Decatur, Alabama Property Taxes
The median property tax rate in Decatur, AL is 0.29%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With a median home value of $376,550 in Decatur, the typical annual property tax bill is $1,142, which is well below the national median of $2,690. Property taxes in Decatur are calculated based on the tax assessed value, which often falls below the market value due to various exemptions such as primary residence and agricultural exemptions. Understanding Decatur'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 Decatur 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
Decatur, Alabama Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.29%
Estimate Property Tax Bill
$1,092
$1,013
Ownwell’s Decatur Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Decatur with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Decatur 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 Decatur, Alabama
Property taxes in Decatur, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Decatur is 0.29%, significantly lower than both the Alabama state median of 0.40% and the U.S. national median of 0.99%. Local government entities within Decatur set these rates annually, and they can vary significantly across different neighborhoods. Each year, Decatur 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 Decatur's effective property tax rate to other counties in Alabama and the national median. For comparison, the highest median property tax rate in Alabama can be found in Lawrence County with a rate of 0.33%, while some areas enjoy significantly lower rates. Understanding how these cities compare with Decatur provides valuable insights into the varying tax landscape across Morgan County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Decatur Tax Rate
0.29%
Average Lawrence County Tax Rate
0.30%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Decatur, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35603 | 0.24% | 0.29% | 0.29% | 0.30% | 0.44% |
Source: Ownwell
Property Tax Assessment Values Across Decatur, Alabama
Understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes in Decatur, 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 local 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 Decatur, 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 Decatur helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. Notably, the highest median tax bill is $1,142 in zip code 35603, while the lowest median tax bill is also $1,142 in the same zip code.
Average Decatur Assessed Value
$376,550
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 Decatur, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35603 | $111,600 | $225,342 | $376,550 | $451,100 | $544,900 |
Source: Ownwell
Property Tax Bills Across Decatur, Alabama
In Decatur, Lawrence County, AL, property tax bills are calculated based on the assessed value of the property, which is determined by the local tax assessor. The assessed value is a percentage of the market value of the home. For instance, if your home has a market value of $376,550, the assessed value will be a fraction of this amount. The local tax rate is then applied to the assessed value to determine the annual property tax bill. Several factors influence the tax bill, including property location, home size, and any applicable exemptions. In Decatur, the median tax bill can vary significantly, with the 25th percentile at $811 and the 75th percentile at $1,347. The highest median tax bill in the area is $1,142, found specifically in the 35603 zip code. These variations can impact homeowners differently, with higher-valued properties generally facing larger tax bills. Understanding these factors can help homeowners anticipate their annual property tax obligations and plan accordingly.
Average Decatur Tax Bill
$1,142
Average Lawrence County Tax Bill
$474
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Decatur, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35603 | $364 | $811 | $1,142 | $1,347 | $1,563 |
Source: Ownwell