Cottonwood, Alabama Property Taxes
The median property tax rate in Cottonwood, AL is 0.35%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With the median home value in Cottonwood, the typical annual property tax bill is $298, which is well below the national median of $2,690. Property taxes in Cottonwood are calculated based on the tax assessed value, which is often lower than the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Cottonwood's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to substantial annual savings. Whether you're in the heart of Cottonwood or another part of Houston County, grasping the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Cottonwood, 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 Cottonwood Property Tax Bill Calculator assists homeowners, real estate investors, and potential buyers in estimating their annual property taxes in Cottonwood with just two data points. By entering your property's estimated assessed value, the calculator uses the median tax rate in Cottonwood to provide an accurate estimate of your property tax bill. This valuable tool helps you understand your potential tax liabilities and make informed decisions. For those interested in more granular details, you can explore neighborhood-level trends by scrolling down. Your property’s assessed value is the value assigned by Houston County for property tax calculations, taking into account any applicable exemptions.
Property Tax Rates Across Cottonwood, Alabama
Property taxes in Cottonwood, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Cottonwood is 0.35%, significantly lower than both the Alabama state median and the U.S. national median of 0.99%. Local government entities within Cottonwood set these rates annually, and they can vary significantly across different neighborhoods. Each year, Cottonwood 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 these rates are determined helps homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Cottonwood Tax Rate
0.35%
Average Houston County Tax Rate
0.36%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Cottonwood, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36320 | 0.25% | 0.30% | 0.35% | 0.69% | 0.79% |
Source: Ownwell
Property Tax Assessment Values Across Cottonwood, Alabama
In Cottonwood, 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 Houston 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 Cottonwood, 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 Cottonwood helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The median home price in Cottonwood is $77,550, with median tax bills ranging from $147 at the 25th percentile to $805 at the 90th percentile.
Average Cottonwood Assessed Value
$77,550
Average Houston County Assessed Value
$117,800
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Cottonwood, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36320 | $17,100 | $37,175 | $77,550 | $136,950 | $214,660 |
Source: Ownwell
Property Tax Bills Across Cottonwood, Alabama
In Cottonwood, located in Houston County, AL, property tax bills are calculated based on the assessed value of a home. The county assesses properties at a percentage of their market value, which is then multiplied by the local tax rate to determine the tax bill. For instance, with the median home price at $77,550, homeowners might expect a range of tax bills. The 25th percentile tax bill is around $147, while the 75th percentile reaches $526, and the 90th percentile can be as high as $805. Several factors influence these amounts, including property size, location, and any applicable exemptions or deductions. Compared to the national median property tax rate of 0.99%, Cottonwood's tax bills can be relatively modest, especially given the highest and lowest median tax bill in the area both standing at $298 in the 36320 zip code. These tax bills significantly impact homeowners, affecting their annual budgets and the overall affordability of owning property in Cottonwood.
Average Cottonwood Tax Bill
$298
Average Houston County Tax Bill
$515
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Cottonwood, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36320 | $66 | $147 | $298 | $526 | $805 |
Source: Ownwell