How do you remove a paid tax lien from ones credit report?

You can't remove correct items from your credit report. If the item is false, or is improperly being reported as being still past due, then you can write a letter to each of the credit agencies asking them to verify the item or remove it. You should send the letter by certified mail so you have proof that they received it. If your credit reports are correctly showing the lien then there is no legal way to remove it from your report. You cannot remove correct info from your credit report even if the account has been settled. Think of your credit report as a history book on your payment history. You did the right thing to get the account current but the fact is that it was still past-due at one time.

For tax liens, there isn't much you can do but wait until the credit agency removes it. You can update it to ensure that the balance is correct. After the required # of years, the item can then be removed. The credit repair agencies only harrass the credit reporting agencies with bogus letters saying that the item isn't correct. The reporting agencies want proof and you just end up paying for the harrassing letters that didn't do any good. DON'T WASTE YOUR TIME AND MONEY

Please see link for the answer to your question. This is why you have to handle this matter way before it becomes a lien.

Tax liens can legally stay on your credit file for up to 10 years even if they have been paid. You can try to get it removed by contacting the CRA or the agency holding the lien BUT it might not work.