Florida tax certificates and tax deeds: how long before you lose the house?
Short answer
In Florida, a tax deed can be applied for no sooner than 2 years after April 1 of the year a tax certificate was sold on your unpaid taxes, which is about two and a half years after the tax bill first came due. Until the tax deed is issued, you can usually redeem by paying the Tax Collector the certificate amount plus interest and costs.
- Property taxes are due November 1 and become delinquent April 1 of the next year (Fla. Stat. § 197.333).
- The Tax Collector must sell tax certificates on delinquent property by June 1 or the 60th day after delinquency, whichever is later (§ 197.402(3)).
- A certificate holder can apply for a tax deed after 2 years have passed since April 1 of the year the certificate was issued (§ 197.502(1)).
- You can redeem any time before the tax deed is issued, unless the winning bidder has already paid in full (§ 197.472(1)).
- On a homestead, the opening bid must include one-half of the assessed value, which is treated as surplus (§ 197.502(6)(c); § 197.582(2)).
What is a Florida tax certificate?
A tax certificate is a lien for your unpaid property taxes that the county Tax Collector sells to an investor. The investor pays your delinquent taxes, interest, costs and charges, and in return earns interest when you pay it back (Fla. Stat. § 197.432). You still own the house. Nobody can take it on a certificate alone.
Certificates are auctioned by interest rate. The bidder willing to accept the lowest rate, up to a maximum of 18% a year, wins (§ 197.432(6); § 197.172(2)). If no one bids, the certificate goes to the county at the maximum rate. A certificate on a homestead for less than $250 in delinquent taxes is not auctioned and goes straight to the county (§ 197.432(4)).
Investors are restricted in how they contact you. A certificate holder may not contact you to encourage or demand payment until 2 years after April 1 of the year the certificate was issued (§ 197.432(13)).
From unpaid taxes to tax deed sale: the timeline
| Stage | When | Source |
|---|---|---|
| Tax bill | Due November 1; early-payment discounts from 4% in November to 1% in February | § 197.333; FL DOR |
| Delinquent | April 1 of the next year (or 60 days after the bill is mailed, if later) | § 197.333 |
| Certificate sale | Advertised once a week for 3 weeks; held by June 1 or 60 days after delinquency, whichever is later | § 197.402(3) |
| Tax deed application | Any time after 2 years from April 1 of the year the certificate was issued | § 197.502(1) |
| Published notice | Once a week for 4 weeks; no sale until 30 days after the first notice | § 197.512 |
| Mailed and sheriff notice | At least 20 days before the sale | § 197.522 |
| Tax deed sale | Public auction by the Clerk; high bidder posts 5% or $200, whichever is greater | § 197.542 |
| Certificate expires | 7 years after issuance if no tax deed application or other proceeding | § 197.482 |
Those are the earliest dates the law allows. A certificate holder doesn't have to apply right at the 2-year mark, and some wait. The certificate only expires if no deed application has been filed within 7 years.
The 2-year rule for a tax deed application
Under Florida law, the holder of a tax certificate may file a tax deed application "at any time after 2 years have elapsed since April 1 of the year of issuance" and before the certificate is canceled (§ 197.502(1)). An investor who applies must also pay off every other outstanding certificate on the property, plus any delinquent and current taxes, and the costs of the sale (§ 197.502(2)).
When the county itself holds the certificate, it must apply for a tax deed on property valued at $5,000 or more (§ 197.502(3)).
Once the application reaches the Clerk of Court, the Clerk records a notice of tax deed application in the public records and advertises the sale (§ 197.502(5)). You will be sent a warning by certified mail at least 20 days before the sale, and the sheriff must also serve or post a notice at least 20 days before the sale (§ 197.522).
Redeeming through the Tax Collector
You can pay off, or "redeem," a tax certificate at any time after it is issued and before a tax deed is issued. The exception is if the winning bidder at the tax deed sale has already made full payment to the Clerk, including documentary stamps and recording fees (§ 197.472(1)).
To redeem, you pay the Tax Collector the face amount of the certificate plus interest, costs and charges. If the interest earned is less than 5% of the face amount, a mandatory minimum of 5% applies, except on certificates bid at 0% (§ 197.472(2)). Ask the Tax Collector for the exact amount. Once a tax deed sale is scheduled, the warning notice tells you to contact the Clerk of Court to make payment (§ 197.522).
