How Indiana Tax Liens Work
Indiana is a tax lien state operating under Indiana Code § 6-1.1-24 and § 6-1.1-25. When property taxes go delinquent, the county auditor auctions a tax lien certificate. Investors pay the delinquent taxes and earn a penalty-based return when the owner redeems. If unredeemed after 1 year, the certificate holder can pursue direct foreclosure — no second public auction required.
Tiered: 10% Then 5%
Indiana uses a penalty-based return, not an interest rate. The penalty is 10% of the minimum bid for the first year, then 5% for each additional 6-month period of non-redemption. This is a flat penalty on the amount paid — not an annualized rate. On a $5,000 lien, you earn $500 if redeemed in year one regardless of whether redemption happens in month 1 or month 12.
1-Year Window
Indiana's 1-year redemption period is one of the shortest among lien states. The clock starts at the date of sale. Owners must pay the certificate amount plus the applicable penalty to redeem. After 1 year without redemption, the certificate holder may begin foreclosure proceedings directly. This short window requires investors to track deadlines carefully.
Direct Foreclosure — No Re-Auction
Unlike Florida (which requires a separate tax deed auction) or Georgia (which requires quiet title), Indiana certificate holders foreclose directly in circuit or superior court after the redemption period. You file a petition to foreclose the right of redemption. If successful, the court issues a judgment and you receive a deed — no competing bidders, no second auction. This is a significant structural advantage.
Auditor Runs Every Sale
Indiana tax sales are conducted by each county's auditor, not a tax collector or treasurer. Sales are typically held in August, September, or October — exact dates vary by county and are set annually. There is no statewide platform — each county runs its own auction, often using SRI Tax Sale Services (the dominant Indiana vendor) or conducting sales in-person.
SRI Tax Sale Services dominates Indiana: The majority of Indiana counties use SRI Tax Sale Services (sriservices.com) to conduct and list their tax sales. SRI provides an online portal where you can register, view upcoming sales, and in many counties bid online. Registration and a refundable deposit are required before bidding. Check SRI's calendar for your target county's sale date — it's the most reliable source for Indiana auction schedules.
The surplus bid rule: Indiana has a notable investor-protection rule — if you bid more than the minimum bid at auction, the excess (surplus) is tracked. If the owner redeems, they must also pay back your surplus bid amount plus penalty. This means bidding above the minimum at a competitive Indiana auction does not necessarily mean losing the surplus — it's factored into the redemption calculation.
Notice to owners before foreclosure: Before you can foreclose your right of redemption, Indiana requires you to send a certified letter notice to the property owner at least 135 days before the 1-year redemption deadline. Miss this window and you lose the right to foreclose until the next statutory period. Track this date — it is easy to miss and has significant consequences.
Tax certificates vs. tax deeds: Indiana calls its instrument a tax sale certificate (not a deed). You hold a lien position, not ownership, during the redemption period. If you foreclose and receive a judgment, the court then issues a commissioner's deed transferring ownership. Title insurance on a commissioner's deed may still require a quiet title action depending on the history of the parcel — consult a local attorney before foreclosing.
The Indiana Tax Lien Process
From delinquency to certificate purchase to foreclosure — the full Indiana cycle.
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1Taxes go delinquent May 11 — Indiana property taxes are due in two installments: May 10 and November 10. Taxes unpaid after May 10 become delinquent and begin accruing penalties. The county auditor compiles the delinquent list over the following months and sets a sale date, typically in August–October of the same year.
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2Publication and registration — The county auditor or SRI publishes the delinquent list. Investors register with the county auditor or SRI portal and submit a refundable deposit (amount varies by county — often $500–$2,000). Registration deadlines are typically 10–15 days before the sale. Do not miss this window.
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3Tax sale auction — Auctions may be in-person at the courthouse or online through SRI. The minimum bid is the delinquent taxes plus costs. Most Indiana counties are bid-up from the minimum — highest bidder wins. Payment is due within 48 hours of winning. You receive a tax sale certificate confirming your lien position.
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4Send the 135-day notice — At least 135 days before the 1-year redemption deadline, you must send certified written notice to the property owner (and any mortgage holders) of your intent to foreclose. This is a mandatory statutory requirement. Failure to send proper notice forfeits your foreclosure right for that period. Mark this date the day you purchase the certificate.
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51-year redemption period expires — If the owner redeems during the year, they pay the certificate amount plus the 10% penalty (plus 5% per additional 6-month period if applicable), and you receive your full return. If the owner does not redeem, you may file a petition to foreclose the right of redemption in the county circuit or superior court after the 1-year period.
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6Foreclosure and commissioner's deed — File a petition in circuit or superior court. Serve all interested parties. If uncontested (which is typical), the court issues a judgment foreclosing the redemption right and orders issuance of a commissioner's deed. You now hold title. Consult a local Indiana attorney — quiet title may still be recommended before selling or financing.
All 92 Indiana Counties
Search, filter, and sort. Click any row to expand auction details and official links. Counties with dedicated pages are linked directly.
| County | County Seat | Population | Yr 1 Penalty | Typical Sale Month | Region | Competition |
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