Alabama property taxes are among the lowest in the country — but the calculation is not intuitive. Properties are assessed at a fraction of market value, millage rates vary by municipality, and the homestead exemption meaningfully reduces the bill for owner-occupied homes. This estimator runs the math for Baldwin and Mobile County so you know what to budget before closing.
How Alabama Property Taxes Work
Alabama uses a two-step calculation that confuses buyers from other states.
Step 1: Assessed Value Alabama does not tax the full market value of a property. Instead, it taxes a fraction — called the assessed value:
- Class III (owner-occupied residential): 10% of market value
- Class II (investment/non-owner-occupied): 20% of market value
A $350,000 owner-occupied home has an assessed value of $35,000. A $350,000 investment property has an assessed value of $70,000.
Step 2: Millage Rate The millage rate — expressed as dollars per $1,000 of assessed value — is applied to the net taxable assessed value. Millage includes state, county, school, and municipal levies stacked on top of each other. Rates vary by municipality within a county.
Homestead Exemption Owner-occupied primary residences qualify for the Alabama Homestead Exemption, which reduces the assessed value by $4,000 before the millage is applied. File with your county revenue commission by December 31 of the tax year you purchase — it is not automatic.
Homeowners 65 and older with gross income under $12,000 annually may qualify for an additional $12,000 exemption on the state portion of the tax. Verify current income limits and eligibility at your county revenue commission.
Effective Rate Because of the low assessment fraction, Alabama’s effective property tax rate is one of the lowest in the country. A $350,000 owner-occupied home in an area with 38 mills pays roughly $1,180/year — compared to $5,000–$10,000+ for the same home value in many other states.
Verify Before You Close
The millage rates in this estimator are approximate and updated periodically. For the exact current tax bill on a specific property:
- Baldwin County Revenue Commission: baldwincountyal.gov
- Mobile County Revenue Commission: mobilecounty.org/revenuecommission
You can search by parcel number or address to see the current assessed value and tax history on any property before you make an offer.
Resources
- Mortgage Payment Calculator — add your tax estimate to a full PITI payment
- Closing Cost Estimator — understand all costs at closing
- Home Affordability Calculator — see how taxes affect your buying power
Questions about property taxes on a specific home?
I can pull the current tax record on any property in Baldwin or Mobile County — assessed value, tax history, and homestead exemption status — before you make an offer. Get in touch with the address.
Get in Touch →Millage rates are approximate and subject to change by county and municipal governing bodies. Assessed values are set by the county tax assessor and may differ from purchase price. This estimator is for planning purposes only — verify actual tax obligations with the applicable county revenue commission.
Milton Christ, REALTOR® | naf Cash Certified | Keller Williams Alabama Gulf Coast | AL License #172097
