Addison, Alabama Property Taxes
The median property tax rate in Addison, Alabama is 0.32%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With a median home value of $88,600 in Addison, the typical annual property tax bill is $281, well below the national median of $2,690. Property taxes in Addison are calculated based on the tax assessed value, which often falls below the market value due to various exemptions such as those for primary residences and agricultural properties. Understanding Addison'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 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
0.32%
Estimate Property Tax Bill
$284
$263
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 0.32%, 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. For comparison, the highest median property tax rate in Alabama is found in zip code 35203 with a rate of 0.66%, while the lowest median tax rate is in zip code 35005 at 0.33%. Understanding how these cities compare with Addison provides valuable insights into the varying tax landscape across Lawrence County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Addison Tax Rate
0.32%
Average Lawrence County Tax Rate
0.30%
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 | 0.26% | 0.28% | 0.32% | 0.42% | 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 Lawrence 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. For instance, the zip code 35540 has the highest and lowest median tax bill at $281. 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
$88,600
Average Lawrence County Assessed Value
$132,500
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 | $63,880 | $73,150 | $88,600 | $131,650 | $157,480 |
Source: Ownwell
Property Tax Bills Across Addison, Alabama
In Addison, property tax bills are calculated by multiplying the assessed value of a home by the local tax rate set by Lawrence County. The assessed value is typically a percentage of the home's market value, which is determined by the county assessor. In Addison, the median home price is $88,600. Factors such as property location, size, and improvements can influence the assessed value, and thus the tax bill. Homeowners in Addison experience varying tax bills. For example, the tax bill for the 25th percentile is $213, while the 75th percentile sees a tax bill of $594. At the 90th percentile, the tax bill reaches $783. Comparatively, the highest and lowest median tax bills in the county are both $281, indicating some uniformity in the region. These property taxes can significantly impact homeowners, influencing their annual budgets and the overall cost of homeownership. With the national median property tax rate at 0.99%, Addison's rates offer a relatively moderate financial obligation for its residents.
Average Addison Tax Bill
$281
Average Lawrence County Tax Bill
$474
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 | $172 | $213 | $281 | $594 | $783 |
Source: Ownwell