Alabama Property Taxes Explained for Huntsville, Madison and Athens

Alabama property taxes are some of the lowest in the country, but the way they work surprises a lot of people moving here. Homes are taxed on a fraction of their value, the bill is paid once a year in arrears, and the homestead exemption is not automatic. Here is how it works, with real numbers.

How the Bill Is Figured

1. Appraised value comes from the county, and it can differ from what you paid.
2. Assessed value is a percentage of that. A home you live in is Class III and assessed at 10%. A rental or second home is Class II and assessed at 20%.
3. Millage is the local tax rate. One mill is $0.10 per $100 of assessed value.
4. Exemptions come off the result, and you have to file for them.

Millage by City

Madison County figures come from the county's own tables. Limestone County figures are our sums of the state's published millage components; confirm with the Limestone County Revenue Commission.

What a $350,000 Home Pays

Each example is $350,000 × 10% = $35,000 assessed, times the local millage. The same Huntsville home held as a rental (20%, no homestead) would be about $4,060. These are examples, not quotes; your bill uses the county's appraised value.

Dates That Matter

• October 1 is the assessment date. Taxes are based on who owns the home, and how it is used, on October 1.
• Taxes are due October 1 and become delinquent after December 31. They cover the tax year that began the previous October 1, so they are paid in arrears.
• At closing, the current year's tax is commonly split between buyer and seller, often as a credit from the seller. Your purchase contract controls how; ask your closing attorney or title company.

The Homestead Exemption

If the home is your primary residence on October 1, file for the homestead exemption by December 31. In Madison County it saves about $48 a year, and more importantly it keeps the home in the 10% class. It is not automatic.

Madison County: bring your deed, a driver's license showing the property address issued on or before October 1, and the trust document if the home is in a trust. If you change your license between October 1 and December 31, also bring your homeowner's insurance policy and a Huntsville Utilities set-date letter. Active-duty military can use the insurance policy and set-date letter without changing their license. Tax Assessor: Madison County Service Center, 1918 Memorial Pkwy NW, Huntsville, (256) 532-3350.

Limestone County: exemptions go through the Revenue Commission, (256) 233-6433.

Age 65 and Older, Disabled or Blind

• At 65, homeowners are exempt from the state portion of property tax with no income limit.
• With income of $12,000 or less, larger exemptions apply, up to an exemption from all property tax (H-3). Owners who are permanently and totally disabled qualify regardless of age or income.
• In Madison County, bring proof of age and income to the Tax Assessor. Handwritten returns are not accepted.
• On the ballot: Limestone County voters decide on a senior tax freeze (Local Amendment 1) on November 3, 2026. It would freeze the assessed value for owners 65 and older who have lived in the home at least five years, starting with claims filed October 1, 2027. A proposed Madison County senior exemption (SB 371) passed the state Senate but is not law. Check the current status before you count on either.

Farm and Timber Land

Agricultural and forest land can be valued on its current use instead of market value. Apply with the county between October 1 and January 1. A new owner has to re-apply after buying, and converting the land can trigger a rollback of up to three years of the tax difference.

Other Deadlines

• Report new improvements (an addition, a pool, a finished basement) and sign the new assessment by December 31, or face a 10% penalty.
• To protest a value change, go to the Board of Equalization within 30 days of the written notice.

After You Buy: Checklist

1. Make sure the deed is recorded in Probate (your closing attorney or title company usually does this).
2. Update your driver's license to the new address.
3. File for homestead by December 31.
4. If you are 65 or older or disabled, file for the senior or disability exemption at the same time.

Questions

When are property taxes due in Madison County, AL?

October 1. They become delinquent after December 31, and they cover the tax year that began the previous October 1.

How much is property tax on a $350,000 home in Huntsville?

About $2,030 a year before exemptions, and about $1,982 after the regular homestead exemption, if it is your primary residence (Madison County side, 58 mills). The same home as a rental would be about $4,060.

Do seniors pay property tax in Alabama?

Homeowners 65 and older are exempt from the state portion with no income limit, and owners with income of $12,000 or less can qualify for larger exemptions. You have to apply with the county.

More: relocation guide, retiring in Huntsville and behind on property taxes?

Sources: ALDOR - Property Tax Assessment; Madison County Tax Assessor - Property Tax Facts; ALDOR - Homestead Exemptions; ALDOR FAQ - When are my property taxes due?; ALDOR FAQ - What should I do when I purchase property?; Madison County Tax Assessor - Homestead Exemptions; Limestone County Revenue Commission; ALDOR FAQ - I am over 65, do I have to pay property taxes?; HB310 enrolled text (2026 RS); BallotReady - Limestone Local Amendment 1; WAFF - Limestone County senior tax freeze bill heads to Gov. Ivey's desk (Mar 11, 2026); FastDemocracy - AL SB 371 (2026); Madison County Tax Collector - Tax Levy Information; ALDOR millage rates (October 2024); News Courier - How much do you pay to live in Athens? (2017); ALDOR - Current Use.

Tax information is general and is not tax advice. Rates and rules change; confirm your situation with a CPA or the county tax office. Wyze Realty is a real estate brokerage and does not prepare taxes.

Distances are straight-line miles, not drive times. Your commute depends on the route, your gate or parking lot and the time of day, so drive it at rush hour before you buy. Market numbers are a dated snapshot from Valley MLS data and change daily; listing information is deemed reliable but not guaranteed. Employer information comes from public sources listed on this page as of October 23, 2026. Wyze Realty is not affiliated with any employer named here.