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Updated 2025 Tax Year

Butler County
Property Tax Guide

Everything you need to know about property taxes in Butler County, AL. Rates, due dates, exemptions, and how it affects your monthly payment.

8 Official Sources
8 min read
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Quick Facts
Tax Rate
Approximately 1% of assessed value (varies by taxing district combination)
1st Due
Oct 1
Exemptions
4+ Available
Section 1

How Property Tax Works

Butler County, Alabama operates under the state's property tax system, where property taxes serve as a crucial funding source for local services including schools, law enforcement, fire protection, and county infrastructure. The county's property tax system is administered through the Butler County Revenue Commissioner's office, with assessments conducted by the County Assessor.

Property tax rates in Butler County vary by location within the county due to different combinations of taxing districts, including the county general fund, school districts, and various special assessment districts. The effective tax rate typically ranges around Alabama's statewide average of approximately 1% of assessed value, though actual rates depend on your specific location and applicable special districts. Property is assessed at different percentages of market value based on classification, with residential property generally assessed at 10% of fair market value.

All property owners should note that tax credits and exemptions require formal application and are not automatically applied to your tax bill. The specific millage rates and special district assessments that apply to your property depend on your exact location within Butler County.

Section 2

What Makes Up Your Tax Bill

ComponentRate (Mills)Description
County General32.5Basic county operations and services
County SchoolVariesLocal school district funding
State Property Tax6.5State-mandated assessment
Special DistrictsVariesFire districts, library districts, other local services
Total Estimated39.0-45.0Combined rate varies by location

Note: These rates reflect the most recent available data and may change for FY 2025-2026. Actual total rates vary significantly based on your specific location within Butler County due to different combinations of school districts and special taxing districts. Contact the Butler County Revenue Commissioner for your exact millage rate based on your property's tax map location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Butler County, property taxes are due in two installments:

First Installment
Oct 1
Delinquent after Dec 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Butler County are triggered when there are changes in property ownership or improvements that affect the assessed value during the tax year. The most common triggers include property sales that result in reassessment, completion of new construction, or substantial renovations that increase property value.

When a supplemental tax is issued, it represents the difference between what was originally billed and what should have been billed based on the updated assessment. For example, if you purchase a home mid-year and the county reassesses the property at a higher value than the previous assessment, you may receive a supplemental tax bill for the additional amount owed from the date of ownership change through the end of the tax year.

The calculation is prorated based on the number of months remaining in the tax year when the change occurred. If a property's assessed value increases by $10,000 in July (6 months remaining in the fiscal year), and the total millage rate is 40 mills, the supplemental tax would be approximately $200 (($10,000 × 0.040) × 6/12 months).

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (10%): $30,000
  • Homestead Credit Applied: -$2,000 (if qualified and applied)
  • Net Taxable Value: $28,000
  • Annual Tax (40 mills): $1,120
  • Monthly Escrow: $93

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (10%): $60,000
  • Homestead Credit Applied: -$2,000 (if qualified and applied)
  • Net Taxable Value: $58,000
  • Annual Tax (40 mills): $2,320
  • Monthly Escrow: $193

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (10%): $100,000
  • Homestead Credit Applied: -$2,000 (if qualified and applied)
  • Net Taxable Value: $98,000
  • Annual Tax (40 mills): $3,920
  • Monthly Escrow: $327

Note: These examples assume a 40-mill total rate and availability of homestead credit. All tax credits require formal application and approval. Actual rates vary by specific location within Butler County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Butler County require borrowers to maintain an escrow account for property taxes, collecting monthly payments along with principal and interest. The lender analyzes your annual tax bill and divides it by 12 to determine your monthly escrow payment, typically adding a cushion to account for potential tax increases.

Property taxes in Butler County are due October 1st each year and become delinquent after December 31st. Lenders typically pay the tax bill directly to the Butler County Revenue Commissioner before the due date using funds from your escrow account. After payment, you should receive documentation showing the tax payment from either your lender or the county.

It's important to verify that your lender has the correct tax amount, as changes in assessed value, new exemptions, or changes in millage rates can affect your annual bill. You can verify your current tax information through the Butler County Revenue Commissioner's office and provide updates to your lender's escrow analysis department if needed.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
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Section 6

Frequently Asked Questions

Q: When are Butler County property taxes due for FY 2025-2026? A: Property taxes are due October 1, 2025, and become delinquent after December 31, 2025.

Q: What tax credits are available and do they require application? A: The primary credit is the Homestead Credit for qualifying owner-occupied residences. This and all other credits require formal application with the Butler County Revenue Commissioner - they are NOT automatic.

Q: How does the Homestead Credit work? A: The Homestead Credit is available for residents 65 and older with qualifying income limits. It provides assessment protection rather than reducing market value, and requires annual application. Contact the Butler County Assessor for current income limits and application procedures.

Q: How often are properties reassessed in Butler County? A: Alabama law requires property reappraisal every four years, though the county may conduct interim assessments for properties that have changed ownership or been substantially improved.

Q: What are the penalties for late payment? A: Properties become delinquent after December 31st. Contact the Butler County Revenue Commissioner for specific penalty rates and collection procedures.

Q: Can I pay property taxes online? A: Contact the Butler County Revenue Commissioner's office at (334) 382-3612 for current online payment options and accepted payment methods.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Butler County Board of Equalization. Contact the County Assessor's office for appeal forms, deadlines, and procedures.

Q: Why did my tax bill change if I didn't make improvements? A: Tax bills can change due to millage rate changes by various taxing districts, countywide reappraisals, or changes in special district assessments that apply to your area.

Q: What documentation do I need for tax credit applications? A: Requirements vary by credit type, but typically include proof of ownership, residency documentation, income verification (for senior credits), and completed application forms. Contact the Butler County Revenue Commissioner for specific requirements.

Q: How do special district taxes work? A: Special districts (fire, library, etc.) can levy additional taxes on properties within their boundaries. Your total tax rate includes all applicable district taxes based on your property's location within Butler County.

Verified Sources

Backed by 8 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
Property Tax Assessment - Alabama Department of Revenuerevenue.alabama.gov
02
PROPOSED BUDGET Fiscal Year July 1, 2025 - June 30, 2026butlercounty.iowa.gov
03
County
Butler County Commissionalison.legislature.state.al.us
04
Tax Doc
When are my property taxes due?revenue.alabama.gov
05
Tax Doc
Tax Delinquent Property and Land Salesrevenue.alabama.gov
06
Homestead Exemptions - Alabama Department of Revenuerevenue.alabama.gov
07
County
New Student Enrollment - Butler County School District (AL)butlerco.k12.al.us
08
HOMESTEAD EXEMPTIONS IN ALABAMAndlegis.gov
All sources verified as of 2025 Tax Year

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