Overview of Alabama Taxes
Alabama has some of the lowest property taxes in the country. While property taxes in the state serve as an important source of revenue for local governments, public services and education, the median Alabama homeowner pays just $701 per year in property taxes. That's less than a quarter of the national median of $3,057.
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To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
How Alabama Property Taxes Work
Alabama property taxes are due on Oct. 1 of each year and any taxes unpaid as of Dec. 31 are considered delinquent. Taxes are based on property’s value, although actual millage rates apply to “assessed” value, which varies depending on the primary use of the property.
For residential property, the assessed value is 10% of the appraised, or market, value. So, for example, a home with an appraised value of $200,000 would have an assessed value of $20,000 (10% of $200,000). If that home was subject to a total property tax rate of 30 mills, the total annual property tax would be $600 ($20,000 x [30 / 1000]).
If you’re considering becoming a homeowner in Alabama or are looking into refinancing a property there, check out our Alabama mortgage guide for important information about getting mortgages and details about mortgage rates in the Yellowhammer State.
A financial advisor can help you understand how homeownership can fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Alabama Property Tax Rates
Property tax rates are represented in “mills,” a unit equal to one tenth of a percent (so 1% equals 10 mills). Total rates vary depending on the location of the property. For 2025, the statewide millage is 6.5, along with local rates charged by counties, school districts and municipalities. Additionally, there are some exemptions that may reduce your total property tax burden.
Because of these variations between mill rates at the local level and the exemptions available to homeowners, it is easier to compare locations by looking at effective property tax rates. Effective property tax rates are the median amount of property taxes actually paid each year as a percentage of the median home value. The table below shows the effective tax rates for every county in Alabama.
Want to learn more about your mortgage payments? Check out our mortgage loan calculator.
Jefferson County
The largest county in Alabama, Jefferson County also has the highest property taxes in the state (although they are still relatively low in comparison with the rest of the country). In fact, homeowners in the county pay a median amount of $1,282, as compared to the lowest county in the state, Choctaw County, where residents typically pay $222 annually.
If you have questions about how property taxes can affect your overall financial plans, a financial advisor in Birmingham can help you out.
Mobile County
The average homeowner in Mobile County pays $831 annually in property taxes, the fifth-highest average payment in the state. Of course, actual payments depend on your home value and where you live. However, the county-wide median home value is $164,600.
Madison County
Residents of Madison County are home to the one of the highest home value parts of Alabama. The county has a median home value of $242,900, which is third in the state. The median real estate tax payment is similarly high in the state at $990.
Montgomery County
Montgomery County has an upper middle of the pack average effective tax rate at 0.38%. This is due to the state's low median home value of $151,300, but $570 median real estate tax payment.
Shelby County
Shelby County is the fifth-largest county in Alabama. The median home value there is $276,500 and the median annual property tax payment is $1,279. That’s the highest mark of any county in the state, but it's still lower than the national average, which is $3,057.
Tuscaloosa County
Home to the city of Tuscaloosa and the University of Alabama, Tuscaloosa County collects property taxes to fund education. The county features a sizable median home value of $218,800, good for sixth-highest in the state. Its average effective rate is just 0.33%, though.
Baldwin County
The median annual property tax payment in Baldwin County is just $796, about one-fifth of the U.S. mark for annual property taxes. The county has a median effective property tax rate (property taxes as a percentage of market value) of about 0.30%.
Lee County
Lee County has some of the highest property taxes in Alabama, although taxes are still relatively low in relation to the rest of the U.S. Lee County homeowners pay a median of $1,106 annually in property taxes. Its average effective tax rate is towards the top of the state at 0.49%.
Morgan County
Morgan County is home to Decatur. The county has a fairly high median home value of $174,800, with a middle of the pack median property tax payment of $633. In turn, the county's average effective rate is 0.36%.
Calhoun County
The median annual property tax payment in Calhoun County is $592, with a median home value of $140,500. That puts the county's average effective tax rate at 0.42%, one of the higher marks in Alabama.
