Property Taxes in Alabama
Alabama's effective property tax rate is 0.36%, ranking #2 out of 50 states (1 = lowest). The median annual property tax paid is $646.
Alabama's effective property tax rate of approximately 0.36% is the lowest in the nation, saving homeowners thousands annually compared to high-tax states. This is partly because Alabama assesses residential property at just 10% of fair market value, one of the lowest assessment ratios in the country. Counties set their own millage rates, so actual bills vary — Jefferson County (Birmingham) residents pay more than those in rural counties — but even the highest-tax Alabama counties remain well below the national average.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Tax Foundation, U.S. Census
Tax Rate
0.36%
Median Annual Tax
$646
National Rank
#2 of 50
1 = lowest
Homestead Exemption
Yes
Annual Property Tax by Home Price
| Home Price | Annual Tax | Monthly |
|---|---|---|
| $200,000 | $720 | $60 |
| $300,000 | $1,080 | $90 |
| $400,000 | $1,440 | $120 |
| $500,000 | $1,800 | $150 |
| $750,000 | $2,700 | $225 |
* Based on the average effective rate of 0.36%. Actual rates vary by county and municipality.
Homestead Exemption in Alabama
Up to 160 acres, unlimited value
File for the homestead exemption after purchasing your primary residence in Alabama to reduce your assessed property value, lowering your annual tax bill. Contact your county assessor's office for the application.
