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The Alabama real property tax rates are some of the lowest in the nation. In fact, Alabama has a median effective real property tax rate of 3.33 (or $3.33 per $1,000 of real property value).
Do I have to pay property taxes? If you are over 65 years of age, or permanent and totally disabled (regardless of age), or blind (regardless of age), you are exempt from the state portion of property tax. County taxes may still be due. Please contact your local taxing official to claim your homestead exemption.
Annual Value (AV) x Property Tax Rate = Property Tax Payable For example, if the AV of your property is $30,000 and your tax rate is 10%, you would pay $30,000 x 10% = $3,000. You may also consider using the IRAS property tax calculator.
Do I have to pay property taxes? If you are over 65 years of age, or permanent and totally disabled (regardless of age), or blind (regardless of age), you are exempt from the state portion of property tax. County taxes may still be due. Please contact your local taxing official to claim your homestead exemption.
The Alabama citizens who are over 65 years of age, disabled, or legally blind are exempt from the state portion of property tax.
Under Alabama law, a Homestead Exemption is a tax deduction a property owner may be entitled to if he or she owns a single family residence and occupies it as his/her primary residence on the first day of the tax year (October 1st).
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.
In most cases, the Department has three years from the date a tax return is due or filed, whichever is later, to audit your tax return and assess any additional tax, penalty, and interest due.
The Revenue Commission will mail a letter to you annually to make this claim; however, it is your responsibility to make sure the claim is done each year. To claim your homestead exemption, please contact your local county office.
Homestead Exemption 1 is equal to $4,000 of the assessed value in state taxes as well as $2,000 of the assessed value for county taxes.