Madison, Alabama Property Taxes
The median property tax rate in Madison, AL is 0.68%, which is lower than the national median of 0.99% but higher than the Alabama state median of 0.47%. With a median home value of $292,600 in Madison, the typical annual property tax bill amounts to $2,034, falling below the national median of $2,690. Property taxes in Madison are determined based on the tax assessed value, which is often lower than the market value due to exemptions like the primary residence and agricultural exemptions. Gaining a thorough understanding of Madison'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 the city or another part of Madison, understanding 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
0.68%
Estimate Property Tax Bill
$1,990
$1,846
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, including public schools, road maintenance, and emergency services. The median tax rate in Madison stands at 0.68%, which is lower than 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 areas in Madison County and the national median. For comparison, the 35758 zip code has the highest median property tax rate of 0.69%, while the 35757 zip code has the lowest median tax rate of 0.51%. Understanding how these areas compare with Madison provides valuable insights into the varying tax landscape across Madison County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Madison Tax Rate
0.68%
Average Madison County Tax Rate
0.56%
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 | 0.56% | 0.57% | 0.60% | 1.16% | 1.23% |
| 35757 | 0.33% | 0.34% | 0.51% | 0.57% | 0.73% |
| 35758 | 0.63% | 0.68% | 0.69% | 0.69% | 1.39% |
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 Madison 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 Madison, 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. The zip code with the highest median tax bill is 35758 at $2,453, while the lowest is 35757 at $1,438.
Average Madison Assessed Value
$292,600
Average Madison County Assessed Value
$243,200
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 | $168,180 | $232,275 | $277,450 | $361,600 | $451,990 |
| 35757 | $174,080 | $218,150 | $283,900 | $393,400 | $487,200 |
| 35758 | $168,000 | $226,800 | $303,700 | $436,200 | $574,860 |
Source: Ownwell
Property Tax Bills Across Madison, Alabama
In Madison, AL, property tax bills are calculated based on the assessed value of a home, which is typically a percentage of the market value. The tax rate, known as the millage rate, is applied to this assessed value to determine the tax bill. Various factors such as property location, improvements, and exemptions can influence the assessed value and, consequently, the tax bill. Homeowners in Madison experience a range of property tax bills. For instance, the 25th percentile tax bill is $1,424, while the 75th percentile tax bill is $2,969. At the 90th percentile, homeowners can expect to pay around $3,947. The highest median tax bill in the area reaches $2,453 in the 35758 zip code, whereas the lowest median tax bill is $1,438 in the 35757 zip code. These property taxes play a crucial role in funding local services such as schools, public safety, and infrastructure, directly impacting the quality of life in the community. Homeowners must stay informed about their property assessments to ensure they are paying a fair amount.
Average Madison Tax Bill
$2,034
Average Madison County Tax Bill
$1,321
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 | $1,149 | $1,440 | $1,953 | $2,758 | $3,478 |
| 35757 | $657 | $945 | $1,438 | $1,981 | $2,698 |
| 35758 | $1,279 | $1,700 | $2,453 | $3,348 | $4,321 |
Source: Ownwell