tax lien
Kentucky tax lien guide
Kentucky permits registered third-party purchasers to buy certificates of delinquency through the county clerk. Purchasing a certificate acquires a debt claim secured by the property, not immediate ownership.
Source review applies to the named instrument and scope in the worked example below. It does not cover every county procedure or transaction in Kentucky.
When does the clock start?
The state clerk manual distinguishes the purchaser’s acquisition amount and date from the taxpayer’s earlier delinquency balance.
How and when is a return earned?
1% per calendar month or fraction
What amount earns a return?
Amount paid to the county clerk for the certificate, not the older underlying tax face amount.
What happens at redemption?
The taxpayer can satisfy the certificate through the applicable collection process; installment agreements may change outstanding principal.
When does earning end?
Unpaid certificates require further enforcement rather than automatic possession.
Does property use change the rules?
Classification sources checked 2026-09-15. Review applies to the procedures described below; calculator support is stated separately.
In Kentucky Revenue’s ordinary real-property certificate-of-delinquency collection process reviewed, residential, farm and commercial use do not select a different purchaser-interest formula. The purchased certificate balance and collection stage are the starting points.
A homestead exemption or agricultural valuation can change the underlying assessment; it is not evidence of a Texas-style redemption premium. Personal-property bills are a separate category.
What to verify before bidding
Obtain the real-property tax bill, assessor classification and exemption record, certificate purchase statement, and any payment agreement or correction.
What this calculator covers
The ordinary third-party certificate example does not determine assessment exemptions, revalue farmland, or calculate a payment-plan payoff.
Try the rules
A worked redemption example
Kentucky third-party certificate of delinquency. Original private purchase only, no subsequent taxes, added costs, partial payments, special status, bankruptcy, court action or deadline extension. Original purchase during the initial year, without an installment plan or collection fees.
Amount paid to the county clerk for the certificate, not the older underlying tax face amount.
The prefilled amounts and any collector conventions below are illustrative assumptions. Confirm those facts for an actual holding.
How the return grows
Interest over time.
Original private purchase only, no subsequent taxes, added costs, partial payments, special status, bankruptcy, court action or deadline extension. Original purchase during the initial year, without an installment plan or collection fees.
View values at each change
| Date | Interest and premium |
|---|---|
| Mar 15, 2026 | $10.00 |
| Apr 1, 2026 | $20.00 |
| May 1, 2026 | $30.00 |
| Jun 1, 2026 | $40.00 |
| Jul 1, 2026 | $50.00 |
| Aug 1, 2026 | $60.00 |
| Sep 1, 2026 | $70.00 |
| Oct 1, 2026 | $80.00 |
| Nov 1, 2026 | $90.00 |
| Dec 1, 2026 | $100.00 |
| Jan 1, 2027 | $110.00 |
| Feb 1, 2027 | $120.00 |
| Mar 1, 2027 | $130.00 |
| Mar 15, 2027 | $130.00 |
1% per calendar month or fraction Values use the inputs above and the same calculator as the worked example.
- Interest
- $40.00
- Minimum top-up at redemption
- $0.00
- Redemption premium
- $0.00
- Statutory interest and premium at redemption
- $40.00
Estimated repayment including the documented base: $1,040.00.
- 4 chargeable calendar months at 12% annual simple interest divided by 12. A partial calendar month counts as a whole month, including the purchase month. Final interest rounded to cents.
- Conditional investor proceeds at redemption; excludes later advances and expenses. This is not recognized accounting income or a collector payoff quote.
Illustrative statutory components only, not investment profit. Nonrefundable overbids and fees can produce a loss even when interest is earned. Cash receipts, property value, sale proceeds and booked income are separate.
Before you bid
What to watch for
- Adding every collection fee to interest-bearing principal can overstate the payoff.
- Calculator scope: Original private purchase only, no subsequent taxes, added costs, partial payments, special status, bankruptcy, court action or deadline extension. Original purchase during the initial year, without an installment plan or collection fees.
Read the rules
Official sources
Use the governing law and the county’s sale terms to confirm the rules for your certificate or deed.
Keep reading
Related guides
Compare nearby states, then return to the full library or the product page that matches this instrument.