Sipsey, Alabama Property Taxes
The median property tax rate in Sipsey, AL is 0.25%, significantly lower than both the national median of 0.99% and Alabama's state median of 0.47%. With a median home value of $37,600, the typical annual property tax bill in Sipsey reaches just $103, far below the national median of $2,690. Property taxes in Sipsey are calculated based on the tax assessed value, which often falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Sipsey'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 Sipsey 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
Sipsey, Alabama Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.25%
Estimate Property Tax Bill
$94
$87
Ownwell’s Sipsey Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Sipsey with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Sipsey 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 Sipsey, Alabama
Property taxes in Sipsey, Alabama, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Sipsey is 0.31%, which is lower than both the Alabama state median of 0.33% and the U.S. national median of 0.99%. Local government entities within Sipsey set these rates annually, and they can vary significantly across different neighborhoods. Each year, Sipsey 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 Sipsey's effective property tax rate to other counties in Alabama and the national median. For comparison, the 35209 zip code in Jefferson County has the highest median property tax rate of 0.66%, while the 35210 zip code in Jefferson County has the lowest median tax rate of 0.33%. Understanding how these cities compare with Sipsey provides valuable insights into the varying tax landscape across Walker County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Sipsey Tax Rate
0.25%
Average Walker County Tax Rate
0.31%
Average Alabama Tax Rate
0.47%
Average United States Tax Rate
0.99%
Property Tax Rates Across Sipsey, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35584 | 0.16% | 0.20% | 0.25% | 0.51% | 0.63% |
Source: Ownwell
Property Tax Assessment Values Across Sipsey, Alabama
In Sipsey, 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 Walker 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 Sipsey, 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 Sipsey helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The highest and lowest median tax bills in Sipsey are both $103.00, found in the 35584 zip code.
Average Sipsey Assessed Value
$37,600
Average Walker County Assessed Value
$97,400
Average Alabama Assessed Value
$149,600
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Sipsey, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35584 | $10,320 | $20,800 | $37,600 | $64,200 | $109,180 |
Source: Ownwell
Property Tax Bills Across Sipsey, Alabama
In Sipsey, property tax bills are calculated based on the assessed value of a home, which is a percentage of its market value. For example, with a median home price of $37,600, the assessed value forms the basis for the tax bill. The local tax rate is applied to this assessed value to determine the final tax bill. Factors such as property size, location, and improvements can influence the assessed value, thereby affecting the tax bill. Homeowners in Sipsey experience varying tax bills. At the 25th percentile, the tax bill is around $61, while at the 75th percentile, it rises to $225. Those in the 90th percentile can expect a tax bill of approximately $392. These figures highlight the range of property tax burdens within the city. Compared to the national median property tax rate of 0.99%, Sipsey's property taxes are relatively low, providing some financial relief to homeowners. Understanding these factors helps homeowners anticipate their tax obligations and manage their finances accordingly.
Average Sipsey Tax Bill
$103
Average Walker County Tax Bill
$298
Average Alabama Tax Bill
$717
Average United States Tax Bill
$2,690
Property Tax Bills Across Sipsey, Alabama
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 35584 | $35 | $61 | $103 | $225 | $392 |
Source: Ownwell