Montgomery, Alabama Property Taxes
The median property tax rate in Montgomery, AL is 0.40%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With the median home value in Montgomery, the typical annual property tax bill reaches $10,450, which is substantially higher than the national median of $2,690. Property taxes in Montgomery 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 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, understanding 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
$1,500,000
$3,000,000
Average Tax Rate
0.4%
Estimate Property Tax Bill
$10,493
$9,737
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 such as public schools, road maintenance, and emergency services. The median tax rate in Montgomery is 0.40%, which is significantly lower than the national median of 0.99%. Local government entities within 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. Understanding how Montgomery's effective property tax rate compares to other areas provides valuable insights into the varying tax landscape across Elmore County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Montgomery Tax Rate
0.40%
Average Elmore County Tax Rate
0.32%
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 |
|---|---|---|---|---|---|
| 36117 | 0.40% | 0.40% | 0.40% | 0.40% | 0.40% |
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 Elmore 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. 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. The median home price in Montgomery is $262,323, with the highest and lowest median tax bills both found in the 36117 zip code, amounting to $10,450.
Average Montgomery Assessed Value
$2,623,230
Average Elmore County Assessed Value
$185,990
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 |
|---|---|---|---|---|---|
| 36117 | $2,623,230 | $2,623,230 | $2,623,230 | $2,623,230 | $2,623,230 |
Source: Ownwell
Property Tax Bills Across Montgomery, Alabama
In Montgomery, located in Elmore County, AL, property tax bills are determined based on the assessed value of a property. The assessed value is typically a percentage of the market value, which is determined by local tax assessors. The tax rate is then applied to this assessed value to calculate the tax bill. For homeowners in Montgomery, the median home price is $2,623,230, which significantly influences the overall tax bill. Factors such as property size, location, and improvements can also impact the assessed value and, consequently, the tax bill. Homeowners in Montgomery can expect their tax bills to vary, with the 25th, 75th, and 90th percentiles all reporting a tax bill of $10,450. This uniformity suggests a stable tax environment, but it is notably higher than the national median property tax rate of 0.99%. Understanding these factors can help homeowners better anticipate their financial obligations and plan accordingly.
Average Montgomery Tax Bill
$10,450
Average Elmore County Tax Bill
$602
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 |
|---|---|---|---|---|---|
| 36117 | $10,450 | $10,450 | $10,450 | $10,450 | $10,450 |
Source: Ownwell