Dothan, Alabama Property Taxes
The median property tax rate in Dothan, AL is 0.41%, considerably lower than both the national median of 0.99% and Alabama's state median of 0.47%. With the median home value in Dothan at $185,637, the typical annual property tax bill reaches $765, significantly below the national median of $2,690. Property taxes in Dothan 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 Dothan'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 Dothan 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
Dothan, 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 Dothan Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Dothan with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Dothan 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 Dothan, Alabama
Property taxes in Dothan, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Dothan is 0.41%, which is lower than the U.S. national median of 0.99%. Local government entities within Dothan set these rates annually, and they can vary significantly across different neighborhoods. Each year, Dothan 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 Dothan's effective property tax rate to other counties in Alabama and the national median. For comparison, the zip code 36303 has the highest median property tax rate of 0.41%, while the same zip code also has the lowest median tax rate of 0.41%. Understanding how these cities compare with Dothan provides valuable insights into the varying tax landscape across Henry County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Dothan Tax Rate
0.41%
Average Henry County Tax Rate
0.37%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Dothan, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36303 | 0.26% | 0.35% | 0.41% | 0.72% | 0.75% |
Source: Ownwell
Property Tax Assessment Values Across Dothan, Alabama
In Dothan, 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 Henry 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 Dothan, 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 Dothan helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The median home price in Dothan is $185,637, with tax bills ranging from $535 at the 25th percentile to $1,233 at the 90th percentile. The highest and lowest median tax bills are both $765 in the 36303 zip code.
Average Dothan Assessed Value
$185,637
Average Henry County Assessed Value
$118,764
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Dothan, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36303 | $84,598 | $128,124 | $185,637 | $208,052 | $304,158 |
Source: Ownwell
Property Tax Bills Across Dothan, Alabama
In Dothan, located in Henry County, AL, property tax bills are calculated based on the assessed value of a home, which is determined by the local tax assessor. The assessed value is a percentage of the property's market value. For example, if the median home price is $185,637, the assessed value would be a fraction of that amount. Once the assessed value is established, the local tax rate is applied to calculate the annual tax bill. Several factors influence the final tax bill, including the home's location, size, and any applicable exemptions. In Dothan, the tax bill can vary significantly. For instance, homeowners in the 25th percentile pay around $535 annually, while those in the 75th percentile pay about $930. At the 90th percentile, the tax bill can reach up to $1,233. The highest median tax bill in the area is $765, specifically in the 36303 zip code. These property taxes directly impact homeowners by contributing to local services such as schools, infrastructure, and public safety.
Average Dothan Tax Bill
$765
Average Henry County Tax Bill
$519
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Dothan, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36303 | $422 | $535 | $765 | $930 | $1,233 |
Source: Ownwell