Jefferson County & Alabama Property Tax Overview

Valuation Process 

Jefferson County recently sent out valuation notices for properties with an increase in value or change in boundary. The county utilizes a mass appraisal process set forth by the Alabama Department of Revenue. When a sale within a neighborhood indicates an increase or decrease, valuations are adjusted. If you received a notice and wish to appeal, the deadline is 30 days after the notice date. 

How Property Taxes Calculated  

  • Assessing the property value: The first step is to determine the assessed value of the property. A single-family home (homesteaded) has an assessment percentage of 10%, so if the appraised value is $500,000, the assessed value is $50,000. 
  • Tax rate: Once the assessed value is determined, the property tax rate is applied. Property tax rates are expressed in mills, where one mill represents one-tenth of one cent (0.001). For example, a tax rate of 50 mills would equal $50 in taxes for every $1,000 of assessed value.
  • Exemptions and deductions: Common exemptions may include homestead exemptions, senior citizen exemptions, or exemptions for veterans.
  • Calculation: Property Taxes = (Assessed Value * Tax Rate) – Exemptions

Homestead Exemption 

The regular homestead exemption (Type H1) is available to Alabama residents who own and occupy a single-family home as their primary residence. The exemption is $4,000 in assessed value against state taxes and $2,000 in assessed value against county taxes. However, the homestead exemption only applies against the state and county tax portion, not school levies.  

Additional Age and Disability Based Homestead Exemptions

  • Type H-2. Taxpayers age 65 and older with an annual adjusted gross income of less than $12,000 as reflected on the most recent state income tax return or some other appropriate evidence, OR who are retired due to permanent and total disability (regardless of age)–exempt from all of the state portion of the property taxes and $5,000 of assessed value on the county portion of the ad valorem taxes, including school district ad valorem taxes.
  • Type H-3 – Age 65 and older. Taxpayers age 65 and older with net taxable income of $12,000 or less on the combined (taxpayer and spouse) Federal Income Tax Return – exempt from all ad valorem taxes.
  • Type H-3 (Disabled) Taxpayer is permanently and totally disabled – exempt from all ad valorem taxes. There is no income limitation.
  • Type H-4. Taxpayers age 65 and older with income greater than $12,000 on their most recent Alabama Income Tax Return–exempt from all of the state portion of the ad valorem taxes and receive the regular homestead exemption ($2,000 assessed value) on county taxes. If age 65 or older, everyone should qualify for the H-4 exemption – the exemption must be filed in advance and renewed annually. 

To see a detailed property tax calculation, go to the Jefferson County website using the link below.

Clink on “Property tax” under Quick links on the left side of the screen. Select 2022 tax year and the property tax calculation will appear under “Tax Info” 

While we’ve deeply explored Jefferson County, all Alabama counties follow the same basic process and rules.