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Updated 2025 Tax Year

Clay County
Property Tax Guide

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

10 Official Sources
8 min read
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Quick Facts
Tax Rate
32.5 mills ($32.50 per $1,000 assessed value), varies by special districts
Exemptions
5+ Available
Section 1

How Property Tax Works

Clay County, Alabama operates under the state's property tax system, which funds essential local services including schools, public safety, infrastructure, and county operations. Property taxes in Clay County are calculated using a millage rate system, where one mill equals $1 for every $1,000 of assessed value. The county's current tax rate is 32.5 mills, meaning property owners pay $32.50 per $1,000 of assessed value.

Property in Alabama is assessed at different percentages based on classification, with residential property typically assessed at 10% of market value. The effective tax rate for homeowners in Clay County is approximately 0.325% of assessed value. However, actual tax bills can vary significantly depending on your specific location within the county, as additional special taxing districts for schools, fire protection, and other services may apply supplemental millage rates to properties in their boundaries.

Section 2

What Makes Up Your Tax Bill

ComponentRate (Mills)Description
County General Fund32.5Basic county operations and services
School DistrictVariesLocal school funding (varies by district)
Fire ProtectionVariesFire department services (if applicable)
Solid WasteVariesWaste management services (if applicable)
Total Base Rate32.5+Additional districts may apply

Rates shown are for Levy Year 2025 and represent the base county millage. Your actual tax rate may be higher due to special taxing districts such as school districts, fire districts, or municipal services that apply to your specific property location. Contact the Clay County Revenue Commissioner's office to determine the exact millage rate for your property address.

Section 3

When Are Property Taxes Due?

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

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 Clay County are additional property tax assessments that occur when there are changes to property ownership, value, or classification during the tax year. The most common triggers include new construction, completion of major renovations, change of property use (such as residential to commercial), or correction of assessment errors. These taxes are calculated based on the difference between the old and new assessed values, prorated for the portion of the tax year remaining.

For example, if you complete a $50,000 home addition in March, the county assessor will reassess your property to include the improvement. If this increases your assessed value by $5,000 (10% of the improvement value), and Clay County's total millage rate is 45 mills including school district, your supplemental tax would be $225 ($5,000 × 0.045) prorated for the remaining 9 months of the fiscal year, resulting in a supplemental bill of approximately $169.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (10%): $30,000
  • Homestead Exemption Applied: $30,000 (if qualified and applied for)
  • Net Taxable Value: $30,000
  • Annual Tax (32.5 mills): $975
  • Monthly Escrow: $81

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (10%): $60,000
  • Homestead Exemption Applied: $60,000 (if qualified and applied for)
  • Net Taxable Value: $60,000
  • Annual Tax (32.5 mills): $1,950
  • Monthly Escrow: $163

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (10%): $100,000
  • Homestead Exemption Applied: $100,000 (if qualified and applied for)
  • Net Taxable Value: $100,000
  • Annual Tax (32.5 mills): $3,250
  • Monthly Escrow: $271

Note: Homestead exemptions require annual application and are not automatic. Rates shown use base county millage only; actual rates may be higher with special districts.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Clay County require property tax escrow accounts for borrowers with less than 20% equity. The lender collects monthly payments equal to 1/12 of your estimated annual property tax bill and holds these funds to pay your taxes when due on October 1st. Lenders typically conduct annual escrow analyses and may adjust your monthly payment based on actual tax bills and account balances.

Property owners with escrow accounts should verify that their lender receives and pays the correct tax bill, especially after applying for homestead exemptions or other credits that could reduce the tax amount. If you receive a tax bill directly despite having an escrow account, contact your lender immediately to ensure proper payment. The Clay County Revenue Commissioner's office can confirm whether your taxes have been paid and by whom.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Clay County? A: Property taxes for fiscal year 2024-2025 are due by October 1, 2024, and become delinquent after December 31, 2024.

Q: What homestead tax credits are available and how do I apply? A: Qualified homeowners may apply for a homestead exemption that can reduce assessed value and limit annual assessment increases. Applications must be filed with the county assessor's office and require proof of primary residence occupancy.

Q: Does the homestead exemption automatically reduce my property value? A: No, homestead exemptions primarily cap assessment increases to protect against rapid value growth. They require annual application and are not automatic. The exemption helps limit how much your assessed value can increase each year.

Q: How often are properties reassessed in Clay County? A: Alabama law requires property reassessment every four years, though the assessor may conduct interim assessments for new construction or significant improvements.

Q: What happens if I pay my property taxes late? A: Taxes become delinquent after December 31st and accrue interest and penalties. Continued non-payment can eventually result in tax lien sales.

Q: Can I pay my property taxes online? A: Contact the Clay County Revenue Commissioner's office at (256) 354-2176 for current online payment options and accepted methods.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Clay County Board of Equalization. Contact the assessor's office for appeal deadlines and required documentation.

Q: Why might my tax rate be different from the 32.5 mills county rate? A: Additional special taxing districts for schools, fire protection, or municipal services may apply supplemental millage rates depending on your property's location within the county.

Q: Where do I apply for property tax exemptions? A: Applications for homestead and other exemptions must be filed with the Clay County Assessor's office. Visit the office in person to ensure proper application and required documentation.

Verified Sources

Backed by 10 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
Personal Property - Alabama Department of Revenuerevenue.alabama.gov
03
Tax Doc
Tax-Rates.org — The 2024-2025 Tax Resourcemylrc.sdlegislature.gov
04
Tax Doc
When are my property taxes due?revenue.alabama.gov
05
Tax Doc
Tax Delinquent Property and Land Salesrevenue.alabama.gov
06
8:30 AM, TUESDAY, JANUARY 5, 2021 Community Room, 3rd ...claycountymn.gov
07
Homestead Exemptions - Alabama Department of Revenuerevenue.alabama.gov
08
The following document was not prepared by the Office of the ...osa.ms.gov
09
State
General Summary of State Taxesrevenue.alabama.gov
10
State
GENERAL SUMMARY OF STATE TAXESrevenue.alabama.gov
All sources verified as of 2025 Tax Year

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