Partial redemption is limited. You can redeem only part of a certificate if the part can be described legally and is backed by a sale contract or recorded deed (§ 197.472(4)).
The tax deed sale and surplus
The Clerk auctions the property to the highest bidder. The certificate holder's bid is the starting point: the amounts needed to redeem the certificates, the costs, and interest of 1.5% a month from the application through the month of sale (§ 197.542(1)). The high bidder must pay in full within 24 hours, excluding weekends and holidays (§ 197.542(2)).
If the property sells for more than the opening bid, the extra is surplus. The Clerk first pays government liens of record, then holds the balance for the people with an interest in the property, including mortgage holders and the former owner (§ 197.582(2)).
- Watch your mail. The Clerk mails a notice of surplus funds. You have 120 days from the date of that notice to file a written claim (§ 197.582(3)).
- Liens come first. Valid liens are paid before any money goes to the former owner.
- You don't need a middleman. The statute provides the claim form with the mailed notice.
Homestead considerations
Florida gives homesteads extra protection at a tax deed sale. If the property is assessed as homestead on the latest tax roll, the opening bid must include one-half of the latest assessed value of the homestead (§ 197.502(6)(c)). That amount is treated as surplus and distributed under the surplus rules (§ 197.582(2)(a)).
In practice, that raises the price any buyer must pay and creates money that can flow back to lienholders and then to you. Homestead property with less than $250 in delinquent taxes also can't have its certificate auctioned to investors (§ 197.432(4)).
Selling before the tax deed sale
You own the home until a tax deed is issued, so you can usually sell it first. The title company pays the Tax Collector to redeem the certificates at closing, and your remaining equity comes to you instead of through a surplus claim.
- Get a redemption amount from the Tax Collector, and a mortgage payoff if you have a loan.
- Tell the buyer the sale date so closing happens before it.
- Close through a title company. Never sign a deed to anyone before closing.
Selling is one option among several. You can also redeem, ask the Tax Collector about your options, or talk to a HUD-approved housing counselor. If a sale makes sense, we buy houses across Florida, including Jacksonville, Orlando, Tampa and Lakeland, and we can give you a written cash offer with no obligation.
Frequently asked questions
How long can property taxes go unpaid in Florida before you lose your house?
Taxes become delinquent April 1, and a tax certificate is sold by about June 1. The holder can apply for a tax deed after 2 years from April 1 of the year the certificate was issued, so the earliest tax deed sale comes about two and a half years after the taxes were first due. You can redeem until the tax deed is issued.
Can I pay off a tax certificate in Florida?
Yes. You redeem it through the county Tax Collector by paying the face amount plus interest, costs and charges. A minimum of 5% interest applies unless the certificate was bid at 0% (Fla. Stat. 197.472).
What interest rate do Florida tax certificates earn?
The maximum is 18% a year. Bidders compete by accepting lower rates, and the lowest bid wins (Fla. Stat. 197.172 and 197.432).
Do Florida tax certificates expire?
Yes. A certificate becomes void 7 years after it was issued if no tax deed application or other legal proceeding has been filed (Fla. Stat. 197.482).
What happens to my homestead at a Florida tax deed sale?
The opening bid must include one-half of the homestead's latest assessed value. That amount is treated as surplus and goes first to government liens, then to lienholders and the former owner who file timely claims.
How do I claim surplus from a Florida tax deed sale?
The Clerk mails a notice of surplus funds with a claim form. File your written claim within 120 days of the notice date. Liens are paid before the former owner.
Sources
- Florida Statutes, chapter 197: § 197.333, § 197.172, § 197.402, § 197.432, § 197.472, § 197.482
- Florida Statutes, chapter 197 (tax deeds): § 197.502, § 197.512, § 197.522, § 197.542, § 197.582
- Florida Department of Revenue, Property tax information for taxpayers
- U.S. Department of Housing and Urban Development, Find a housing counselor
This is general information, not legal or tax advice. County procedures, fees and sale schedules vary, so confirm amounts and dates with your county Tax Collector and Clerk of Court. For advice on your situation, speak with a Florida attorney.