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Property Tax Assessment

Property Tax Assessment is the process through which the assessed value of a property is determined in order to calculate the property taxes due. In Alabama, property tax is based on property classification, millage rates, and 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.

Appraised Value x Property Classification = Assessed Value

Property Classes

Class Description Assessment Percent
I All property of utilities used in the business of such utilities 30%
II All property not otherwise classified 20%
III All agricultural, forest, and single-family owner occupied residential property, including owner occupied residential manufactured homes located on land owned by the manufactured home owner, and historic building and sites 10%
IV All private passenger automobiles and motor trucks of the type commonly known as “pickups” or “pickup trucks” owned and operated by an individual for personal or private use and not for hire, rent, or compensation 15%

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 rates are determined by the county commissions and other taxing agencies. Millage is the tax rate expressed in decimal form.

  • 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
Assessed Value X Millage Rate = Unadjusted Tax Bill

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)

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.

Unadjusted Tax Bill – Exemptions = Adjusted Tax Bill

Homestead Exemptions

A homestead 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. Learn more

Visit your local county office to apply for a homestead exemption. For more information regarding homesteads and Title 40-9-19 through 40-9-21, view the Code of Alabama 1975 .

Property Exemptions

Types of property exemptions and their corresponding Code of Alabama section are available here.