Dothan, Alabama Property Taxes
The median property tax rate in Dothan, AL is 0.36%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With a median home value of $124,200 in Dothan, the typical annual property tax bill amounts to $551, well below the national median of $2,690. Property taxes in Dothan are calculated based on the tax assessed value, which is often less than 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 substantial 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
$1,500,000
$3,000,000
Average Tax Rate
0.36%
Estimate Property Tax Bill
$447
$415
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, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Dothan is 0.36%, notably lower than both the Alabama state median and 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 36302 zip code has the highest median property tax rate of 0.59%, while the same zip code also records the lowest median tax rate of 0.59%. Understanding how these areas compare with Dothan provides valuable insights into the varying tax landscape across Houston County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Dothan Tax Rate
0.36%
Average Houston County Tax Rate
0.36%
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 |
|---|---|---|---|---|---|
| 36301 | 0.30% | 0.34% | 0.37% | 0.80% | 0.82% |
| 36302 | 0.59% | 0.59% | 0.59% | 0.59% | 0.59% |
| 36303 | 0.30% | 0.34% | 0.37% | 0.77% | 0.84% |
| 36305 | 0.30% | 0.34% | 0.36% | 0.39% | 0.78% |
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 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. 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. For instance, in Dothan, the zip code with the highest median tax bill is 36305 at $752, while the lowest is 36302 at $148. Being aware of these valuation processes helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Dothan Assessed Value
$124,200
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 Dothan, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 36301 | $38,600 | $64,200 | $100,400 | $177,050 | $253,000 |
| 36302 | $25,000 | $25,000 | $25,000 | $25,000 | $25,000 |
| 36303 | $22,180 | $58,500 | $120,900 | $189,900 | $289,320 |
| 36305 | $75,230 | $130,500 | $185,450 | $278,475 | $406,600 |
Source: Ownwell
Property Tax Bills Across Dothan, Alabama
In Dothan, located in Houston County, AL, property tax bills are calculated based on the assessed value of the property, which is a percentage of the market value. The local tax rate is then applied to this assessed value to determine the annual tax bill. Factors such as the property's location, size, and condition can influence its assessed value. For instance, the median home price in Dothan is $124,200, and tax bills can vary significantly within the city. The 25th percentile tax bill is around $335, while the 75th percentile reaches $842. The highest median tax bill recorded in the 36305 zip code is $752, whereas the lowest in the 36302 zip code is $148. These property taxes fund essential public services like schools, infrastructure, and emergency services, directly impacting homeowners. Compared to the national median property tax rate of 0.99%, Dothan's property tax rates can be relatively modest, making it an attractive option for homeowners seeking lower tax burdens.
Average Dothan Tax Bill
$551
Average Houston County Tax Bill
$515
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 |
|---|---|---|---|---|---|
| 36301 | $192 | $312 | $509 | $738 | $1,053 |
| 36302 | $148 | $148 | $148 | $148 | $148 |
| 36303 | $138 | $293 | $519 | $821 | $1,231 |
| 36305 | $340 | $509 | $752 | $1,137 | $1,680 |
Source: Ownwell