🗽 New Jersey Tax Sale Properties 2026

Every New Jersey municipality — all 564 of them — is required by statute to hold an annual tax sale for properties with delinquent taxes. Sales are held between October and the following January. The municipality advertises the sale in a local newspaper and on its website. TaxSalesPortal.com tracks all NJ municipal tax sale notices and publishes comprehensive listings.

New Jersey tax sales use a dual-bidding system. First, bidders compete by bidding down the interest rate from 18% maximum. If multiple bidders bid 0%, they then bid up a 'premium' — a cash amount paid above the lien face value. The premium does NOT earn interest; only the base lien earns interest at the bid rate. Premiums are forfeited if the owner redeems (premium is not returned to the investor).

After purchase, the municipality issues a Tax Sale Certificate. The certificate must be filed with the county clerk. The certificate holder is responsible for paying subsequent year taxes (called 'subsequent taxes') to maintain priority. These subsequent tax payments are added to the redemption amount and do earn interest at the same bid rate.

The property owner has at least 2 years from the date of the tax sale to redeem. Redemption requires payment of the full lien amount plus accrued interest plus all subsequent taxes paid plus interest on those. The municipality handles redemption calculations. After 2 years, the certificate holder can act — but the owner retains the right to redeem at any time up until the foreclosure judgment is entered.

After the 2-year redemption period expires, the certificate holder files a foreclosure complaint in the NJ Superior Court, Chancery Division, in the county where the property is located. All parties with an interest (property owner, mortgage lenders, creditors) must be named as defendants and served. The court process typically takes 6 to 18 months. Uncontested foreclosures proceed faster than contested ones.

If no redemption occurs before judgment, the court enters a Foreclosure Judgment extinguishing all junior liens and the owner's equity of redemption. The judgment directs the county clerk to issue a Tax Deed to the plaintiff. The Tax Deed in NJ conveys fee simple title, extinguishing mortgages, liens, and the owner's equity. IRS federal tax liens require separate attention — the IRS has a 120-day right of redemption after the foreclosure judgment.