Alabama Property Tax

While the federal tax brackets are the same across the board (based on your filing status), state taxes are another story. In addition to income state taxes, any individual who owns real property is subject to state real property taxes.

Real property tax is a system of taxation that requires owners of land and buildings to pay an amount of money based on the value of their land and buildings.

In this post, we’ll discuss Alabama property taxes (on real property) – including who owes, how they’re calculated, what they’re used for, how to pay, and when they’re due. Read on to gain insight!

Who Owes Alabama Property Taxes?

If you own real property in Alabama, you will be required to pay taxes on it. So, if you own any real property as an individual or business, you pay real property tax on it.

If your real property was purchased mid-year, there is a chance your realtor will work it out that you and the seller split the cost of real property taxes within the calendar year. Your mortgage interest statement provides documentation if this is the case or not.

How is Real Property Tax Calculated in Alabama?

In Alabama, real property taxes are assessed based on real property classification, exemptions, and millage rates. Find out more information about Alabama real property tax calculations.

What Are Alabama Property Tax Rates?

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). The national median is 10.35.

View Alabama tax rates by county.

What Are Property Taxes Used For?

The money collected by Alabama is used for multiple public services throughout the state. It could be used for:

• First responders and other law enforcement
• General government services
• Local levies
• Municipal infrastructure and land construction or improvements
• Municipal employees’ pay
• Resident services like garbage pickup
• Recreational services
• Protective services

How Do You Pay?

If you pay your mortgage, it’s likely you are already paying your Alabama real property taxes. A standard mortgage payment includes:

• Principal
• Interest
• Homeowner’s insurance
• Alabama real property taxes

Look at your current mortgage statement and determine if Alabama real property taxes are paid as part of your monthly mortgage. It will likely be listed as a line item on the statement.

• You can pay your Alabama real property taxes online at https://www.officialpayments.com/pay-alabama-taxes.jsp.
• You can check with the Alabama Department of Revenue for more information.

When Are These Taxes Due?

Alabama property taxes are due October 1 and are delinquent after December 31.

How Do You Contact the Department for More Information?

For more contact information, visit https://revenue.alabama.gov/contact/.

Where to Go for More Tax Help

Real property taxes can be confusing. Gauging how the real property tax is calculated and the proper amount is important, otherwise, you may be paying too much, too little, or not at all. Beyond this, there is a federal real estate tax deduction you may be able to take. (See SALT deduction details.) But to determine how much the deduction is, who gets it, and when can be tricky.

If you’re looking for additional support with your Alabama real property tax questions, look no further than H&R Block Virtual. We’ll pair you with a tax pro with state-specific expertise. You can have your taxes done by a real tax pro without visiting an office.

Prefer a different way to file? No problem – you can find Alabama state tax expertise with all of our ways to file taxes.