How to buy tax-sale property in New Jersey (2026)

1. 1.Watch the municipal tax collector's public notice of the time and place of sale, which describes each parcel, the total amount due and the costs of sale (54:5-25); the collector prepares the list of lands subject to sale (54:5-21)
2. 2.Attend the tax sale held by the collector or the officer charged with that duty, who enforces the lien by selling the property, either as a standard tax sale or an accelerated tax sale (54:5-19)
3. 3.Where the municipality conducts the sale through an electronic municipal tax lien service, register with that service and place any required deposit before the auction (54:5-19.1)
4. 4.Bid down the interest rate: the property is sold in fee to the person who will purchase it subject to redemption at the lowest rate of interest, but never above 18 percent per annum (54:5-32)
5. 5.If the rate is bid below 1 percent or to no interest, bid a premium instead: the property is struck off to the bidder who offers to pay the amount of the taxes, assessments or other charges plus the highest amount of premium (54:5-32)
6. 6.Pay for the sale before the conclusion of the sale, or the property is resold (54:5-33)
7. 7.Any premium payment is held by the collector and returned to the purchaser if and when redemption is made (54:5-33)
8. 8.Pay the officer's fee for the municipality's costs of holding the sale if it was unpaid before the sale, because it then forms part of the tax lien (54:5-38)
9. 9.Receive a certificate of sale under the officer's hand and seal, setting out the date of sale, the amount paid, the parcel, the rate of redemption and when the right to redeem expires (54:5-46)
10. 10.Record the certificate of sale with the county clerk or register of deeds as a mortgage of land (54:5-50)

RegistrationSigning up as a bidder before the sale. Counties set the deadlines and paperwork, which may include an application, identification, and a no-delinquent-taxes statement. See the full glossary for more terms.

Required: UnknownUnknown

Not verified from a source yet.

DepositMoney you must post before or at the sale, often a flat amount or a percentage of your bid. It is usually applied to the purchase price if you win and is often non-refundable if you fail to pay. See the full glossary for more terms.

Required: UnknownUnknown

Not verified from a source yet.

FormsPaperwork a county may collect before you can bid, such as a bidder ID card or a W-9 for tax reporting. See the full glossary for more terms.

Bidder ID card: UnknownW-9: Unknown

EligibilityRules about who may bid. Some counties restrict non-residents or bar anyone who owes delinquent taxes from participating. See the full glossary for more terms.

Residency required: UnknownNo delinquent taxes: Unknown

PaymentHow and when you must pay after winning. Certified or cleared funds are common and personal checks usually are not; missing the deadline typically forfeits your deposit. See the full glossary for more terms.

Unknown

Not verified from a source yet.

Sources

• N.J.S.A. 54:5-19
• N.J.S.A. 54:5-19.1
• N.J.S.A. 54:5-25
• N.J.S.A. 54:5-32
• N.J.S.A. 54:5-33
• N.J.S.A. 54:5-38
• N.J.S.A. 54:5-46
• N.J.S.A. 54:5-50
• N.J. Division of Local Government Services, Elements of Tax Sales in New Jersey
• N.J. State Commission of Investigation, Questionable Contracting: No Bids, Lax Oversight and a Monopoly in Online Tax Sales (May 2016)

New Jersey does not sell the property at a tax sale; it sells a tax sale certificate, a lien, and the bidding is on the rate of interest. The municipal tax collector enforces the lien by holding a standard or accelerated tax sale (54:5-19), and since 2001 a municipality may satisfy the tax sale law electronically through a nationally recognized electronic municipal tax lien service, so sales are held either in person at the municipality or online (54:5-19.1, L.2001, c.160). The property is sold in fee subject to redemption to the bidder who will take the lowest rate of interest, capped at 18 percent; if the interest is bid below 1 percent the bidding switches to a cash premium, and the certificate goes to the bidder paying the charges plus the highest premium (54:5-32). Payment must be made before the conclusion of the sale or the property is resold, and any premium is held by the collector and returned to the purchaser on redemption (54:5-33). A municipal cost fee of 2 percent of the lien, not less than $15 and not more than $100 per parcel, is paid by the purchaser if it was not paid before the sale (54:5-38). The tax sale law prescribes no statewide bidder registration, deposit, fee, taxpayer identification or W-9 requirement, and payment instruments are set locally (the DLGS guide directs bidders to ask the tax collector about local payment restrictions), so those fields are left unknown; the State Commission of Investigation found that bidders in online sales must register and place a deposit before the auction.