Understanding Your Property Tax Valuation Notice!
It’s that time of year—property tax valuation notices are arriving in mailboxes across the Birmingham area. If you’re feeling a little confused or overwhelmed by the numbers you see, you’re not alone. As local real estate professionals, we’re here to break it down and help you understand what these notices really mean.
What Is a Property Valuation Notice?
A property valuation notice is sent by the county to inform you of the appraised value of your property for tax purposes. This value is determined through mass appraisal methods and may not match your home’s actual market value—the price a buyer would pay for it today.
How Are Property Taxes Calculated?
In Alabama, the process is relatively straightforward:
Residential properties are taxed at 10% of the appraised value.
The millage rate (the tax rate) is applied to the assessed value to determine how much you owe.
For example:
If your home’s appraised value is $400,000, the assessed value is $40,000.
Your tax amount is calculated by multiplying this assessed value by the millage rate.
Millage Rates by Municipality
Millage rates vary depending on your property's location. Here's a breakdown for key areas in the Birmingham region:
Municipality Total Millage Rate
Birmingham 7.25 mills Hoover 7.26 mills Homewood 7.50 mills Mountain Brook 10.90 mills Trussville 6.21 mills Vestavia Hills 9.26 mills Helena 5.51 mills Pelham 5.51 mills Unincorporated Jefferson County 5.01 mills Shelby County (Unincorporated) 5.01 mills
Note: Millage rates are per $1,000 of assessed value. For example, a millage rate of 7.25 mills means $7.25 in taxes per $1,000 of assessed value.
Homestead and Senior Exemptions: What You Should Know
If you own and live in your home, you may qualify for a homestead exemption, which can reduce your taxable assessed value.
Homeowners 65 or older may also qualify for senior exemptions, including:
Exemption from the state portion of property taxes
Full exemption if your income is $12,000 or less
A freeze on your property’s assessed value, preventing future tax increases due to rising market values
Why the Appraised Value Might Not Match Market Value
The county uses mass appraisal methods, which don’t always account for your home’s specific upgrades, features, or recent comparable sales. This means the appraised value could be higher or lower than what the property would sell for today.
If you believe your valuation is incorrect, you have the right to appeal the assessment. Gather evidence such as recent comparable sales, a private appraisal, or photos of your home’s condition, and contact your local tax assessor’s office.
We are here to help…
At Franklins of Bham, we don’t just help our clients buy and sell homes—we help them understand the real estate landscape, including how property taxes work in the Birmingham area. If you have questions about your valuation notice, market value, or appealing an assessment, we’re here to guide you through it.
📞 Contact Franklins of Bham today for insights tailored to your home and neighborhood!
