Bessemer, Alabama Property Taxes
The median property tax rate in Bessemer, AL is 0.43%, significantly lower than both the national median of 0.99% and the Alabama state median of 0.47%. With the median home value in Bessemer at $291,590, the typical annual property tax bill is $1,192, well below the national median of $2,690. Property taxes in Bessemer are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Bessemer'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 Bessemer 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
Bessemer, Alabama Property Tax Bill Calculator
$100,000
$2,500,000
$5,000,000
Average Tax Rate
0.47%
Estimate Property Tax Bill
$940
Ownwell’s Bessemer Property Tax Bill Calculator is an invaluable resource for homeowners, real estate investors, and potential buyers looking to estimate their annual property taxes in Bessemer. By simply entering your property's estimated assessed value, the calculator utilizes the median tax rate specific to Bessemer to provide an accurate estimate of your property tax bill. This user-friendly tool offers a clear understanding of your potential tax liabilities, helping you make informed financial decisions. For those interested in more granular insights, additional localized information is available by scrolling down. Your property’s assessed value, determined by the county, includes considerations for any applicable exemptions, ensuring precise tax calculations.
Property Tax Rates Across Bessemer, Alabama
Property taxes in Bessemer, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Bessemer is 0.43%, significantly lower than both the Alabama state median and the U.S. national median of 0.99%. Local government entities within Bessemer set these rates annually, and they can vary significantly across different neighborhoods. Each year, Bessemer 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 Bessemer's effective property tax rate to other areas in Alabama and the national median. For comparison, the 35020 zip code has the highest median property tax rate of 0.98%, while the same zip code also has the lowest median tax rate of 0.98%. Understanding how these areas compare with Bessemer provides valuable insights into the varying tax landscape across Shelby County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Bessemer Tax Rate
0.43%
Average Shelby County Tax Rate
0.48%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Bessemer, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35020 | 0.98% | 0.98% | 0.98% | 0.98% | 0.98% |
| 35022 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell
Property Tax Assessment Values Across Bessemer, Alabama
In Bessemer, 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 Shelby 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 Bessemer, 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 Bessemer helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The highest and lowest median tax bills in Bessemer are both $1123.00, with the zip code 35020.
Average Bessemer Assessed Value
$291,590
Average Shelby County Assessed Value
$249,060
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Bessemer, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35020 | $104,664 | $108,345 | $114,480 | $120,615 | $124,296 |
| 35022 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell
Property Tax Bills Across Bessemer, Alabama
In Bessemer, property tax bills are calculated based on the assessed value of a home, which is a percentage of the market value. The property tax rate in Bessemer is influenced by various factors, including local government budgets, school district funding, and public services. For example, a home with a median market value of $291,590 will have its tax bill determined by applying the local tax rate to its assessed value. Homeowners in Bessemer can expect their tax bills to vary significantly. The 25th percentile tax bill is $687, while the 75th percentile tax bill reaches $1,691. At the 90th percentile, homeowners might see tax bills as high as $2,223. The highest median tax bill in Bessemer is $1,123, observed in the 35020 zip code. Compared to the national median property tax rate of 0.99%, Bessemer's tax rate can offer some relief to homeowners, but the actual amount can vary widely based on the assessed value and specific local rates. This variability affects homeowners' financial planning and the affordability of homeownership in the area.
Average Bessemer Tax Bill
$1,192
Average Shelby County Tax Bill
$1,229
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Bessemer, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35020 | $1,027 | $1,063 | $1,123 | $1,183 | $1,219 |
| 35022 | N/A | N/A | N/A | N/A | N/A |
Source: Ownwell