I've posted a link to the Alabama Deparment of Revenue which gives additional information on our state taxes. One thing to remember is that there is a big difference depending on which municipality your moving too. Many areas of Birmingham have higher real estate taxes to support their schools.

One thing that helps your property tax be a little lower in Alabama is called a homestead exemption. This is a discount (of approximately 50%) when you live in the home you purchase. You can apply for this exemption even if you own a second home in Alabama, but there are specific restrictions, such as not renting the property, etc. Depending on your loan, your taxes may be escrowed (added to your payment and put to the side by your lender) and then paid for you when the bill comes due. Many buyers in Alabama select this option when financing their home so they don't have to write the check all at once when the tax comes due; others choose to pay it themselves.

The taxes vary widely from municipality to municipality in the Birmingham area. Jefferson County taxes are higher than Shelby County. Mountain Brook and Vestavia Hills are much higher than Chelsea or Trussville. Most of the higher tax rate areas also carry some benefits such as better school districts, better libraries, and other muncipal services. We would love to answer any questions that you may have about the Birmingham area!

Yes, Alabama is extremely low for property taxes. We do have state income tax which is 5% of your income. Go on line to see advantages for a retiree to retire in Alabama. Our property taxes in Baldwin County for a primary home is calculated by 10% of the sales price X .023% - $44. If the home is located within a city of Daphne, Fairhope, or Spanish Fort, the same as above but .043%. When you calculate, you will find that our taxes are extremely low.

We have a state income tax and we have a sales tax on groceries. That is a few of the ways that it evens out the taxes. I am sure there are other items that we are taxed on that some states dont tax. I hope you enjoy your move to Birmingham.