How do I start tax sale investing in Alabama?

Learn the system first: Alabama sells liens + tax deeds (hybrid) under Code of Alabama, Title 40, Chapter 10 — Article 1 et seq. sale of land (§ 40-10-1 et seq.) and §§ 40-10-180 to 40-10-200 sale of tax liens. Register with the county or its auction platform before the sale, post any required deposit, research each parcel in the property appraiser and clerk records, and set your max number before bidding.

Alabama Tax Sale Investing Guide — Two ways to play: liens and deeds

Investing guides / Alabama

Alabama tax sale investing: two ways to play: liens and deeds

Quick answerAlabama sells liens + tax deeds (hybrid) for unpaid property taxes. Lien buyers can earn Sale-of-lien counties: up to 12% per year, bid down in 1% increments to 0% (§§ 40-10-180 to 40-10-200). Sale-of-land counties: redemption interest is 8% per year for sales on or after January 1, 2020 (Ala. Admin. Code r. 810-4-6-.02, applying § 40-10-122; 12% before that change). Redemption: 3-year statutory (administrative) redemption period from the date of sale for sale-of-land parcels, after which the purchaser may demand a tax deed; additional judicial redemption can apply if the purchaser has not taken possession. Sale-of-lien holders may foreclose judicially after 4 years and within 10 years (as amended by Act 2024-261/324 legislation), with redemption continuing until foreclosure is completed Sales: Annual spring sales, varying by county — many lien-auction counties sell on the first Monday in May; sale-of-land counties set their own spring dates Governing law: Code of Alabama, Title 40, Chapter 10 — Article 1 et seq. sale of land (§ 40-10-1 et seq.) and §§ 40-10-180 to 40-10-200 sale of tax liens.

How it works in Alabama

Alabama runs both systems — tax lien certificates for yield, and tax deed auctions for property. Most investors pick one lane per county and master its calendar.

Interest / penalty: Sale-of-lien counties: up to 12% per year, bid down in 1% increments to 0% (§§ 40-10-180 to 40-10-200). Sale-of-land counties: redemption interest is 8% per year for sales on or after January 1, 2020 (Ala. Admin. Code r. 810-4-6-.02, applying § 40-10-122; 12% before that change)

Redemption: 3-year statutory (administrative) redemption period from the date of sale for sale-of-land parcels, after which the purchaser may demand a tax deed; additional judicial redemption can apply if the purchaser has not taken possession. Sale-of-lien holders may foreclose judicially after 4 years and within 10 years (as amended by Act 2024-261/324 legislation), with redemption continuing until foreclosure is completed

When sales happen: Annual spring sales, varying by county — many lien-auction counties sell on the first Monday in May; sale-of-land counties set their own spring dates

Where sales run: GovEase (tax lien auction counties), mostly in-person (sale-of-land counties)

Governing law: Code of Alabama, Title 40, Chapter 10 — Article 1 et seq. sale of land (§ 40-10-1 et seq.) and §§ 40-10-180 to 40-10-200 sale of tax liens

The investor's edge

Your edge is calendar mastery: certificate season and deed sales run on different clocks here, and the investors who win are the ones who never miss a list posting.

County opt-in hybrid: each county chooses the traditional sale-of-land system (premium/highest bid, certificate exchangeable for a deed after 3 years, immediate right to possession subject to redemption) or the 2018 sale-of-lien system (bid-down interest, no possession, no overbid). Always confirm which system the target county uses before bidding.

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Full legal reference: Alabama tax sale laws. Verified 2026-10-30 against the sources on that page. Educational only, not investment advice.