (for example under 5%) is better secured than one that is close to it.
• Any red flags? Signs of fire damage, collapse or long abandonment, or other government liens on the parcel, are reasons to slow down.

Action: Shortlist three to five liens and work through these checks for each. Our due diligence checklist goes deeper.

Step 4: Buy from the county

Purchases are made through the county (or its official sale vendor), not through LienDeed. Requirements vary: some counties take online payments, others require registration, a W-9, a deposit or a wire.

Action: Follow the official county link from the parcel page, complete the county's process, and keep every receipt and certificate number.

Step 5: Track it

After the purchase, the county handles redemption: the owner pays the county, and the county pays you. Your job is to track dates.

Action: Record the certificate in your portfolio with the purchase date, amount, rate and the key deadlines (for example, when you may apply for a deed and when the certificate expires). Missing a statutory deadline can cost you the lien.

A first lien is a learning purchase. Keep it small, document everything, and read the county's rules end to end. For guided practice, try LienDeed Academy.

This article is general information, not financial or legal advice. Tax-sale rules change; always confirm with the county.