- Does New Jersey sell tax liens or tax deeds?
- New Jersey sells tax liens. The municipal tax collector sells a tax sale certificate on each parcel with unpaid taxes or municipal charges. There is no tax deed auction; a holder who is not redeemed forecloses the right of redemption in Superior Court.
- Who runs the tax sale, the county or the town?
- The town. Each of New Jersey's 564 municipalities holds its own sale through its tax collector, on its own date. Counties do not run tax sales; the county clerk records certificates and the county sheriff handles only foreclosure sales that an owner demands.
- What interest rate do New Jersey tax sale certificates pay?
- Up to 18 percent a year. Bidders compete by bidding the rate down, and once a bid falls below 1 percent they may bid a cash premium instead. The premium earns no interest and is returned only if the parcel is redeemed, or a sheriff's sale is scheduled, within five years. On redemption the holder also receives a one-time penalty of 2, 4 or 6 percent of the certificate amount for certificates over $200, $5,000 and $10,000.
- How long is the redemption period in New Jersey?
- There is no fixed end date. The owner may redeem until a foreclosure judgment cuts the right off. A private certificate holder may file to foreclose two years after the sale; a municipality or its assignee may file after six months, and abandoned property may be foreclosed at any time.
- When are New Jersey tax sales held?
- Each municipality sets its own date, so there is no statewide month. A standard sale is held in the fiscal year after taxes go into arrears, and a municipality may hold an accelerated sale in the last month of the fiscal year. The sale is advertised in a local newspaper for four weeks and posted in five public places in the town.
- What happens to surplus equity after a New Jersey tax foreclosure?
- Since P.L.2024, c.39, the owner or heirs may demand before final judgment that the foreclosure go to a sheriff's sale or Internet auction. The sheriff deposits any surplus, after paying the holder, with the Superior Court clerk, and the owner claims it by motion. If no sale is demanded, the holder may take title and the owner has no claim for equity.
- Can you buy New Jersey tax sale certificates outside the annual sale?
- Sometimes. Parcels with no bidder are struck off to the municipality at 18 percent, and the governing body may later sell those certificates by assignment or at a separate public sale. That is at the town's discretion, and buyers at such a public sale must foreclose within two years of confirmation.
Ready to act on these rules? Follow how to buy New Jersey tax liens for the registration, bidding, and post-sale sequence in order.
Verified Sep 27, 2026 against New Jersey statutes.
Tax Sale Atlas publishes educational information about public tax sale processes. This is not legal, financial, or investment advice. Rules, dates, and fees change; confirm with the county office before you bid.