Alabama variant. This is a Alabama-specific version of the Property Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Property Tax Calculator.
Alabama's effective property tax rate of 0.41% means the owner of a median $230,000 home pays roughly $943 per year - a figure that varies widely by state.
How Alabama property tax is calculated
Property tax = assessed value × local millage rate. The 0.41% effective rate shown here is the statewide average of tax paid relative to market value, which smooths over county-by-county differences.
On the $230,000 Alabama median home, that works out to about $943/year or $79/month - often escrowed into your mortgage payment.
About taxes and housing in Alabama
Alabama applies a low graduated income tax that tops out at 5%, and it is one of the few states that still allows a full deduction for federal income taxes paid.
Alabama has one of the lowest effective property tax rates in the country, helping keep overall homeownership costs modest.
Alabama's economy blends automotive manufacturing, aerospace, and agriculture, and the state is known for a below-average cost of living.
Worked example: tax on a $230,000 home
$230,000 × 0.41% = $943 per year. A $500,000 home in Alabama would owe about $2,050 annually at the same effective rate.
Quick reference
- State income tax: 0% on first $500, 5% over $3,000
- State sales tax: 4% (plus 5.29% avg local)
- Median home value: $230,000
- Median household income: $60,660
- Effective property tax rate: 0.41%
- Avg auto insurance: $1,542/yr
Frequently Asked Questions
What is the property tax rate in Alabama?
Alabama's effective property tax rate averages 0.41% of market value per year.
How much property tax on a $230,000 home in Alabama?
About $943 per year at the 0.41% effective rate.