Rate Breakdown

Property taxes in Houston County are calculated by multiplying the assessed value (minus exemptions) by the total local millage rate.

How Property Tax Works in Houston County

In Houston County, Alabama, property taxes are calculated by applying the appropriate millage rate to the assessed value of a parcel of real or personal property. The County Tax Assessor’s Office first determines the market value of a property—what it would sell for on the open market. This market value is then multiplied by a statutory assessment ratio (typically 10% for residential property) to arrive at the assessed value. Once the assessed value is set, the county applies the combined millage rates of all taxing jurisdictions (city, school district, fire‑rescue, and special districts).

One “mill” equals one‑tenth of one percent, or $1 of tax for every $1,000 of assessed value. For example, if a home’s assessed value is $120,000 and the total millage rate is 30 mills, the annual property tax bill would be:

$120,000 ÷ 1,000 × 30 = $3,600

Millage rates can vary each fiscal year based on budgetary needs, referendums, and state‑mandated voter‑approved measures. The Houston County Finance Department posts the current rates on its website, and the estimator tool automatically pulls the latest figures.

Available Exemptions

Alabama offers several exemptions that can reduce the taxable portion of your assessed value. Applying for these credits can lower your annual bill substantially.

• Homestead Exemption: Residents who occupy the property as their primary residence may qualify for a $500 exemption on the assessed value, plus an additional $1,500 for individuals aged 65 or older.
• Senior Citizen Exemption: Homeowners 65+ may receive a further $500 exemption, and those with a combined income below a state‑set threshold may qualify for an additional $500.
• Disability Exemption: Persons with a qualifying physical or mental disability can claim a $500 exemption; an extra $500 is available if the homeowner is also 65 or older.
• Veteran Exemption: Veterans who served honorably and are either disabled or over 65 receive a $500 exemption. If the veteran is also a senior citizen, the total exemption can reach $1,000.

All exemptions must be applied for in writing to the Houston County Tax Assessor’s Office by March 31 of the tax year. Proof of eligibility (age, disability documentation, military discharge papers) is required.

Payment Schedule & Deadlines

Houston County property taxes are due in two installments. Timely payment avoids penalties and interest.

• First Installment: Due on the first Monday in November. This payment covers half of the annual tax liability.
• Second Installment: Due on the first Monday in March of the following year. Paying the second installment by this date eliminates any late fees.
• Late Payment Consequences: If an installment is not received by the deadline, a 10% penalty is added to the overdue amount, plus interest at the state‑prescribed rate (currently 1% per month).
• Payment Options: Taxes can be paid online through the County’s secure portal, by mailed check, or in person at the Treasurer’s Office. Some lenders may escrow property taxes as part of your mortgage payment.

Appealing Your Assessment

If you believe your property has been over‑assessed, Houston County provides a structured appeals process.

• Step 1 – Review the Notice: The Assessment Notice mailed in January explains the assessed value and how it was calculated. Verify the square footage, lot size, and comparable sales used.
• Step 2 – File a Formal Appeal: Submit a written appeal to the Houston County Board of Equalization within 30 days of receiving the notice. Include supporting evidence such as recent appraisals, sales data, or photos of condition issues.
• Step 3 – Attend the Hearing: The Board will schedule a public hearing, typically within 60 days of the filing. Be prepared to present your documentation and answer questions.
• Step 4 – Receive the Decision: The Board issues a written decision. If the outcome is unfavorable, you may request a further appeal to the Alabama Board of Tax Review within 30 days.

Act promptly—missed deadlines can forfeit your right to contest the assessment for that tax year.