Tyler v. Hennepin County
2023U.S. Supreme Court case holding that retaining surplus equity from a tax foreclosure is an unconstitutional taking; led to 2024 NJ legislative reforms.
NJ
New Jersey
Tax Deed
New Jersey tax lien auctions are conducted by individual municipalities to sell tax sale certificates on delinquent properties. Investors bid down the interest rate (capped at 18%) or bid a premium. The certificate holder must wait two years before initiating a judicial foreclosure to potentially obtain title, subject to new equity-protection laws.
| Upcoming auctions | 0 |
| Counties covered | 21 |
| Scored properties | 0 |
| Last updated | Apr 15, 2026 |
Quick facts
- Sale type
- Tax lien
- Redemption period
- 2 years (third-party)
- Sale frequency
- Annual (minimum)
- Interest rate
- Up to 18%
- Minimum bid
- Taxes + interest + costs
- Deed type
- Foreclosure judgment
- Bidder deposit
- Varies by municipality
Statutory framework
| Sale Type | Tax Lien |
| Redemption Period | The redemption period is generally two years from the date of the tax sale for third-party purchasers. If the municipality is the purchaser, it may institute an action to foreclose the right of redemption after six months from the date of sale. The right to redeem continues until it is barred by a final judgment of the Superior Court. |
| Penalty / Interest | New Jersey utilizes a bid-down interest system with a statutory maximum of 18% per annum. Bidders compete by bidding down the rate; if the rate reaches 0%, bidders compete by offering a premium. A year-end penalty of 6% may be assessed on total delinquencies exceeding $10,000 at the end of the municipal fiscal year. |
| Jurisdiction Type | Municipality |
| Jurisdiction Count | 564 |
| Typical Sale Month | Varies by municipality; no statewide typical month. |
| Assessor Portal | — |
| GIS Portal | — |
| Tax Portal | — |
Sale mechanics
Auctions are held at the municipal level, primarily online or in-person. Bidders register with the municipality or its vendor. The minimum bid is the total of delinquent taxes, interest, and costs. Winning bidders must pay the full amount immediately or by the end of the sale via certified funds.
Post-sale obligations
The tax sale certificate does not grant ownership or the right to trespass. The lienholder must provide notice of intention to foreclose at least 30 days before filing a complaint. The certificate holder has no right to enter or maintain the property until title is obtained through a judicial foreclosure action.
Quiet title cost estimator
Estimate attorney and court costs for clearing title after a New Jersey tax deed purchase.
Estimated cost$5,000
Timeline12 mo.
Notable counties
Key New Jersey counties for tax deed investors.
Hudson County
High density of urban properties and frequent tax sales.
Camden County
Significant volume of municipal tax sales.
Recent statutory changes
- P.L. 2024, c. 39 (Effective July 10, 2024) allows property owners to demand a judicial sale or online auction of their property to reclaim surplus equity before a final judgment of foreclosure is entered.
How to bid at a New Jersey tax deed auction
Step-by-step process for participating in New Jersey tax deed sales.
- 1
Research the catalog
Review the list of delinquent properties published by the municipality.
- 2
Verify property status
Conduct independent due diligence on the property's condition and title.
- 3
Register for auction
Complete the required registration with the municipality or its designated online vendor.
- 4
Submit bids
Participate in the auction by bidding down the interest rate or offering a premium.
- 5
Pay the balance
Remit the full payment for the winning bid to the tax collector immediately.
- 6
Record the certificate
Record the Tax Sale Certificate with the County Clerk within 90 days.
Applicable statutes
Primary statute sections governing tax deed sales in New Jersey.
N.J.S.A. 54:5-1 et seq.
The New Jersey Tax Sale Law, governing the entire tax sale and foreclosure process.
N.J.S.A. 54:5-54
Defines the right of redemption and who may redeem.
N.J.S.A. 54:5-86
Governs the timeline and process for initiating a foreclosure action.
Notable case law
Landmark court decisions affecting New Jersey tax deed investors.
Simon v. Cronecker
2007Landmark NJ Supreme Court case regarding the validity of tax sale certificate assignments and the bona fide purchaser rule.
Frequently asked questions
Common questions from New Jersey tax deed investors.
- The owner has two years to redeem the lien by paying the full amount plus interest and costs.
- You must file an action to foreclose the right of redemption in Superior Court to obtain title.
- Tax liens do not guarantee clear title; prior liens or environmental issues may persist.
- The owner may contest the foreclosure in court, which can delay or void the process.
- Municipalities hold annual auctions, often online, where bidders compete on interest rates or premiums.
- No, the tax sale certificate does not grant the right to enter or inspect the property.
- Costs vary significantly based on legal complexity and whether the action is contested.
How does New Jersey's redemption period work?
Do I need a quiet title action?
What title risks should I know?
What happens if the owner challenges the sale?
How are auctions conducted?
Can I inspect properties?
What is the cost of foreclosure?
Title Risk Flags
Environmental liability for industrial properties under the Spill Compensation and Control Act and potential title defects requiring thorough pre-foreclosure searches.
Data sourced from public state statutes, county recorder offices, and AuctionSift's proprietary county monitoring network. Updated weekly.