Property Tax in Alabama (2026): Rates, Exemptions, and Real Numbers

Alabama Property Tax Rates by County

Highest and lowest effective rates within Alabama

Property Tax Calculator — Alabama

Pre-loaded with Alabama's 0.38% effective rate and $228,900 median price

Property Tax by City in Alabama

Annual and monthly property tax by city, based on local median prices and the statewide effective rate

Alabama Homestead Exemption

How Alabama Assesses Property Values

Assessment cycle: Annual assessment. Residential properties assessed at 10% of fair market value.

Property Tax's Impact on Your True Monthly Cost

On a $228,900 home in Alabama

Property tax represents 4% of the true monthly cost in Alabama.

Mortgage Calculator Including Property Tax — Alabama

See your full PITI (principal, interest, taxes, insurance) payment

How Alabama's Property Tax Affects Affordability

$72/month in property tax reduces the home price you can afford. Use the affordability calculator to see the real impact.

Property Tax After Refinancing in Alabama

Refinancing changes your P&I but not your property tax. If your home was reassessed at a higher value, your tax bill increases regardless of your rate.

Frequently Asked Questions

What is the property tax rate in Alabama?

Alabama's effective property tax rate is 0.38%, ranking #50 nationally. The median annual property tax bill is $869 ($72/month). Rates range from 0.19% in Choctaw County to 0.52% in Shelby County. Source: Tax Foundation Property Taxes by State 2024.

Does Alabama have a homestead exemption?

Yes — Alabama offers a homestead exemption for primary residences. Homestead exemption reduces assessed value by $4,000 for state tax and up to $2,000 for county tax. Residential property assessed at 10% of fair market value (vs. 20% for commercial). Additional exemptions for seniors 65+ and disabled veterans.. Apply through your county assessor's office after purchasing your home.

How often is property reassessed in Alabama?

Alabama reassesses property on a annual assessment. residential properties assessed at 10% of fair market value. basis. When your property is reassessed, your tax bill changes based on the new assessed value multiplied by the applicable rate. If you believe your assessment is too high, you can appeal — most counties allow 30-90 days after receiving your assessment notice.

How is property tax calculated in Alabama?

Property tax = Assessed Value × Mill Rate (or effective rate). In Alabama, the effective rate is 0.38% of market value. On a $228,900 home: $228,900 × 0.38% = $869/year. Assessments may use a fraction of market value — the effective rate accounts for this.

Can I appeal my property tax assessment in Alabama?

Yes. If your assessed value is higher than comparable sales in your area, you can file an appeal with your county assessment board. Steps: (1) Get your assessment notice, (2) Research comparable recent sales, (3) File an appeal by the deadline (typically 30-90 days from assessment notice). Studies show 20-40% of appeals result in a reduction. The process is free and you represent yourself — no attorney required.

Are property taxes included in my mortgage payment in Alabama?

Most lenders require an escrow account that collects $72/month ($869/year ÷ 12) along with your mortgage payment, then pays the county on your behalf. If your loan-to-value is below 80%, you may be able to opt out of escrow and pay taxes directly. Note: if your assessed value rises, your escrow payment adjusts and your total monthly cost increases.

What Alabama counties have the highest and lowest property taxes?

Alabama's highest effective rate is in Shelby County at 0.52%. The lowest is Choctaw County at 0.19%. That's a 0.33% spread — on a $228,900 home, the difference is $755/year.