Hi Russel,

The short answer is yes. The 10% interest rate you bid remains the fixed interest rate for the life of the certificate until it is either redeemed by the property owner or you initiate the tax deed application process.

In Florida, tax lien certificates do not "reset" or change their interest rate annually; however, there are a few important nuances to how that interest is calculated and how long it lasts.

Key Interest Rules for Florida Certificates:

Simple Interest (Not Compounded): Your 10% interest is calculated as simple interest on the face value of the certificate. It does not compound year-over-year.

Monthly Accrual: Interest accrues at a rate of 0.833% per month (10%÷12). It is credited on the first day of each month, starting June 1st of the year the certificate was issued.

The 5% Minimum Rule: Florida law provides a "guaranteed" minimum return of 5% of the face value upon redemption (unless the winning bid was 0%). Since your bid was 10%, this 5% floor only matters if the property owner redeems the certificate within the first 6 months. After month 6, your accrued 10% annual interest will naturally exceed that 5% minimum.

7-Year Expiration: A tax lien certificate is valid for 7 years from the date of issuance. If you do not apply for a tax deed or the certificate isn't redeemed within that window, the lien expires and becomes worthless.

The Timeline to a Tax Deed

Since you have a 2024 certificate (likely for the 2023 tax year), here is how the timing typically plays out:

Years 0–2: You earn your 10% simple interest as the "priority lien holder."

After 2 Years: You become eligible to apply for a tax deed. In Florida, this is generally 2 years after April 1st of the year the taxes became delinquent.

During the Tax Deed Process: Once you apply for the deed, you must pay off all other outstanding life-of-property taxes and fees. These additional costs then also begin earning interest at the original bid rate of your certificate (10%) while the clerk processes the sale.

You can get 1-on-1 coaching and customized portfolio strategies from our Tax Lien Professor that literally taught Tony and I how to buy Tax liens in our Tax Lien Mentoring course here. The feedback on the course is phenomenol, we accept 4 students per month since it's 1-on-1.