How Colorado Tax Liens Work
Colorado is a tax lien state operating under C.R.S. § 39-11-101 et seq. When property taxes go unpaid, the county treasurer auctions a tax lien certificate. Investors pay the delinquent taxes and earn interest while the owner has up to 3 years to redeem. Colorado's interest rate is variable — set annually by the state based on the federal discount rate plus 9% — and has historically ranged from about 10% to 15%.
Bid-Down Interest
Colorado uses a bid-down interest rate format starting at the statutory maximum (currently ~15%). Investors compete by accepting lower rates. In Denver, El Paso, and Arapahoe counties, institutional buyers bid rates on desirable residential parcels down significantly. In rural and mountain counties, rates frequently hold near the statutory maximum with minimal competition.
Federal Discount Rate + 9%
Colorado's rate is not a fixed statutory maximum — it is recalculated annually as the federal discount rate plus 9 percentage points (C.R.S. § 39-12-103). This means the rate changes year to year as the federal rate moves. Always verify the current year's rate with the Colorado Division of Property Taxation before the sale season. The rate applies to your certificate from the date of purchase.
3-Year Window
Colorado property owners have 3 years from the date of the tax sale to redeem (C.R.S. § 39-12-103). This is one of the longer redemption periods among lien states — longer than Indiana (1 year), Iowa (21 months), or Florida (2 years). Interest accrues monthly during the full redemption period. After 3 years unredeemed, the certificate holder may apply for a treasurer's deed.
Application — No Court Required
Unlike Maryland or New Jersey (which require circuit court foreclosure), Colorado certificate holders apply to the county treasurer for a deed after the 3-year period. The treasurer notifies all interested parties and, if no redemption occurs during the notice period, issues a treasurer's deed. No court action required for straightforward cases — though title issues can still require legal assistance.
The rate changes annually — always verify before the sale: Because the rate is tied to the federal discount rate, what you earned last year may differ from this year. Check the Colorado Division of Property Taxation website (dola.colorado.gov/dpt) each fall for the current year's rate before registering for any county sale. The rate is set uniformly statewide — all 64 counties use the same rate in a given year.
October–November sale season: Most Colorado counties hold their annual tax lien sales in October or November. Each county sets its own exact date. There is no centralized Colorado platform — each county treasurer runs their own sale, either in person at the courthouse or increasingly online. Start contacting target county treasurers in August to get the current year's date, registration deadline, and deposit requirements.
Subsequent taxes and the 3-year hold: During the 3-year redemption period, you may pay subsequent year delinquent taxes on the same property and add them to your certificate balance — earning the same annual rate on those additional amounts. On a 3-year hold, paying subsequent taxes can significantly increase your total return. Track each property's annual tax status and decide whether to pay subsequent taxes based on your assessment of the owner's likelihood to redeem.
Treasurer's deed vs. court action: Colorado's treasurer's deed process is simpler than most states that require court foreclosure. After the 3-year period, you file an application with the county treasurer, who sends certified notice to all interested parties (owner, mortgage holders, lien holders). If no one redeems during the statutory notice period, the treasurer issues the deed. For properties with clean title histories, this is relatively straightforward. For properties with complex ownership, estates, or IRS liens, consulting a Colorado real estate attorney before applying for the deed is advisable.
Denver metro counties (Denver, Arapahoe, Jefferson, Adams, Douglas) are competitive markets where institutional buyers attend every sale and bid rates down aggressively on anything with visible equity. Individual investors competing in these counties for conventional residential parcels will typically achieve rates well below the statutory maximum. The returns can still be acceptable on the right parcels, but the research burden is high and competition is real.
Eastern Plains counties (Yuma, Kit Carson, Cheyenne, Kiowa, Prowers, Baca) offer near-maximum rates with virtually no institutional presence. Liens are primarily on agricultural land — farmland, rangeland, and rural residential. These counties have very low competition but require comfort with rural Colorado property markets and agricultural land values. For investors who understand the collateral, they represent some of the most straightforward lien investing available anywhere.
Mountain and resort counties (Pitkin/Aspen, Summit/Breckenridge, Eagle/Vail, San Miguel/Telluride) are their own category. Property values are very high, liens are small relative to value (very well secured), and competition is low because the parcel volumes are small. The challenge is the small pool — some mountain counties have very few liens in a given year. For investors who know these markets or live nearby, they can be excellent.
The Colorado Tax Lien Process
From delinquency to certificate purchase to treasurer's deed — the full Colorado cycle.
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1Taxes go delinquent January 1 — Colorado property taxes are due in two installments: February 28 and June 15. Taxes unpaid after June 15 become delinquent for the full year. The county treasurer compiles the delinquent list over the summer and schedules the annual sale for fall.
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2Publication and registration — The county treasurer publishes the delinquent list in a local newspaper for three consecutive weeks before the sale. Most Colorado counties require advance registration and a deposit — contact the treasurer in August or September to confirm the current year's requirements. Some counties now accept online registration; others require in-person or mail-in forms.
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3October–November auction — bid-down format — The sale is conducted by the county treasurer, starting at the current year's statutory maximum rate. Investors bid the rate down. The lowest bidder wins. Payment is due at or shortly after the auction — the treasurer specifies the deadline. You receive a tax lien certificate confirming your position, the rate, and the sale date.
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43-year redemption period — The property owner (and any interested parties) have 3 years from the sale date to redeem. To redeem, they pay the certificate amount plus all accrued interest at your bid rate. You may pay subsequent year delinquent taxes during this period and add them to your certificate balance at the same rate.
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5Apply for treasurer's deed — After 3 years unredeemed, file a deed application with the county treasurer (C.R.S. § 39-11-128). The treasurer sends certified notice to all interested parties with a statutory redemption window. If no one redeems during this period, the treasurer issues a treasurer's deed in your name. No court action required in most cases.
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6Obtain title insurance and sell — A treasurer's deed is generally considered marketable title in Colorado, but title insurance companies may still require a quiet title action for very old or complex title histories. For most residential parcels, the treasurer's deed is sufficient to sell or refinance. Consult a Colorado real estate attorney if you encounter title insurance resistance.
All 64 Colorado Counties
Search, filter, and sort. Click any row to expand details and official links. Counties with dedicated pages are linked directly.
| County | County Seat | Population | Sale Month | Region | Competition |
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