Dig up tulip bulbs after the leaves have turned yellow using a shovel or a spading fork. Yellow leaves are a signal that they are no longer producing nutrients that are stored in the bulb for the next blooming cycle. Yellowing usually occurs in the late spring or early summer, depending on your location.
Rinse all the dirt off of the bulbs and remove any dead leaves. Be thorough with your washing to be sure no insects, fungus, rot or any type of diseased plant material is left on the bulb. Use a small paring knife to cut away any damaged or unhealthy small bulbs that may be growing on the side of the main bulb's roots. Trim away damaged roots and throw away any bulbs that are partly rotted -- do not allow them to be mixed with the good bulbs.
Spread the bulbs out on a tray in a shady area, leaving plenty of room between bulbs for good air circulation. Turn the bulbs at least once a day for three days or more to make sure all outer plant material is dry.
Store dried bulbs on trays or hanging in paper bags in a location away from sunlight where temperatures maintain a constant range between 50 and 70 degrees F. Dry bulbs should not be stacked, as they can produce their own heat and will begin to rot. If you choose to use trays, cover the bulbs with a light coating of sand, peat moss, perlite or vermiculite.