Everything to Know About Madison County Alabama Property Taxes (2022)
Looking to buy a house in Madison County Alabama? I’m sure you are curious about local property taxes then! Don’t worry you’ve come to the perfect place in this article we will cover everything there is to know about property taxes locally. Here in Alabama we use the millage tax rate system for our property taxes and it is so amazing that we are second only to Hawaii for the lowest tax rate in the country!
Here is all we will be covering:
Let’s Dive In!
What is the Millage Rate Pre Area
(Huntsville, Triana, Gurley, Ownens Cross Roads, and New Hope)
Now that you know you have some super low property taxes to look forward to it’s time to dig a little deeper into each area and their respective millage rates. In the image below you will see each area with their specific rate.
So, I am sure you noticed that the rates for Madison and Triana are slightly higher then the rest. I know super odd at first right? I mean Huntsville AL is the main place you hear about in Madison County! Well, because I am a (rockstar) local realtor I can not comment on the neighborhoods or local schools (as per the Fair Housing Act)…But, I can tell you that these places have a higher rate because Madison schools (35757, 35756, and 35758 zip codes) are highly ranked and sought after. Where as the rates for New Hope, Gurley, and Ownens Cross Roads are lower because they are further out from the city.
How to Calculate your Property Taxes
Now that you know the Millage Rate for your area it’s time for the fun part… MATH. Just kidding but, honestly this part is super easy you will feel like a property tax genius in no time! See the image below for the equation.
You can also go to the county’s website and use their calculator! Just click HERE
Everything About the Homestead Exemption
Now that you have an estimate for how much your property taxes will be it’s time to see how you can pay even LESS!
A Homestead Exemption is available for all “Homesteads” aka a single-family owner-occupied dwelling not exceeding 160 acres. So if your looking at a normal residential home purchase odds are your good…Sorry, no mega farms apply. Now that you know buying your residential home qualifies it’s time to make sure you get it and how much you will get!
How to Get it:
Close on your new house!
Change your Drivers License to match the NEW address. (only need one person to do this)
Grab your deed and a utility bill. (the utility bill is not needed but it helps to have it)
Go to the courthouse. (with everything from steps 2 and 3)
File for your Homestead Exemption!
How much will you get off your Property Taxes?
Homestead Exemption 1 is equal to $4,000 of the assessed value in state taxes as well as $2,000 of the assessed value for county taxes.
Homestead Exemption 2 is equal to all state and county taxes up to $5,000 in assessed value. It is available if the homeowner is legally blind (“20/200”) or ages 65 or older with a $12,000 or less annual adjusted gross income as reflected on their most recent State Income Tax Return. You can also qualify (regardless of age) if you are retired due to permanent and total disability. If claiming this based on disability, proof must be submitted. (I have a client who pays ZERO in property taxes!)
Homestead Exemption 3 will exempt you from all ad valorem taxes. It is available if the homeowners are ages 65 or older with $12,000 or less in combined taxable income on their latest Federal Income Tax Return. It also applies if you are retired due to permanent and total disability. (You must prove disability.)
Homestead Exemption 4 is equal to $2,000 of the assessed value in county taxes and the state portion of ad valorem taxes. It is available if the homeowners are ages 65 or older with $12,000 or more in combined taxable income on their latest Federal Income Tax Return and $12,000 or more annual adjusted gross income as reflected on their most recent State Income Tax Return.
Exemption applications must be made by December 31 and any Exemptions granted based on age or disability must be granted annually.
More of a video person? I cover everything in this video as well!
Thanks so much for reading and I hope it helped you in your real estate journey! Feel free to reach out to me with ANY real estate questions or needs!
