Pennington, Alabama Property Taxes
The median property tax rate in Pennington, AL is 0.28%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With the median home value in Pennington at $39,950, the typical annual property tax bill is $92, which is far below the national median of $2,690. Property taxes in Pennington are calculated based on the tax assessed value, which often falls below the market value due to various exemptions such as those for primary residences and agricultural properties. Understanding Pennington'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 Pennington or another part of Choctaw County, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Pennington, 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 Pennington Property Tax Bill Calculator is an indispensable tool for homeowners, real estate investors, or potential buyers aiming to estimate their annual property taxes in Pennington. By inputting your property's estimated assessed value, the calculator uses the median tax rate in Pennington to provide an accurate estimate of your property tax bill. This valuable tool offers clear insights into potential tax liabilities, helping you make informed financial decisions. For those interested in more granular trends, scroll down to explore detailed neighborhood-level information. Remember, your property’s assessed value is determined by the county and includes any applicable exemptions, ensuring you get a precise calculation for your tax planning needs.
Property Tax Rates Across Pennington, Alabama
Property taxes in Pennington, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Pennington is 0.28%, significantly lower than both the Alabama state median of 0.33% and the U.S. national median of 0.99%. Local government entities within Pennington set these rates annually, and they can vary significantly across different neighborhoods. Each year, Pennington 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 Pennington's effective property tax rate to other counties in Alabama and the national median. For comparison, the highest median property tax rate in Alabama is 0.66%, while the lowest median tax rate is 0.14%. Understanding how these cities compare with Pennington 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 Pennington Tax Rate
0.28%
Average Choctaw County Tax Rate
0.29%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Pennington, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36916 | 0.14% | 0.17% | 0.28% | 0.36% | 0.37% |
Source: Ownwell
Property Tax Assessment Values Across Pennington, Alabama
In Pennington, 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 local 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 Pennington, 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. For example, the median home price in Pennington is $39,950, with tax bills ranging from $47 at the 25th percentile to $301 at the 90th percentile. Being aware of these valuation processes helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Pennington Assessed Value
$39,950
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 Pennington, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36916 | $12,570 | $21,850 | $39,950 | $65,620 | $111,576 |
Source: Ownwell
Property Tax Bills Across Pennington, Alabama
In Pennington, Choctaw County, 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 Pennington is $39,950. Property tax rates are applied to this assessed value to determine the annual tax bill. For instance, homeowners in the 25th percentile can expect a tax bill of around $47, while those in the 75th percentile might see a bill closer to $194. At the higher end, in the 90th percentile, the tax bill can reach up to $301. These property taxes are crucial as they fund local services such as schools, public safety, and infrastructure. Homeowners must consider these costs when budgeting for homeownership, as they can significantly influence monthly expenses. Compared to the national median property tax rate of 0.99%, Pennington's property tax rates offer a relatively lower financial burden, making it an attractive option for those looking to minimize their tax expenses.
Average Pennington Tax Bill
$92
Average Choctaw County Tax Bill
$120
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Pennington, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36916 | $22 | $47 | $92 | $194 | $301 |
Source: Ownwell