Lien, then deed · Alabama

Alabama Tax Deed & Tax Lien Sales 2026

County listings for Alabama are on the way. The rules below are ready now, so you can plan before the first sale is published.

How Alabama sales work

Ala. Code Title 40, Chapter 10
Sale type
Hybrid (county elects tax lien auction or traditional tax sale)
Redemption period
3 years from sale (both lien auctions and traditional tax sales)
Interest or penalty
12% per year (bid-down at tax lien auctions)
Sale frequency
Annual, typically April-June, varies by county
Bidding method
Bid-down interest (lien auction counties) or premium bid over taxes due (traditional tax sale counties)
Where sales run
GovEase · In-person at county courthouse · Alabama Department of Revenue (state-held land)

Summary from public statutes. Rules change and counties differ. Verify with the county before bidding.

What catches investors off guard

  1. Counties run one of two very different systems, so the rules that apply depend on which election the county has made.
  2. Redemption runs three years and the redeeming owner can dispute the value of improvements and expenses you claim.
  3. Traditional tax sale certificates carry weak title until you complete a quiet title action after the redemption period.
  4. Possession of occupied property requires an ejectment action, and the occupant may still have redemption rights.

How tax sales work in Alabama

Alabama runs two systems side by side. Under the traditional tax sale, the county probate court orders delinquent parcels sold and the tax collector auctions them to the highest bidder. The winner pays the taxes, costs and any overbid and receives a certificate of purchase, with a tax deed following after the redemption period. Since 2018 the legislature has let counties opt instead into tax lien auctions, where the county sells a lien on the parcel rather than the parcel itself. Bidders compete by lowering the interest rate they will accept, starting at 12 percent. A growing list of counties has switched to the lien model; many rural counties still hold traditional sales. Parcels that draw no bids are struck off to the state, and the Department of Revenue sells state-held land year-round by application.

Redemption and interest

In both systems the owner has three years from the sale date to redeem. For a traditional sale the redeemer pays the purchase price, subsequent taxes and 12 percent interest, plus the value of preservation improvements in some cases. For a tax lien the redeemer pays the lien amount and the interest rate set at auction, which can be well below 12 percent in competitive counties. Lien holders may pay later years’ taxes to keep their position, and after three years may file a judicial action to foreclose the right of redemption and obtain a deed. Certificate holders from traditional sales generally need a quiet title action before a title company will insure.

When and where sales happen

Sales cluster in the spring, with most counties auctioning between April and June. Lien auction counties usually run online through a contracted platform; traditional sales are typically held in person at the courthouse. Confirm each county’s list and schedule before registering.

What to check before you bid

Confirm which system the county uses this year, since the economics differ sharply. Pull the assessor record and the recorded deed to check for mortgages, municipal liens and code enforcement claims that may survive or complicate possession. Check whether the property is occupied; an occupant in Alabama can only be removed through ejectment and may raise redemption defenses. Verify the tax years included in the sale so you know what subsequent taxes you will owe. Price in three years of holding time and legal costs.

How AuctionScouts helps here

AuctionScouts aggregates published county tax sale and lien lists across Alabama into one searchable view, scores each parcel from 0 to 100 on our baseline model, and flags recorded liens likely to survive the sale. The auction calendar tracks county sale dates so you can plan the spring season county by county.

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