Pelham, Alabama Property Taxes
The median property tax rate in Pelham, AL is 0.56%, slightly above the Alabama state median of 0.47% but still below the national median of 0.99%. With a median home value of $231,545, the typical annual property tax bill in Pelham is approximately $1,328, which is lower than the national median of $2,690. Property taxes in Pelham are calculated based on the tax assessed value, which is often less than the market value due to exemptions like the primary residence and agricultural exemptions. Understanding Pelham'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 Pelham 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
Pelham, Alabama Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.56%
Estimate Property Tax Bill
$1,297
$1,203
Ownwell’s Pelham Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Pelham with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Pelham 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 Pelham, Alabama
Property taxes in Pelham, Alabama, are crucial for funding essential local services, including public schools, road maintenance, and emergency services. The median tax rate in Pelham is 0.56%, lower than the U.S. national median of 0.99%. Local government entities within Pelham set these rates annually, and they can vary across different neighborhoods. Each year, Pelham 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 Pelham's effective property tax rate to other counties in Alabama and the national median. For comparison, the 35124 zip code has the highest median property tax rate of 0.56%, while the same zip code also has the lowest median tax rate of 0.56%. Understanding how these cities compare with Pelham 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 Pelham Tax Rate
0.56%
Average Shelby County Tax Rate
0.48%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Pelham, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35124 | 0.34% | 0.55% | 0.56% | 0.57% | 1.16% |
Source: Ownwell
Property Tax Assessment Values Across Pelham, Alabama
In Pelham, 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 Pelham, 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 Pelham helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The median home price in Pelham is $231,545, with tax bills ranging from $942 at the 25th percentile to $2,554 at the 90th percentile. The highest and lowest median tax bills are both $1,328 in the 35124 zip code.
Average Pelham Assessed Value
$231,545
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 Pelham, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35124 | $141,630 | $179,300 | $231,545 | $326,600 | $450,140 |
Source: Ownwell
Property Tax Bills Across Pelham, Alabama
In Pelham, located in Shelby County, AL, property tax bills are determined by a combination of the property's assessed value and the local tax rate. The assessed value is a percentage of the property's market value, which is then multiplied by the local tax rate to calculate the annual tax bill. For instance, the median home price in Pelham is $231,545, and the tax bill can vary significantly. Homeowners in the 25th percentile pay around $942 annually, while those in the 75th percentile pay approximately $1,921. At the 90th percentile, the tax bill can reach up to $2,554. This tax burden impacts homeowners by influencing their overall housing costs, potentially affecting affordability and financial planning. Compared to the national median property tax rate of 0.99%, Pelham's property tax rates are competitive, providing a relatively moderate tax environment for its residents. The highest and lowest median tax bills in the area are both $1,328, reflecting a consistent tax rate across different neighborhoods within the zip code 35124.
Average Pelham Tax Bill
$1,328
Average Shelby County Tax Bill
$1,229
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Pelham, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35124 | $216 | $942 | $1,328 | $1,921 | $2,554 |
Source: Ownwell