Needham, Alabama Property Taxes
The median property tax rate in Needham, Alabama is 0.26%, considerably lower than both the national median of 0.99% and the Alabama state median of 0.47%. With the median home value in Needham, the typical annual property tax bill reaches $97, significantly below the national median of $2,690. Property taxes in Needham are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Needham'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 Needham 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
Needham, Alabama Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.26%
Estimate Property Tax Bill
$103
Ownwell’s Needham Property Tax Bill Calculator empowers homeowners, real estate investors, and potential buyers to estimate their annual property taxes in Needham with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Needham to provide an accurate estimate of your property tax bill. This insightful tool helps you understand potential tax liabilities, ensuring you are well-informed before making any financial decisions. 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 Needham, Alabama
Property taxes in Needham, Alabama, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Needham is 0.26%, significantly lower than both the Alabama state median and the U.S. national median of 0.99%. Local government entities within Needham set these rates annually, and they can vary significantly across different neighborhoods. Each year, Needham 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. Understanding how these cities compare with Needham provides valuable insights into the varying tax landscape across Choctaw County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Needham Tax Rate
0.26%
Average Choctaw County Tax Rate
0.29%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Needham, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36915 | 0.14% | 0.17% | 0.26% | 0.32% | 0.36% |
Source: Ownwell
Property Tax Assessment Values Across Needham, Alabama
In Needham, 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 Choctaw 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 Needham, 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 Needham helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The zip code with the highest tax bill in the area is 36915, with the 90th percentile tax bill at $322, while the lowest is also in 36915, with the 25th percentile tax bill at $46.
Average Needham Assessed Value
$39,670
Average Choctaw County Assessed Value
$48,430
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Needham, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36915 | $14,480 | $23,505 | $39,670 | $72,040 | $120,790 |
Source: Ownwell
Property Tax Bills Across Needham, Alabama
In Needham, Choctaw County, AL, property tax bills are calculated based on the assessed value of a home, which is typically a percentage of the market value. Homeowners in this region benefit from a relatively low property tax rate, especially when compared to the national median property tax rate of 0.99%. For instance, with a median home price of $39,670, the tax bill for homeowners can vary significantly. At the 25th percentile, the tax bill is around $46, which is quite affordable. However, at the 75th percentile, the tax bill rises to approximately $183, and at the 90th percentile, it can reach up to $322. These variations depend on factors such as the exact assessed value of the property and any applicable exemptions. This system ensures that property taxes are proportional to the home's value, providing a fair way to distribute the tax burden among homeowners. Lower property taxes can make homeownership more accessible and financially manageable for residents in Needham.
Average Needham Tax Bill
$97
Average Choctaw County Tax Bill
$120
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Needham, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36915 | $27 | $46 | $97 | $183 | $322 |
Source: Ownwell