Calculating Your Taxes - Real Estate Taxes in Alabama

Calculating Your Taxes

Alabama Department of Revenue
Sarah G. Spear Revenue Commissioner
P. O. Box 1667
Montgomery, AL
Ph: (334) 832-1250
Fax: (334) 832-1644
Email: revenuecommissioner@mc-ala.org

In the State of Alabama, property tax is based on three factors:

1. Property Classification
2. Millage Rate
3. Exemptions

Property Classification

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.

Appraised Value X Property Classification = Assessed Value

For more information regarding property classification, view Classes of Property.

Millage Rate

Once the Assessed Value of your property has been determined, multiply it by the appropriate Millage Rate for the area in which you live. Millage is the tax rate expressed in decimal form. Millage rates are determined by the county commissions and other taxing agencies.

A mill is one-tenth of one cent. (.001)

1 mill = $0.001

10 mills = one penny or $0.01

100 mills = ten cents or $0.10

1000 mills = one dollar or $1

Assessed Value X Millage Rate = Unadjusted Tax Bill

For example:

$100,000 (Appraised Value) X (Residential Rate: 10%) =$10,000 (Assessed Value)

$10,000 (Assessed Value) X .0325 (County Millage Rate of 32.5 mills) = $325.00 (Tax Amount)

To calculate your current millage rate, view Millage Rates.

Please note: The Property Tax Division takes no responsibility for and makes no assertions as to the accuracy of the millage rate information.

Exemptions

After determining your Unadjusted Tax Bill, subtract any Exemptions you might have. This gives you the Adjusted Tax Bill.

A homestead exemption is defined as a single-family owner-occupied dwelling and the land thereto, not exceeding 160 acres. The property owner may be entitled to a homestead exemption if he or she owns a single-family residence and occupies it as their primary residence on the first day of the tax year for which they are applying. There are four different types of exemptions a home owner can claim in the State of Alabama. Please visit your local county office to apply for a homestead exemption.

Unadjusted Tax Bill - Exemptions = Adjusted Tax Bill

Classes of Property

Class Description Assessment Percent
I All property of utilities used in the business
of such utilities 30%
II All property not otherwise classified 20%
III All agricultural, forest and single family, owner occupied
residential property, including owner occupied residential
manufactured homes located on land owned by the manufactured
home owner, and historic buildings and sites 10%
IV All private passenger automobiles and motor trucks of the
type commonly known as "pickups" or "pickup trucks" owned
and operated by an individual for personal or private use
and not for hire, rent, or compensation 15%