Tax Foreclosure in Miami: Understanding Tax Certificate Sales
How Tax Certificate Sales Work in Miami-Dade County
Florida uses a tax certificate system, not a direct tax foreclosure sale. This two-step process — tax certificate sale, then potential tax deed sale — is governed by Florida Statutes Chapters 197 and 197.502. Understanding this system is critical for Miami-Dade homeowners with delinquent property taxes.
Step 1: Tax Certificate Sale
When taxes go unpaid: Property taxes in Florida are due by March 31 each year. If taxes are not paid, the Miami-Dade County Tax Collector holds a Tax Certificate Sale on June 1 (or the next business day) for all properties with unpaid real estate taxes.
What is a tax certificate? A tax certificate is a first lien on the property. It is not a deed — the buyer does not receive ownership of the property. Instead, the certificate represents the delinquent taxes plus interest.
How bidding works: Tax certificates are awarded to the investor who bids the lowest interest rate. Investors compete by bidding down the rate, starting from a maximum of 18%.
Interest accrual: Tax certificates accrue interest from the date of issuance. The interest rate is whatever the winning bidder accepted.
Certificate lifespan: Tax certificates have a life of seven years from the date of issuance.
Note: Tax certificates are not sold on parcels with a Homestead exemption valued under $250 or those involved in bankruptcy or litigation.
Step 2: Tax Deed Application
22-month trigger: The tax certificate holder can submit a tax deed application through lienhub.com starting 22 months after April 1 of the year the certificate was issued — but before seven years from the certificate date.
Tax deed sale: If a tax deed application is filed, the Tax Collector notifies the property owner and other interested parties. If the delinquent taxes are not paid, the property is sold at a public tax deed auction. Unlike the certificate sale, this is a sale of the property itself.
Surplus proceeds: Under Florida law, if the property sells at a tax deed auction for more than the amount owed, the former owner may be entitled to surplus proceeds.
Programs and Resources That Can Help
Miami-Dade County Tax Collector
The Tax Collector's Office can provide information about your tax status, any outstanding tax certificates, and payment options.
- Phone: (305) 270-4916
- Website: mdctaxcollector.gov
Payment Plans
Contact the Tax Collector's Office to ask about installment payment options for current-year taxes. Florida law allows property owners to pay taxes in four quarterly installments if they enroll before May 1 of the tax year (Florida Statute 197.222).
Dade Legal Aid (Put Something Back)
Provides free civil legal services to qualifying low-income Miami-Dade residents, including bankruptcy assistance that may help protect your home.
- Phone: (305) 579-5733 ext. 2237
- Website: dadelegalaid.org
Legal Services of Greater Miami
Provides free legal assistance to low-income individuals and families.
- Phone: (305) 576-0080
Catalyst Miami
Offers foreclosure prevention assistance and connects homeowners with housing counselors and resources.
- Website: catalystmiami.org
Property Tax Exemptions
Miami-Dade County offers several exemptions:
- Homestead Exemption: Up to $50,000 reduction in assessed value for owner-occupied primary residences. Apply through the Miami-Dade Property Appraiser's Office.
- Senior Exemption: Additional exemption for homeowners 65 and older with household income below the annually adjusted threshold.
- Disability Exemptions: Available for disabled homeowners and disabled veterans.
- Widow/Widower Exemption: $5,000 reduction.
Contact the Miami-Dade Property Appraiser at (305) 375-4712 or visit miamidade.gov/pa to apply.
Emergency Steps If You Are Facing a Tax Certificate or Tax Deed
- Check your property's tax status at mdctaxcollector.gov. Determine whether a tax certificate has been sold on your property and whether a tax deed application has been filed.
- Pay delinquent taxes as soon as possible. You can redeem a tax certificate at any time by paying the face amount plus accrued interest before a tax deed is issued.
- Contact the Tax Collector at (305) 270-4916 to understand exactly what you owe and your options.
- Make sure you have the Homestead Exemption. If you own and live in your home and do not have this exemption, apply immediately through the Property Appraiser at (305) 375-4712. This alone can save you hundreds of dollars per year.
- Call Dade Legal Aid at (305) 579-5733 or Legal Services of Greater Miami at (305) 576-0080 for free legal help.
- If a tax deed application has been filed, act immediately. Once the tax deed sale occurs, you lose your property. An attorney may be able to help you stop or delay the sale.
- Visit auctionblock.org/get-help for additional resources and guidance.
Know Your Rights
- You have the right to redeem a tax certificate at any time before a tax deed is issued by paying the face amount plus accrued interest.
- You have the right to receive notice before a tax deed sale.
- You have the right to surplus proceeds if your property sells at a tax deed auction for more than the amount owed.
- You have the right to apply for property tax exemptions that can reduce your tax burden.
- You have the right to contest your property's assessed value through the Value Adjustment Board.
Disclaimer
This guide is provided for informational purposes only and does not constitute legal advice. AuctionBlock.org is a mission-driven company that has not yet served its first family. Tax certificate and tax deed laws, exemption thresholds, and program eligibility change frequently. Verify all deadlines and eligibility requirements directly with the agencies listed above. If you are facing a tax deed proceeding, consult a licensed attorney in Florida.
Need help? Visit auctionblock.org/get-help to connect with resources in your area.