Forest Home, Alabama Property Taxes
The median property tax rate in Forest Home, Alabama is 0.29%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With the median home value in Forest Home at $86,800, the typical annual property tax bill is $217, well below the national median of $2,690. Property taxes in Forest Home are calculated based on the tax assessed value, which often falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Forest Home's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Forest Home or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Forest Home, Alabama Property Tax Bill Calculator
$100,000
$2,500,000
$5,000,000
Average Tax Rate
0.47%
Estimate Property Tax Bill
$940
Ownwell’s Forest Home Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Forest Home with just two data points. By entering your property’s estimated assessed value, the calculator applies the median tax rate in Forest Home to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Forest Home, Alabama
Property taxes in Forest Home, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Forest Home is 0.29%, significantly lower than both the Alabama state median of 0.33% and the U.S. national median of 0.99%. Local government entities within Forest Home set these rates annually, and they can vary significantly across different neighborhoods. Each year, Forest Home estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Forest Home's effective property tax rate to other counties in Alabama and the national median. For comparison, the highest median property tax rate in the state is 0.66%, while the lowest median tax rate is 0.14%. Understanding how these cities compare with Forest Home provides valuable insights into the varying tax landscape across Butler County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Forest Home Tax Rate
0.29%
Average Butler County Tax Rate
0.30%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Forest Home, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36030 | 0.18% | 0.22% | 0.29% | 0.30% | 0.50% |
Source: Ownwell
Property Tax Assessment Values Across Forest Home, Alabama
In Forest Home, Alabama, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Butler County Appraisal District for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Forest Home, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Being aware of these valuation processes in Forest Home helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The zip code with the highest and lowest median tax bill is 36030, both valued at $217.
Average Forest Home Assessed Value
$86,800
Average Butler County Assessed Value
$82,900
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Forest Home, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36030 | $29,160 | $51,900 | $86,800 | $147,050 | $263,780 |
Source: Ownwell
Property Tax Bills Across Forest Home, Alabama
In Forest Home, property tax bills are determined by assessing the market value of a property and applying the local tax rate. Homeowners in Forest Home, located in Butler County, can expect their property tax bills to vary significantly based on several factors, including property value and exemptions. The median home price in this area is $86,800, with property tax bills ranging from $134 at the 25th percentile to $742 at the 90th percentile. The tax bill is calculated by multiplying the assessed value of the property by the local tax rate. This assessed value is typically a percentage of the property's market value. For instance, a property with a higher market value will generally incur a higher tax bill. Homeowners may also be eligible for various exemptions, which can lower their assessed value and, consequently, their tax bill. Compared to the national median property tax rate of 0.99%, the tax rates in Forest Home can provide some relief to homeowners. However, the variability in tax bills means that understanding these factors is crucial for accurate financial planning.
Average Forest Home Tax Bill
$217
Average Butler County Tax Bill
$283
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Forest Home, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36030 | $72 | $134 | $217 | $433 | $742 |
Source: Ownwell