State by State Updates: How Property Tax Lien & Deed Law Is Evolving in 2025
Property tax lien and deed investing has long been influenced by the nuances of state-level law. While the core concept is the same investors step in where property taxes go unpaid and have a legal path to either collect interest or acquire property, the legal landscape across the United States is far from uniform. In 2025, a wave of legislative reviews and reforms is reshaping the way counties manage tax enforcement, redemption periods, investor rights, and homeowner protections.
At Core Tax Deeds, we believe it is essential for investors to stay informed, not just about Texas (our home state), but about the broader trends that shape public policy and investor opportunity. Here’s a look at what’s happening in several key states, and what it may signal for the future of tax deed investing.
Texas: The Gold Standard, Under Review
Texas remains one of the most favorable states for tax deed investors. With monthly auctions across all 254 counties and strong statutory returns (25% to 50% penalties on redemptions), Texas continues to offer some of the most lucrative opportunities.
However, 2025 has brought increasing public scrutiny to the process. State legislators are considering bills that would:
- Shorten redemption periods for certain vacant or commercial properties
- Require more detailed notification to property owners
- Introduce caps on investor bidding premiums
Core Tax Deeds is actively tracking these developments through our NTLA membership to ensure our investors remain informed and compliant.
Florida: Tightening Procedures, Improving Transparency
Florida operates under a tax lien system with two-year redemption timelines. In 2025, lawmakers are looking to enhance transparency by:
- Standardizing digital auctions across counties
- Requiring post-sale disclosures to property owners
- Increasing reporting requirements for lien buyers
The goal is to strike a balance between investor access and homeowner protections. While this may slow the process slightly, it could reduce legal disputes and reputational risks.
California: Advocacy Battles Ongoing
California’s tax default system remains under pressure from housing advocates who argue that current laws disproportionately impact vulnerable homeowners. In 2025, several counties have paused tax sales pending legislative review. Proposals under discussion include:
- Extended grace periods for redemption
- Mandatory hardship evaluations before foreclosure
- Public ownership or land bank options for unsold properties
These changes, if passed, could limit opportunities for investors in major metros. However, rural and suburban counties may continue under current frameworks.
Georgia: Speeding Up and Adding Automation
In 2025, Georgia is piloting an initiative to automate its judicial tax foreclosure process. Key proposals include:
- Faster processing of tax deed confirmations
- Integration with state court systems
- Tiered redemption periods based on property type
This modernization could enhance investor certainty and reduce carrying costs, making Georgia a more attractive market for those comfortable navigating court-based systems.
Illinois: Investor Caps and Community Oversight
Illinois has introduced proposals to limit the number of liens a single investor can purchase per year. This comes amid growing concern about bulk purchasing and property aggregation by out-of-state investors.
Other proposed reforms include:
- Required community reinvestment plans
- Additional documentation for assignment of lien certificates
These changes may favor smaller investors and encourage more local participation.
National Trends: What to Watch
Across the country, three major themes are emerging:
- Technology Standardization: Counties are adopting online auction platforms, streamlining access but also increasing competition.
- Homeowner Protections: New laws aim to provide more time, notice, and options for redemption, especially for seniors and low income property owners.
- Investor Compliance: States are introducing more licensing, disclosures, and documentation to ensure ethical participation.
For investors, the message is clear: tax lien and deed investing is no longer a hidden niche. It is a growing, scrutinized, and increasingly regulated sector of real estate. Those who succeed will be those who stay informed, act ethically, and partner with fund managers who prioritize transparency and legal compliance.
How Core Tax Deeds Responds
As a Reg CF issuer, Core Tax Deeds is committed to full compliance and proactive education. Through our NTLA membership, we monitor national and state-level legislative activity and adapt our strategy accordingly. This includes:
- Adjusting holding periods and acquisition timing
- Conducting additional title diligence in changing jurisdictions
- Maintaining open lines of communication with county tax offices
Our investors receive regular updates on legal and policy trends, ensuring they can make informed decisions aligned with their risk tolerance and goals.
Final Thought
2025 is shaping up to be a pivotal year in the evolution of tax lien and deed law. Whether these changes ultimately make the space more competitive or more cautious, one thing is certain: education, ethics, and strategic positioning will matter more than ever.
To stay updated or to learn more about how we invest in compliance with national best practices, visit https://coretaxdeeds.com or explore our offering at https://invest.coretaxdeeds.com.
Disclaimer: This Reg CF offering is made pursuant to an exemption from registration with the SEC. Investments in private placements are speculative, illiquid, and involve a high degree of risk, including the possible loss of your entire investment. Past performance is not indicative of future results. Investors should consult their financial advisor before making investment decisions.