Yes — a federal tax lien is automatically released within 30 days after you pay your tax debt in full or enter a bond securing the debt. You can also request a lien withdrawal (which removes the lien from public record entirely, as if it never existed) if you've entered into an installment agreement and the lien is hurting your ability to pay (for example, by blocking credit). The IRS's Fresh Start Initiative made lien withdrawals easier to obtain. Paying the debt only releases the lien going forward — it doesn't automatically repair your credit report. Request Form 668(Z) (Certificate of Release) after paying and send it to the credit bureaus yourself.