Alabama has no single statewide property tax rate. Your bill is the appraised value, times a classification percentage, times the millage that your county, school district and city levy, less any homestead exemption.
This guide walks through that formula using the Alabama Department of Revenue's own pages and its October 2025 county millage tables, then adds two worked examples of our own: a bill for a $250,000 home and the effect of the 7% cap. Where the department says a rule is set locally, we say so rather than guess.
The Department of Revenue states the formula as: "Appraised Value x Property Classification = Assessed Value." The assessed value is then multiplied by the millage rate for where you live, and exemptions are subtracted. Taxable real and personal property, other than public utility property, is assessed locally by the county assessing official.
| Class | Property | 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 building and sites | 10% |
| IV | Private passenger automobiles and pickup trucks owned and operated by an individual for personal use | 15% |
A mill is one-tenth of one cent, so 10 mills is one penny per dollar of assessed value. The Department's own example: $100,000 appraised at the 10% residential rate is $10,000 assessed, and at 32.5 mills that is $325. The Department also notes that it makes no assertions as to the accuracy of the millage rate information it posts, so confirm your rate with the county.
Millage is not set by the state revenue department: it is determined by the county commissions and other taxing agencies. The Department publishes a table for each of the 67 counties each year. In the October 2025 tables, the total state millage is 6.5 mills in every county (public school 3.0, soldier 1.0, general fund 2.5 in the Autauga table). Everything else is county, school-district and municipal millage, which differs by where the parcel sits.
| Autauga County, October 2025 (one example) | Mills |
|---|---|
| State | 6.5 |
| County, outside Prattville | 10.5 |
| School, District 1 (county-wide 4.0 plus district 6.0) | 10.0 |
| Municipal levy | depends on the city (none assumed here) |
| Our sum for a parcel outside Prattville, in School District 1, with no municipal levy | 27.0 |
The 2026 tables had not appeared on the Department's millage list when we read it (the list ran 2021 to 2025), so find your current rate through the county office. Some county tables also list flat charges on top of millage, such as a $3.00 per-parcel fee in the Barbour and Bibb tables and a Barbour fire fee, so a millage-only calculation can understate a bill.
Our worked example uses the Autauga line items above, so it is an illustration and not a quote for any real parcel.
| Step (our arithmetic) | Amount |
|---|---|
| Appraised value | $250,000 |
| Assessed value at 10% (Class III) | $25,000 |
| Millage (6.5 state + 10.5 county + 10.0 school) | 27.0 mills (0.027) |
| Unadjusted tax bill | $675.00 |
| Of which state portion (6.5 mills) | $162.50 |
| Saving from the H-1 state exemption ($4,000 assessed x 6.5 mills) | $26.00 |
The county, school and city exemptions differ by taxing authority, so we have not tried to net them out; the Department says counties, municipalities or other taxing authorities may grant a homestead exemption up to $4,000 in assessed value.
The Department defines a homestead as a single-family owner-occupied dwelling and the land with it, not exceeding 160 acres. You must own the home and occupy it as your primary residence on the first day of the tax year, and you apply at your county office. The Department lists these homestead types:
| Type | Who | What the Department says |
|---|---|---|
| H-1 | Under 65 and not disabled | $4,000 assessed value state and $2,000 assessed value county |
| H-2 | 65 or older with annual adjusted gross income under $12,000 on the latest state return, or retired due to permanent and total disability (any age) | Exempt from all of the state portion and $5,000 of assessed value on the county portion, including school district taxes |
| H-3 (age) | 65 or older with net taxable income of $12,000 or less on the combined federal return | Exempt from all ad valorem taxes |
| H-3 (disabled) | Permanently and totally disabled, no income limit | Exempt from all ad valorem taxes |
| H-4 | 65 or older with income over $12,000 on the latest Alabama return | Exempt from all of the state portion, plus the regular $2,000 assessed value county exemption |
Income tests and eligibility memos are updated by the Department (it links 2025 memoranda), so check the current memo and your county office before relying on a threshold.
Act 2024-344 (HB73) limits the yearly increase in the taxable assessed value of Class II and Class III real property to 7 percent. The base year was 1 October 2024, for tax collections beginning 1 October 2025. If the cap applies, the taxable assessed value is set to 1.07 times the prior year's taxable assessed value, rounded to the nearest $20 increment that does not exceed the cap, and if the true assessed value is lower, the taxable value aligns with it. No application is needed. The cap only limits increases in assessed value, not decreases.
The Department says the cap is removed (the property is reassessed at its full true assessed value) when the property is in a tax increment district, its classification changes (for example residential to commercial), it changes ownership (but not between spouses or family members for no or nominal consideration, or because of the owner's death), it has never been assessed, or a new improvement or significant improvement is made. Any new improvement, regardless of size, excludes the whole parcel. Buyers should not assume the seller's tax bill will carry over, because a change of ownership resets the taxable value to the true assessed value.
| Our illustration (27.0 mills) | Taxable assessed value | Tax |
|---|---|---|
| Prior year taxable assessed value | $25,000 | $675.00 |
| Market value rises to $280,000 (true assessed $28,000), uncapped | $28,000 | $756.00 |
| Same, with the 7% cap (1.07 x $25,000 = $26,750, rounded down to $26,740) | $26,740 | $721.98 |
The Department states the limitations continue through the fiscal year beginning 1 October 2027, so the cap is scheduled to end after that unless the legislature acts; we found no confirmed extension when we searched in November 2026.
The lien date for taxes is 1 October and taxes become due the following 1 October. The Department states that property taxes become due and payable each year on 1 October and are considered delinquent if paid after 31 December.
If you disagree with your valuation, the Department says you may file a written protest with the County Board of Equalization, and that owners have 30 days to file an appeal after receiving written notice of valuation. It cites Code of Alabama sections 40-3-20, 40-3-24 and 40-3-25 for the appeals process, and says a taxpayer who disagrees with the Board's decision can appeal to circuit court. Act promptly and confirm the exact deadline on your notice. The Board hears disputes about market value; the 7% cap affects the assessed value, so a lower market value does not always lower your bill straight away.
Class III includes agricultural and forest property, and owners can have farm and timberland valued at current use value instead of market value. The use is measured as it is on 1 October of the tax year. Eligible Class III property includes agricultural and forest land, an owner's single-family dwelling used exclusively by the owner, and certain historic buildings and sites.
You apply to the county assessing official between 1 October and 1 January. Once granted, you do not repeat the application, but a new owner must apply in the same window or the property is valued at market value. Rollback: if the property is converted to a use that does not qualify, or is converted within two years after a sale, additional taxes are calculated for the three preceding years, using the greater of the sales price or market value at the 10 percent Class III ratio.