Alabama Property Tax

Effective Property Tax Rate

37.83%

Median Annual Tax

$738

Median Home Value

$195,100

Alabama Property Tax Overview

Keywords: Alabama property tax, property tax in Alabama, Alabama property tax rate

1. Introduction

This article presents the most recent publicly available data on property taxes in Alabama. All figures are drawn from the U.S. Census Bureau’s American Community Survey (ACS) 5‑year estimates for 2023 unless otherwise noted.

2. Key Statistics (2023 ACS)

Metric	Value
Median home value	$195,100
Effective Alabama property tax rate	0.38 %
Median annual property tax payment	$738
National average effective rate	0.97 %
Alabama’s deviation from the national average	‑60.91 %
Rank among U.S. states/territories	2nd lowest (out of 52)

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

3. Example Property‑Tax Calculations

Using the effective rate of 0.38 %:

Assessed Home Value	Approximate Annual Property Tax
$250,000	$946
$500,000	$1,892

These amounts are derived by multiplying the home value by the effective tax rate (0.0038). Actual bills may differ because of local millage rates, exemptions, and assessment practices.

4. Variation by County

Property tax rates in Alabama are not uniform across the state. Each county (and, in many cases, individual municipalities) sets its own millage rate, which is applied to the assessed value of the property. Consequently:

The effective tax rate of 0.38 % reflects a statewide average.
Some counties may have rates higher or lower than the average, influencing the final tax bill for a given property.

Taxpayers should consult the local county tax assessor’s office for the precise rate applicable to a specific property.

5. Comparison to the National Average

Alabama’s effective property‑tax rate (0.38 %) is 60.91 % lower than the national average of 0.97 %.
This places Alabama second among all 50 states and the District of Columbia in terms of the lowest effective property‑tax burden.

The lower rate results from comparatively modest local millage rates and the state's assessment practices.

6. Implications for Retirees and Landlords

Retirees

A lower effective property‑tax rate can reduce the overall cost of homeownership for seniors.
Alabama offers a homestead exemption of up to $3,000 for primary residences, which modestly lowers the taxable value for qualifying owners, including many retirees.

Landlords

Rental property owners are subject to the same assessment and tax rates as owner‑occupied homes.
The relatively low Alabama property‑tax rate may lower operating expenses for landlords compared with many other states, potentially influencing investment decisions.

Both groups should verify any additional local exemptions or incentives that may apply in specific counties or municipalities.

7. Frequently Asked Questions

Q1: What is the average property‑tax bill for a homeowner in Alabama?
A: Based on the median home value of $195,100 and the effective tax rate of 0.38 %, the median annual property tax is approximately $738. Actual bills vary with local millage rates and any applicable exemptions.

Q2: How does Alabama’s property‑tax rate compare to the national average?
A: Alabama’s effective rate of 0.38 % is about 60.91 % lower than the national average of 0.97 %, ranking the state second lowest among all U.S. states and territories.

Q3: Do property‑tax rates differ by county within Alabama?
A: Yes. Each county (and many cities) sets its own millage rate, so the effective rate can be higher or lower than the state average of 0.38 % depending on the locality. Prospective buyers and owners should check with the relevant county tax assessor for precise rates.

All data presented here are based on the most recent ACS estimates (2026) and publicly available state and local tax information. No opinions or promotional language are included.

Neighboring States