State Summary

Tax Collection Method: Liens and Deeds
Primary Bidding Type: Varies by county
Redemption Period: 3 years for tax liens; not applicable for tax deeds
Redemption Interest Rate/Flat Penalty: 12% simple interest per annum for tax liens; not applicable for tax deeds

The following information summarizes the life cycle, requirements, and administering of tax liens in the state of Alabama. Please read this information carefully. There are Alabama Revenue and Taxation laws that pertain to all counties in Alabama, such as due and delinquent dates for taxes, the redemption period, the redemption interest rate, and many others, but be aware that there are subtle differences between the counties as well. When the word "typical" is used in the FAQs below, it indicates that most counties use this procedure/follow this convention, but not all counties.

Is Alabama a tax lien or a tax deed state?
Technically, Alabama is both. However, they only hold public tax lien sales. Tax deeds in Alabama are sold "over-the-counter" by the State of Alabama. Typically, for these over-the-counter tax deeds, the redemption period on these properties has expired and they have been "struck off" to the State. In other words, the State of Alabama owns these properties, but interested investors may inquire about and purchase these properties from the State Land Commissioner.

What is the name of the county official whom typically collects property taxes in Alabama?
The Revenue Commissioner. Some counties use "Property Tax Commissioner".

When are property taxes due in the state of Alabama?
The annual property tax payment for all counties in Alabama is due October 1.

When do property taxes become delinquent in the state of Alabama?
The annual property tax payment for all counties in Alabama becomes delinquent beginning January 1 of the following year.

When does the typical Alabama county make the delinquent tax list available?
Typically, most Alabama counties publish a "tax sale list" in the local newspapers approximately a month before the scheduled tax lien sale. Some counties make a delinquent taxpayer list and/or database accessible to the general public before the tax sale advertisement in the local newspapers.

What is the name of the county official whom typically conducts tax lien sales in Alabama?
The Revenue Commissioner.

When does the typical Alabama county hold their annual tax lien sale?
The annual tax lien sale for most Alabama counties is held in May or June.

What are the registration requirements for the typical Alabama tax lien sale?
Generally, there are no extensive requirements or fees associated with tax lien sale registration. For many tax lien sales, prospective bidders register the day of the sale, just prior to the start of bidding.

What is the bidding type used at a typical Alabama tax lien sale?
Premium bidding at a public outcry auction.

What forms of payment are generally accepted at a typical Alabama tax lien sale?
Cash, money order, certified check, personal check (with a line of credit from drawing bank) are generally accepted at most sales.

What are the general payment terms for the typical tax lien certificate purchased at an Alabama tax lien sale?
The full amount of the winning bid is due the day of the sale.

What type of document does the purchaser receive?
A Certificate of Purchase. In Alabama, a Certificate of Purchase is synonymous with a tax lien certificate.

What is the maximum interest rate investors earn while they hold the tax lien certificate?
The state-mandated interest rate is 12% per annum, or 1% accrual per month.

What is the redemption period for tax lien certificates in Alabama?
3 years, starting the same day that the tax lien certificate is first offered for sale to the general public.

Are tax liens offered "over-the-counter" in Alabama?
Yes. In fact, tax deeds are also available "over-the-counter".

What is the name of the county official whom typically determines the value of properties on a yearly basis?
The Revenue Commissioner

Does the typical Alabama county feature a Geographic Information System (GIS) application on their Web site?
A lot of the county Web sites offer GIS applications. Some GIS applications require free registration, and some require the use of the Internet Explorer browser and the installation of free "plug-in" software. GIS applications can be very useful for tax lien and tax deed investors because most of them feature aerial photos (some with zooming options), and a lot of them are integrated with tax bills and assessor/appraisal records, which simplifies the task of researching properties online.

For more information on the life cycle, requirements, and administering of tax liens in the state of Alabama, refer to the pertinent state laws in the Code Of Alabama, including the following statutes:

Section 40-10-15
Section 40-10-20
Section 40-10-120
Section 40-10-121
Section 40-10-187

Alabama County Reference