Property taxes can significantly drive up your real estate costs. Therefore, you want to explore those prices before you commit to purchasing a home. Alabama is a terrific state for low property taxes. And if you really want to save your money, you’ll obviously want to look at the counties with the lowest property taxes in Alabama.
Alabama Has Low Property Taxes
According to AL.com, Alabama has the second-lowest property taxes in all of the United States. The only state with lower property taxes is, interestingly, Hawaii. Therefore, if you want to reduce your real estate costs, a move to Alabama could be a smart choice.
Forbes analyzed property taxes in 220 metropolitan areas. 3 of the 5 lowest were in Alabama: Daphne, Montgomery, and Tuscaloosa. None of the five highest were in Alabama. Forbes says that Alabama’s effective property tax is 0.48 percent. They confirm that Hawaii is the only state with lower rates.
The Alabama Real Estate Journal confirms that 0.49% average tax rate. Moreover they note that the average homeowner in the state’s metro areas paid $838 per year. Compare that with the average across the nation which was $3498. Obviously, it’s a lot cheaper in Alabama!
Highest and Lowest Property Taxes in Alabama
Of course, each county differs from the others in terms of property tax rates. AL.com reports that in the most expensive areas, people pay about $1400 for their property taxes. However, in Clarke County, which has the lowest property taxes in Alabama, the average bill is just over $200. Therefore, you can expect a range of $200 – $1400 in Alabama property taxes depending on where you live.
20 Counties With The Lowest Property Taxes in Alabama
As mentioned, Clarke County has the lowest rates. The property tax there is just .16%. On average, property owners pay about $209 per bill. AL.com has also listed out 19 other counties that offer the lowest property taxes in Alabama.
Of these, two tie for the highest of the lowest. Geneva County and Hale County both have average tax bills of $371. Therefore, even though there are pricier counties where you might pay as much as $1400, you can see that there are least 20 Alabama counties where you’ll pay between $200 and $400.
The other 17 counties in the top 20 for lowest property taxes in the state are:
- Covington County
- Perry County
- Franklin County
- Walker County
- Greene County
- Butler County
- Crenshaw County
- Clay County
- Conecuh County
- Sumter County
- Monroe County
- Dallas County
- Marion County
- Bibb County
- Fayette County
- Lamar County
- Choctaw County
Their tax rates range from $230 – $369 per year. The lowest rates are at the bottom of the list above. In contrast, those counties at the top of the list are closer to that $369 rate.
Alabama Counties With Higher Property Taxes
Just like in most other states, certain counties have higher property taxes than others. Urban / metro areas tend to be pricier than rural areas, for example. According to Alabama Real Estate Journal, the ten Alabama counties with the highest property taxes are:
- Jefferson County is the most expensive. That’s the one that is around, or a little above, $1400 per year.
- Lee County and Shelby County are both above $1000 per year.
- Tallapoosa, Tuscaloosa, Baldwin, and Madison counties are between $800 and $1000 per year.
- Russell, Mobile, and Limestone Counties are between $600 and $700 per year.
Alabama has 67 counties in total. As you can see, ten of them have property taxes above $600 per year. In contrast, twenty of them have rates below $400 per year. Obviously, the rest are in the middle. Therefore, you can find reasonable property tax rates all across the state.
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