New Jersey Tax Liens

 Sale Type:  Tax Liens
 Interest Rate:  18% per annum
 Bid Method:  Bid down the interest or premium
 Redemption Period:  2 Years
 Sale Date(s):  Varies by county
 State Statute(s):  Title 54, Subtitle 2 CH 5
 Over-the-Counter:  No
 State Website:  nj.gov

New Jersey State Overview

New Jersey law requires all 566 municipalities to hold at least one tax sale per year if the municipality has delinquent property taxes and/or municipal charges. You can obtain information on upcoming tax sales by contacting the tax collector in the municipality in question, or from the web site of the Tax Collectors & Treasurers Association of New Jersey: www.tctanj.org/taxsale.html.

In New Jersey, county treasurer’s and tax collector’s sell tax lien certificates to the winning bidder at the delinquent property tax sale.

  • Tax Sale Type: Tax Lien Certificates (Sec. 54:5-46).
  • Contact: Tax Collector. (Sec. 54:5-19).
  • Interest Rate and/or Penalty Rate: 18% per annum and 4% – 6% penalty. (Sec. 54:5-61 and (Sec. 54:5-32 ).
  • Bid Procedure: Bid down interest rate or premium bid / highest bid. (Sec. 54:5-32).
  • Redemption Period: Two (2) years. (Sec. 54:5-86).
  • Law: New Jersey Revised Statutes, Title 54, Subtitle 2, Chapter 5, “Tax Sale Law.”

Amount to Redeem: According to (Sec. 54:5-32) the ‘sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest, but in no case in excess of 18% per annum. If at the sale a person shall offer to purchase subject to redemption at a rate of interest less than 1%, he may, in lieu of any rate of interest to redeem, offer a premium over and above the amount of taxes, assessments or other charges, as in this chapter specified, due the municipality, and the property shall be struck off and sold to the bidder who offers to pay the amount of such taxes, assessments or charges, plus the highest amount of premium…’.

In addition, according to (Sec. 54:5-32) When the tax title certificate amount shall exceed the sum of $5,000, such additional sum shall be equal to 4% of such amount paid; and when the tax title certificate amount exceeds $10,000, such additional sum shall be equal to 6% of such amount paid. This section shall also apply to all existing tax title certificates held by municipalities on the effective date of P.L.1991, c.75.