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Sheet AL · 2026 rules

Alabama Property Tax Calculator

Owner-occupied single-family residential property falls in Class III, assessed at 10% of its appraised value. Other property classes use different percentages. The assessment percentage converts value into the base taxed by local millage; it is not the percentage of market value paid as tax.

Rules verified 3 primary sources Editorial policy

Estimate your 2026 Alabama bill

Approved shared exemption, bill credits and charges (optional)

The same assessed-value amount must apply to State property levy, County and county-school levies, Municipal and other levies. Different approvals or bases require the prepared levy worksheet. Do not repeat relief already deducted.

Choose the recorded property class and approved relief, then enter the current rates. The illustrated rate is hypothetical.

Alabama · 2026 assessment worksheet Needs inputs
Alabama estimated annual property tax —
  • Tax — State property levy —
  • Tax — County and county-school levies —
  • Tax — Municipal and other levies —
  • Credits subtracted —
  • Fixed charges added —
Per month (annual ÷ 12) —
What was applied Enter the assessor’s full value from the assessment notice.
Assessed value after ratio and cap —
Taxable value — State property levy —
Taxable value — County and county-school levies —
Taxable value — Municipal and other levies —
Effective rate on market value —

What this estimate leaves out

Different allowances for different levies need separately approved taxable bases in the prepared levy worksheet. The extra exemption above subtracts the same assessed-dollar amount from every modeled levy.

How Alabama turns value into a tax bill

Alabama statewide rules
StepAlabama ruleSource
Value The Department’s homestead guidance distinguishes state and county exemptions. Its ordinary H-1 category lists $4,000 of assessed value for state taxes and $2,000 for county taxes. These are reductions of assessed value, with eligibility and local variations, rather than dollar reductions of the bill. Combining all millage against one reduced value can therefore produce the wrong result. [1]
Assessment Choose the actual approved property class: approval required; Class III approved owner-occupied single family: 10%; Class II other real property: 20% [1]
Annual limit Eligible Class II/III unchanged-property assessment growth is capped at 7%, rounded down to a $20 increment.Confirm no transfer, classification change, new improvements or tax increment district exception. Family transfers may qualify. The cap applies before homestead exemptions, not to the final bill. [3]
Exemption Approved H 1 state: $4,000 off assessed value; State property levy.Use only an approved exemption shown by the assessing authority.
Exemption Approved H 1 county: $2,000 off assessed value; County and county-school levies.Use only an approved exemption shown by the assessing authority.
Exemption Approved H 2 state: 100% off assessed value; State property levy.Use only an approved exemption shown by the assessing authority.
Exemption Approved H 2 county: $5,000 off assessed value; County and county-school levies.Use only an approved exemption shown by the assessing authority.
Exemption Approved H 4 state: 100% off assessed value; State property levy.Use only an approved exemption shown by the assessing authority.
Exemption Approved H 4 county: $2,000 off assessed value; County and county-school levies.Use only an approved exemption shown by the assessing authority.
Exemption Approved H-3 principal residence: 100% off assessed value; all levies.Use only an approved exemption shown by the assessing authority.
Rate State property levy: 6.5 mills everywhere in Alabama.State property levy from the current parcel tax statement; local rate is not a statewide average.
Rate County and county-school levies: local rate — you enter it.County and county-school levies from the current parcel tax statement; local rate is not a statewide average.
Rate Municipal and other levies: local rate — you enter it.Municipal and other levies from the current parcel tax statement; local rate is not a statewide average.

Alabama separates the assessment class from the homestead allowance

The Department’s homestead guidance distinguishes state and county exemptions. Its ordinary H-1 category lists $4,000 of assessed value for state taxes and $2,000 for county taxes. These are reductions of assessed value, with eligibility and local variations, rather than dollar reductions of the bill. Combining all millage against one reduced value can therefore produce the wrong result.

An Alabama worksheet should use the approved taxable value for each affected levy. Identify the assessment class first, then confirm the exemption recorded by the county office. If the state and county bases differ, select two groups. Enter a bill credit separately from a reduction in assessment.

Illustration: a $250,000 Class III home starts at $25,000 assessed. Suppose the approved notice shows a $21,000 state base at 6.5 mills and a $23,000 county base at 30 mills. The levy lines are $136.50 and $690, totaling $826.50 before other districts or charges.

The cap defines taxable assessed value before exemptions and applies to eligible Class II and III parcels. Transfers, additions, classification changes and tax increment districts have specific exceptions. A tax increase can still exceed 7% if millage changes.

H-2, H-3 and H-4 depend on different age, disability and income definitions; choose the assessor’s approved category. H-3 exempts all included ad valorem levies, while H-1 and H-4 leave municipal treatment separate.

Worked example

$250,000 ×10% = $25,000 assessed. Approved H-1: state ($25,000−$4,000)×6.5/1000=$136.50; county ($25,000−$2,000)×30/1000=$690; municipal rate 0. Included total $826.50.

Alabama worked example
LineTaxable valueTax
State property levy at 6.5 mills$21,000.00$136.50
County and county-school levies at 30 mills$23,000.00$690.00
Municipal and other levies at 0 mills$25,000.00$0.00
Annual total$826.50

Left to your local bill

Census context, not a rate

American Community Survey 2020–2024: median owner-occupied value $209,900 (±$1,076), median real-estate taxes $788 (±$6). Dividing one by the other gives 0.38% for Alabama. Tables B25077 and B25103; why it is only context.

Sources

  1. revenue.alabama.govAlabama Department of Revenue: Property Tax Assessment, read .
  2. revenue.alabama.govAlabama DOR: Homestead Exemptions, read .
  3. revenue.alabama.govAlabama DOR, 7% cap implementation, read .

Bordering jurisdictions

Rules verified by the Property Tax Calculator Editorial Team. Report a correction