Madison, Alabama Property Taxes
The median property tax rate in Madison, AL is 0.82%, which is lower than the national median of 0.99% but significantly higher than the Alabama state median of 0.47%. With the median home value in Madison at $316,100, the typical annual property tax bill amounts to $2,573, falling just below the national median of $2,690. Property taxes in Madison are calculated based on the assessed value, which is often lower than the market value due to various exemptions, such as those for primary residences and agricultural properties. Understanding Madison's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you reside in the heart of Madison or another part of Limestone County, gaining insight into the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Madison, Alabama Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.82%
Estimate Property Tax Bill
$2,592
Ownwell’s Madison Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Madison with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Madison 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 Madison, Alabama
Property taxes in Madison, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Madison is 0.82%, which is lower than both the Alabama state median and the U.S. national median of 0.99%. Local government entities within Madison set these rates annually, and they can vary significantly across different neighborhoods. Each year, Madison 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 Madison's effective property tax rate to other counties in Alabama and the national median. For comparison, the 35756 zip code has both the highest and lowest median property tax rate of 0.82%. Understanding how these cities compare with Madison provides valuable insights into the varying tax landscape across Limestone County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Madison Tax Rate
0.82%
Average Limestone County Tax Rate
0.42%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Madison, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35756 | 0.34% | 0.63% | 0.82% | 0.85% | 1.34% |
| 35757 | 0.23% | 0.33% | 0.35% | 0.40% | 0.74% |
| 35758 | 0.29% | 0.32% | 0.36% | 0.57% | 0.69% |
Source: Ownwell
Property Tax Assessment Values Across Madison, Alabama
In Madison, 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 Limestone 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. Being aware of these valuation processes in Madison helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. Notably, the highest median tax bill in the area is $6,832 in the 35758 zip code, while the lowest median tax bill is $569 in the 35757 zip code.
Average Madison Assessed Value
$316,100
Average Limestone County Assessed Value
$202,600
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Madison, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35756 | $165,900 | $235,200 | $320,300 | $435,300 | $531,440 |
| 35757 | $105,470 | $126,450 | $154,050 | $184,625 | $221,210 |
| 35758 | $603,440 | $1,092,950 | $1,908,800 | $2,198,700 | $2,372,640 |
Source: Ownwell
Property Tax Bills Across Madison, Alabama
In Madison, located in Limestone County, Alabama, property tax bills are calculated based on the assessed value of a home, which is a percentage of its market value. The assessed value is then multiplied by the local property tax rate. For homeowners, this means that the amount they owe in property taxes is directly tied to the value of their property. Several factors are considered when determining the tax bill, including the median home price in the area, which stands at $316,100. The tax bills in Madison vary significantly; the 25th percentile tax bill is $1,141, while the 75th percentile tax bill is $3,732. For those in the 90th percentile, the tax bill can reach up to $4,695. Homeowners in the zip code 35758 experience the highest median tax bill at $6,832, while those in zip code 35757 enjoy the lowest median tax bill at $569. This variability affects homeowners differently, depending on their property's assessed value and location within Madison.
Average Madison Tax Bill
$2,573
Average Limestone County Tax Bill
$871
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Madison, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35756 | $645 | $1,218 | $2,624 | $3,756 | $4,722 |
| 35757 | $284 | $430 | $569 | $814 | $1,034 |
| 35758 | $1,978 | $3,798 | $6,832 | $13,063 | $16,802 |
Source: Ownwell