What is the Property Tax Rate in Alabama?
Based on HomeLight’s analysis of publicly available data, the average effective property tax rate for a primary residence in Alabama is approximately 0.36% of its estimated value. This is lower than the national average of 0.90%.
For example, with a 0.36% effective tax rate, a homeowner with a $230,000 home might pay around $828 in annual property taxes.
An effective property tax rate represents the actual percentage of a property’s market value that a homeowner pays in taxes, considering the assessed value and any exemptions or deductions.
Note: HomeLight’s Alabama property tax calculator provides a ballpark estimate for a primary residence using average rates. Your tax can vary based on location and the specific taxing districts (e.g., schools, fire districts, and libraries) that apply to your parcel. For a precise number, contact County Offices/Appraisal and Assessment Records.
Tell us a little bit about your plans (where you’re looking to buy and when you want to make a purchase), and we’ll connect you with top-rated buyer’s agents in your area. It takes only a few minutes, and it’s free.
Step One: Consult with a Trusted Buyer's Agent
Are There Property Tax Exemptions in Alabama?
Depending on the homeowner and the property type, some homeowners may qualify for property tax exemptions in Alabama, which can reduce their overall tax burden. Alabama offers several possible homestead exemptions for eligible individuals. For a complete list, consult the Alabama Department of Revenue’s list of homestead exemptions.
When Are Alabama Property Taxes Due?
Alabama property taxes are due annually on October 1. If not paid by January 1, they are considered delinquent.
What Do Property Taxes Pay For in Alabama?
Local property taxes in Alabama pay for important local services, including:
- Public schools
- Police, fire, and EMS services
- Roads, streets, and traffic signals
- Parks, libraries, and community centers
- City and county government operations
- Infrastructure like water, sewer, and trash services
- Repayment of local bond projects (such as transit and school improvements)
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
Yes, You Can Buy Before You Sell. Why Move Twice?
What Does It Cost to Buy a Home in Alabama?
How Much House Can You Afford?
Affordability in Alabama depends on your income, debt, credit score, and mortgage rate. With a median household income of around $60,660 in the Cotton State, a buyer might afford a home in the $180,000–$196,000 range using standard debt-to-income guidelines.
Use HomeLight’s Home Affordability Calculator to estimate your budget based on your income, debts, and current rates.
What Down Payment Will You Need in Alabama?
According to Visual Capitalist, the average down payment on a house in Alabama is 10.7%. However, down payment amounts vary widely depending on loan type and credit score. While 20% used to be the expected standard, many buyers put down between 5% and 15%, with 3% options available for FHA and some conventional first-time buyer loans.
For a $230,000 home, here’s what your down payment could look like:
- 3% down = $6,900
- 5% down = $11,500
- 10% down = $23,000
- 15% down = $34,500
- 20% down = $46,000
Try HomeLight’s Down Payment Calculator to see how different down payments affect your monthly payment and loan size.
How Much Are Closing Costs in Alabama?
Buyers in Alabama can expect to pay about 2% to 5% of the purchase price in closing costs. These may include:
- Loan origination and underwriting fees
- Title insurance and escrow fees
- Appraisal and inspection costs
- Prepaid property taxes and homeowners’ insurance
- Filing and recording fees
For a $230,000 home, that means estimated closing costs of $4,600 to $11,500. Use HomeLight’s Closing Costs Calculator to get a personalized estimate based on your expected Alabama home purchase price.
How To Find a Trusted Alabama Real Estate Agent
An experienced Alabama agent can help you understand local tax rates, school districts, and development trends — and guide you toward neighborhoods that fit your lifestyle and budget.
HomeLight’s free Agent Match tool uses data from over 27 million transactions and thousands of verified reviews to match you with top Alabama agents based on proven performance. Tell us a little about your buying plans and get matched today with no obligation.
Additional resources when searching for a trusted buyer’s agent in Alabama:
Buying and Selling? Consider “Buy Before You Sell”
If you’re buying a new home in Alabama but need to sell your current property first, HomeLight’s Buy Before You Sell program can simplify the entire process. This modern solution helps you unlock equity from your current home so you can make a non-contingent offer on your new home — and only move once. Watch the short video below to see how it works.