Addison, Alabama Property Taxes
The median property tax rate in Addison, AL is 0.22%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With the median home value in Addison, the typical annual property tax bill is $270, well below the national median of $2,690. Property taxes in Addison are calculated based on the assessed value, which often falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Addison'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 Addison 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
Addison, Alabama Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.22%
Estimate Property Tax Bill
$321
$297
Ownwell’s Addison Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Addison with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Addison 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 Addison, Alabama
Property taxes in Addison, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Addison is 0.22%, significantly lower than both the Alabama state median and the U.S. national median of 0.99%. Local government entities within Addison set these rates annually, and they can vary significantly across different neighborhoods. Each year, Addison 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 Addison's effective property tax rate to other counties in Alabama and the national median. Understanding how these cities compare with Addison provides valuable insights into the varying tax landscape across Cullman County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Addison Tax Rate
0.22%
Average Cullman County Tax Rate
0.25%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Addison, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35540 | 0.11% | 0.19% | 0.22% | 0.26% | 0.48% |
Source: Ownwell
Property Tax Assessment Values Across Addison, Alabama
Understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes in Addison, Alabama. 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 Cullman 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 Addison, 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. The median home price in Addison is $145,700, with tax bills ranging from $165 at the 25th percentile to $1,197 at the 90th percentile. The zip code with the highest and lowest median tax bill is 35540, both at $270. Being aware of these valuation processes helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Addison Assessed Value
$145,700
Average Cullman County Assessed Value
$169,500
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Addison, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35540 | $51,660 | $75,500 | $145,700 | $253,500 | $475,800 |
Source: Ownwell
Property Tax Bills Across Addison, Alabama
In Addison, located in Cullman County, AL, property tax bills are calculated based on the assessed value of a home, which is a percentage of its market value. The local tax rate is then applied to this assessed value. For instance, with a median home price of $145,700, homeowners can expect varying tax bills depending on their property's assessed value and applicable exemptions. Several factors contribute to the final tax bill, including the property's location within the county, any applicable exemptions, and local government budget needs. For example, the 25th percentile tax bill in Addison is $165, while the 75th percentile is $529, illustrating the range homeowners might encounter. At the higher end, the 90th percentile tax bill reaches $1,197. These taxes significantly impact homeowners by influencing annual housing costs. Compared to the national median property tax rate of 0.99%, Addison's property tax rates can provide a relatively affordable option for homeowners, allowing them to budget more effectively for other expenses.
Average Addison Tax Bill
$270
Average Cullman County Tax Bill
$503
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Addison, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35540 | $120 | $165 | $270 | $529 | $1,197 |
Source: Ownwell