Property Tax

In the State of Alabama, property tax is based on three factors:

• Property Classification
• Millage Rate
• Exemptions

Property Classification

Your Alabama taxes are calculated using your property's Assessed Value. This is determined by multiplying the Appraised Value by the corresponding Property Classification, which is also known as the Assessment Rate.

For more information regarding property classification, view Classes of Property.

Millage Rate

Once the Assessed Value of your property has been determined, multiply it by the appropriate Millage Rate for the area in which you live. Millage is the tax rate expressed in decimal form. Millage rates are determined by the county commissions and other taxing agencies.

A mill is one-tenth of one cent. (.001)

1 mill = $0.001

10 mills = one penny or $0.01

100 mills = ten cents or $0.10

1000 mills = one dollar or $1

For example:

$100,000 (Appraised Value)  X (Residential Rate: 10%) =$10,000 (Assessed Value)

$10,000 (Assessed Value) X .0325 (County Millage Rate of 32.5 mills) = $325.00 (Tax Amount)

To calculate your current millage rate, view Millage Rates.

Please note: The Property Tax Division takes no responsibility for and makes no assertions as to the accuracy of the millage rate information.

Exemptions

After determining your Unadjusted Tax Bill, subtract any Exemptions you might have. This gives you the Adjusted Tax Bill.

A homestead exemption is defined as a single-family owner-occupied dwelling and the land thereto, not exceeding 160 acres. The property owner may be entitled to a homestead exemption if he or she owns a single-family residence and occupies it as their primary residence on the first day of the tax year for which they are applying. There are four different types of exemptions a home owner can claim in the State of Alabama. Please visit your local county office to apply for a homestead exemption.

Homestead Summary Chart

For more information regarding homesteads and Title 40-9-19 through 40-9-21, view the Code of Alabama 1975.

For more information regarding Property Tax Exemptions, view the Exemptions page.