Banks, Alabama Property Taxes
The median property tax rate in Banks, Alabama is 0.59%, which is lower than the national median of 0.99% but higher than the Alabama state median of 0.47%. With a median home value of $50,800 in Banks, the typical annual property tax bill is around $215, significantly below the national median of $2,690. Property taxes in Banks are calculated based on the tax assessed value, which often falls below the market value due to various exemptions such as primary residence and agricultural exemptions. By understanding Banks' property tax system, exploring available exemptions, and identifying opportunities for reductions, homeowners and real estate investors can achieve substantial annual savings. Whether residing in the heart of Banks or other parts of Barbour County, a thorough understanding of the local property tax system is essential for financial planning and investment strategies.
Last Updated June 14, 2024
Banks, 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 BANKS Property Tax Bill Calculator assists homeowners, real estate investors, and potential buyers in estimating their annual property taxes in BANKS using just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in BANKS to estimate your property tax bill. This valuable 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 Banks, Alabama
Property taxes in Banks, Alabama, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Banks is 0.59%, lower than both the Alabama state median and the U.S. national median of 0.99%. Local government entities within Banks set these rates annually, and they can vary significantly across different neighborhoods. Each year, Banks 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 Banks' effective property tax rate to other counties in Alabama and the national median. For comparison, the 36005 zip code has both the highest and lowest median property tax rate of 0.59%. Understanding how these cities compare with Banks provides valuable insights into the varying tax landscape across Barbour County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Banks Tax Rate
0.59%
Average Barbour County Tax Rate
0.40%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Banks, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36005 | 0.18% | 0.27% | 0.59% | 0.59% | 0.59% |
Source: Ownwell
Property Tax Assessment Values Across Banks, Alabama
In Banks, 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 Barbour 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 Banks, 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 Banks helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The highest and lowest median tax bills in the area are both $215.00, occurring in zip code 36005.
Average Banks Assessed Value
$50,800
Average Barbour County Assessed Value
$82,600
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Banks, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36005 | $12,420 | $37,950 | $50,800 | $60,450 | $141,750 |
Source: Ownwell
Property Tax Bills Across Banks, Alabama
In Banks, located in Barbour 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 Banks is $50,800, and property taxes are determined by applying the local tax rate to this assessed value. Several factors influence the final tax bill, including property size, location, and any applicable exemptions. Homeowners in Banks typically see a range of tax bills. For instance, the 25th percentile tax bill is $94, while the 75th percentile tax bill is $357, and the 90th percentile tax bill reaches $410. Despite these variations, the median property tax bill stands at $215, which is considerably lower than the national median property tax rate of 0.99%. This relatively low tax burden can make homeownership more affordable in Banks, offering residents financial relief compared to higher-taxed areas. However, it's essential for homeowners to stay informed about their property's assessed value and any potential changes in local tax rates.
Average Banks Tax Bill
$215
Average Barbour County Tax Bill
$360
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Banks, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36005 | $73 | $94 | $215 | $357 | $410 |
Source: Ownwell