The rate in context
On a $400,000 home, 0.37% means roughly $1,480 per year in property tax, escrowed monthly, so it lands directly in your payment and your debt-to-income ratio.
Exemptions and notes
Owner-occupied (Class III) property is assessed at just 10% of market value. A statewide homestead exemption plus added breaks for seniors and disabled veterans keep bills among the nation's lowest.
Sources: Tax Foundation 2026 (2024 ACS); NAR/NCSL transfer tax table. County-level rates vary; your county page has local detail.
Counties in Alabama
FAQ
What is the average property tax rate in Alabama?
The average effective property tax rate in Alabama is about 0.37%, per Tax Foundation 2026 (2024 ACS); NAR/NCSL transfer tax table. Individual counties vary above and below that average.
How do Alabama property taxes affect my mortgage?
Taxes are escrowed into your monthly payment, so a higher rate directly reduces how much house you qualify for. Owner-occupied (Class III) property is assessed at just 10% of market value. A statewide homestead exemption plus added breaks for seniors and disabled veterans keep bills among the nation's lowest.