🌆 Illinois Tax Sale Properties 2026
Illinois tax sale properties are sold under the Illinois Property Tax Code (35 ILCS 200/21). Illinois is a tax lien state — investors purchase lien certificates at annual county sales, not the properties themselves. The certificates earn a penalty rate bid at auction. After a 2.5-year redemption period, if the property owner does not pay, the lien holder can petition the court for a Tax Deed. Illinois also holds a biennial Scavenger Sale for severely delinquent properties.
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Updated daily from official county sources · 2026
How Tax Sales Work in Illinois
County collectors hold annual tax sales, typically in October or November. Buyers bid down the penalty rate on delinquent tax certificates. The certificate earns the penalty rate if the owner redeems. After 2.5 years without redemption, the certificate holder files a petition in the county circuit court for a Tax Deed. The court process includes notice to all interested parties and a judicial hearing.
Each Illinois county holds an annual tax sale for properties with unpaid taxes. Cook County holds its sale in November; collar counties (DuPage, Lake, Kane, Will, McHenry) hold sales in autumn months. The county collector advertises the sale and investors register in advance to participate. Each certificate represents a specific property's delinquent tax obligation.
Illinois uses a unique penalty-rate bidding system. The starting rate is 18% per 6-month period (i.e., 36% annually). Investors bid this rate down — the lowest bidder wins the certificate. In competitive markets like Cook County, penalties are often bid to 0%. The penalty is paid by the property owner upon redemption, on top of the principal delinquent tax amount.
After purchase, the property owner has 2.5 years to redeem the certificate by paying the original delinquent taxes plus the penalty rate plus all subsequent taxes paid by the certificate holder. The redemption clock starts from the date of the tax sale. The certificate holder must pay all subsequent year taxes to maintain their lien and extend the period properly.
Every two years, Illinois counties hold a Scavenger Sale for properties that have been delinquent for 2 or more years and were not sold at prior annual sales. Properties at Scavenger Sales are offered at minimum bids set by the county (often significantly below assessed value). This is a unique opportunity for investors seeking distressed properties in Cook County and Illinois's other urban counties.
If the property is not redeemed within 2.5 years, the certificate holder must file a Petition for Tax Deed in the county circuit court. The petition process requires notice to all persons with an interest in the property (owner, mortgage lenders, lienholders) by certified mail and publication. The court schedules a hearing. If no objection is sustained, the court issues an Order directing the county clerk to issue a Tax Deed.
Upon court order, the county clerk issues a Tax Deed. In Illinois, the Tax Deed carries a 3-year contestability window — the deed can be challenged in court for up to 3 years after issuance on limited grounds (including constitutional due process challenges). Most investors file a quiet title action immediately after receiving the deed to obtain a more defensible title for resale and title insurance purposes.
Investor Tip
In Cook County, the annual tax sale is intensely competitive and bid penalties often reach 0%. Focus on the Scavenger Sale for better yields, where properties with multiple years of delinquent taxes are auctioned at fixed prices — these often represent distressed situations where a deed is more achievable. Always use a local Illinois tax deed attorney for the court petition process.
Illinois Tax Sale FAQ
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