Alabama Property Taxes Explained

Property TaxesPROPERTY

All real property, real estate (except that which is exempt by the Constitution and Laws of Alabama) is subject to ad valorem taxation and must be listed with the County Tax Commissioner.


When you purchase or acquire property in Jefferson & Shelby County, you file your assessment with the Tax Commissioner on or before December 31 for any property you have purchased or acquired during the previous fiscal year (September 30 to October 1). You must show proof of interest in property, such as a deed or other documentation of ownership before being allowed to transfer property. In Jefferson and Shelby County, it is not necessary to reassess real property every year, unless there is some change either in ownership, mailing address, or description of property or a physical change in the improvements or to the land. Such changes must be reported by the property owner to the Tax Commissioner by December 31.


is allowed the owner-occupant and is claimed at the time of assessment.

  1. Any owner-occupant under 65 years of age is allowed homestead exemption on state taxes not to exceed $4,000 and on county taxes not to exceed $2,000 assessed value, both excluding all school and municipal taxes.
  2. Homestead "Special" - If you are 65 years of age or older and your income is less than $12,000, tax credit is given for all the State tax. The County tax credit is based on the first $5,000 of assessed value. You must claim this exemption; proof of age and income is required.
  3. Any owner-occupant over 65 years of age, having a net annual taxable income of $7,500 or less, is exempt from taxes on the principal residence. You must claim this exemption; proof of age and income is required.
  4. Any owner-occupant who is 100% disabled or blind is exempt from taxes on the principal residence. You must claim this exemption and proof of disability is required.

Special exemptions (A, B, C, and D above) must be filed annually with the Property Tax Commissioner.


FIRST: Assessment rate or ration (fractional amount of market value). Class III- Single family; owner-occupied homes or condominiums; and farm and timber properties. Assessment rate 10%. Class II- All other properties not included in I and III (includes apartments, commercial and industrial properties, duplexes, triplexes and quadriplexes). Assessment Rate 20%. Class I- Public Utilities Assessment Rate 30%. SECOND: You need the taxation rate in your area. Taxation rates are computed in "mills" (tenth part of a cent), but are sometimes quoted in dollars per hundreds or thousands. THIRD: If you are entitled to tax credit for homestead exemption, it is deducted from your gross tax as shown in the following example: A single-family home in the City of Pelham and a home outside any municipality within Shelby County are shown.



Market Value

$100,000 X 10%

$100,000 X 10%

Assessed Value



Millage Factor






Claimed Homestead
Exemption (Basic)






CURRENT USE VALUE: Current Use must be applied for by December 31 prior to the tax year (on farm land, pasture land and timber land only).

Questions About Property Taxes?

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