Montgomery, Alabama Property Taxes
The median property tax rate in Montgomery, AL is 0.48%, slightly higher than the state median of 0.47% but lower than the national median of 0.99%. With a median home value of $122,550, the typical annual property tax bill in Montgomery amounts to $748, which is significantly below the national median of $2,690. Property taxes in Montgomery are determined based on the tax assessed value, often lower than the market value due to exemptions like those for primary residences and agricultural properties. Understanding Montgomery'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 Montgomery or another part of the city, comprehending the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Montgomery, 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 Montgomery Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Montgomery with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Montgomery 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 Montgomery, Alabama
Property taxes in Montgomery, Alabama, play a crucial role in funding essential local services like public schools, road maintenance, and emergency services. The median tax rate in Montgomery is 0.48%, which is significantly lower than the U.S. national median of 0.99%. Local government entities in Montgomery set these rates annually, and they can vary significantly across different neighborhoods. Each year, Montgomery 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 Montgomery's effective property tax rate to other areas in Alabama and the national median. For comparison, the 36104 zip code has the highest median property tax rate of 0.98%, while the 36109 zip code has the lowest median tax rate of 0.47%. Understanding how these areas compare with Montgomery provides valuable insights into the varying tax landscape across Montgomery County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Montgomery Tax Rate
0.48%
Average Montgomery County Tax Rate
0.48%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Montgomery, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36104 | 0.43% | 0.50% | 0.98% | 1.01% | 1.08% |
| 36105 | 0.40% | 0.41% | 0.98% | 0.99% | 1.01% |
| 36106 | 0.42% | 0.47% | 0.47% | 0.97% | 0.98% |
| 36107 | 0.43% | 0.46% | 0.98% | 0.98% | 0.99% |
| 36108 | 0.40% | 0.44% | 0.97% | 0.99% | 1.01% |
| 36109 | 0.42% | 0.46% | 0.47% | 0.98% | 0.98% |
| 36110 | 0.41% | 0.44% | 0.98% | 0.99% | 1.01% |
| 36111 | 0.42% | 0.46% | 0.47% | 0.98% | 0.98% |
| 36113 | N/A | N/A | N/A | N/A | N/A |
| 36114 | 0.39% | 0.39% | 0.39% | 0.39% | 0.39% |
| 36116 | 0.43% | 0.46% | 0.47% | 0.98% | 0.98% |
| 36117 | 0.42% | 0.47% | 0.47% | 0.49% | 0.97% |
Source: Ownwell
Property Tax Assessment Values Across Montgomery, Alabama
In Montgomery, 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 Montgomery 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 Montgomery, 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. The median home price in Montgomery is $122,550, with tax bills ranging from $411 at the 25th percentile to $1,851 at the 90th percentile. The highest median tax bill is $1,200 in the 36117 zip code, while the lowest is $267 in the 36104 zip code. 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 Montgomery helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Montgomery Assessed Value
$122,550
Average Montgomery County Assessed Value
$131,500
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Montgomery, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36104 | $3,600 | $10,300 | $30,000 | $88,775 | $201,540 |
| 36105 | $14,700 | $22,500 | $35,800 | $75,800 | $175,420 |
| 36106 | $76,290 | $140,300 | $181,700 | $241,350 | $350,100 |
| 36107 | $24,880 | $37,475 | $56,900 | $81,500 | $108,420 |
| 36108 | $9,600 | $21,100 | $56,000 | $79,800 | $112,340 |
| 36109 | $79,400 | $99,500 | $133,300 | $174,825 | $223,200 |
| 36110 | $13,100 | $25,000 | $41,600 | $58,875 | $93,710 |
| 36111 | $58,560 | $79,700 | $143,800 | $225,900 | $393,080 |
| 36113 | N/A | N/A | N/A | N/A | N/A |
| 36114 | $251,400 | $251,400 | $251,400 | $251,400 | $251,400 |
| 36116 | $64,100 | $88,400 | $120,900 | $188,900 | $329,600 |
| 36117 | $115,200 | $159,400 | $224,750 | $307,400 | $429,540 |
Source: Ownwell
Property Tax Bills Across Montgomery, Alabama
In Montgomery, AL, property tax bills are calculated based on the assessed value of a home, which is a percentage of its market value. The median home price in the area is $122,550. Once the assessed value is determined, the local tax rate is applied to calculate the tax bill. This rate is influenced by various factors, including local government budgets and voter-approved measures. For homeowners in Montgomery, property tax bills can vary significantly. The 25th percentile tax bill is $411, while the 75th percentile reaches $1,212, and the 90th percentile can be as high as $1,851. The highest median tax bill in the area is $1,200, found in the 36117 zip code, whereas the lowest median tax bill is $267 in the 36104 zip code. These property taxes fund essential public services like schools, infrastructure, and emergency services, directly impacting the community's quality of life. Homeowners must stay informed about their property tax assessments to ensure they are fair and accurate.
Average Montgomery Tax Bill
$748
Average Montgomery County Tax Bill
$782
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Montgomery, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36104 | $43 | $101 | $267 | $706 | $1,435 |
| 36105 | $97 | $162 | $280 | $514 | $1,011 |
| 36106 | $486 | $739 | $996 | $1,490 | $2,100 |
| 36107 | $179 | $285 | $426 | $660 | $923 |
| 36108 | $74 | $153 | $304 | $523 | $769 |
| 36109 | $437 | $586 | $807 | $1,097 | $1,475 |
| 36110 | $108 | $185 | $304 | $456 | $632 |
| 36111 | $335 | $559 | $821 | $1,412 | $2,206 |
| 36113 | N/A | N/A | N/A | N/A | N/A |
| 36114 | $980 | $980 | $980 | $980 | $980 |
| 36116 | $367 | $484 | $741 | $1,149 | $1,848 |
| 36117 | $621 | $843 | $1,200 | $1,716 | $2,465 |
Source: Ownwell