Sheriff sale vs tax sale: what's the difference?

Updated 2026-10-19 · 4 min read

Short answer

At a mortgage-foreclosure sheriff sale you bid on the property itself after a lender's court judgment. At many county tax sales you buy a tax certificate or lien for the unpaid taxes — the owner can still redeem, and you only get the property after a redemption period and further legal steps.

Mortgage foreclosure (sheriff) sale

Triggered by an unpaid mortgage and a court judgment.
Opening bid is around the lender's debt.
You receive a sheriff's deed after the sale is finalized.

Tax sale

Triggered by unpaid property taxes.
Minimum bid is usually the taxes, penalties and costs — often a few thousand dollars.
In states like Indiana you receive a tax sale certificate; the owner can redeem (pay you back plus a penalty) for a period, often up to a year.
If not redeemed, you must send notices and petition the court for a tax deed.

Which is better?

Tax sales need less money but can take a long time and often end in redemption (you earn interest/penalty, not a house). Sheriff sales need more capital but transfer the property sooner. EquityDrop lets you switch between Foreclosures and Tax sales on the map.

Questions people ask

Do I get the house at a tax sale?

Often not right away. In certificate states you get a lien; you may get the property only if the owner doesn't redeem and you complete the deed process.

Are Philadelphia sheriff sales tax sales?

Philadelphia holds both: tax-delinquent sales and mortgage-foreclosure sales. Each EquityDrop listing shows its sale type.

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Keep reading

What is a sheriff sale?

A sheriff sale is a public auction, run by the county sheriff after a court judgment, where a property is sold to pay a debt — usually an unpaid mortgage or delinquent property taxes. The highest bidder wins, but buys the property as-is and must usually pay a deposit on the spot.

Indiana tax sales explained

Indiana counties sell tax sale certificates on properties with delinquent taxes. The minimum bid covers the taxes, penalties and costs; the owner can redeem — typically within one year — and if they don't, the buyer must give statutory notices and petition the court for a tax deed.

General information, not legal or financial advice. Rules vary by county — confirm with the sheriff's office or an attorney.