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Updated 2025 Tax Year

Henry County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
Varies by district: Base county rate plus municipal and school district levies
1st Due
Oct 1
Exemptions
4+ Available
Section 1

How Property Tax Works

Henry County, Alabama operates under the state's property tax system, which funds essential local services including schools, roads, public safety, and county operations. Property taxes are calculated based on assessed values and millage rates, with the assessment ratio set by the state of Alabama. The effective tax rate varies throughout Henry County depending on your location within specific taxing districts, as different municipalities and special districts may impose additional levies beyond the base county rate.

Property owners should note that Henry County's tax rates reflect a combination of county, school district, and any applicable municipal or special district assessments. The actual tax burden can vary significantly between properties in different areas of the county due to these overlapping jurisdictions. Assessment values are typically based on fair market value as determined by the county assessor's office during periodic reappraisals.

Section 2

What Makes Up Your Tax Bill

ComponentRate (Mills)Description
County General32.5Base county operations and services
School DistrictVariesLocal school funding (varies by district)
MunicipalVariesCity/town services (if applicable)
Special DistrictsVariesFire districts, library districts, etc.

Note: These rates apply to the current tax year and are subject to annual changes. The county millage rate of 32.5 mills translates to $32.50 per $1,000 of assessed value. Total effective rates vary by location within Henry County due to overlapping taxing jurisdictions and special assessment districts. Contact the Henry County Revenue Commissioner for specific rates applicable to your property's location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Henry 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 Henry County are triggered by changes in property ownership, new construction, or improvements that increase a property's assessed value after the regular assessment roll has been completed. These taxes cover the period from when the change occurred until the end of the current tax year. For example, if you purchase a home in March that was previously exempt or underassessed, you may receive a supplemental bill covering March through September.

The calculation is based on the difference between the old and new assessed values, multiplied by the applicable tax rate, then prorated for the remaining months in the tax year. Henry County issued supplemental bills totaling $64,954.79 in June 2022, demonstrating the regular occurrence of these assessments. Property owners typically receive supplemental bills within 60-90 days of the triggering event, and these taxes follow the same payment schedule as regular property taxes.

Example Calculation

Example 1: $300,000 Property

  • Market Value: $300,000
  • Assessed Value (at state ratio): $60,000
  • Less: Homestead Credit (if applicable): -$4,000
  • Net Taxable Value: $56,000
  • Annual Tax (at 32.5 mills county rate): $1,820
  • Monthly Escrow: $152

Example 2: $600,000 Property

  • Market Value: $600,000
  • Assessed Value: $120,000
  • Less: Homestead Credit (if applicable): -$4,000
  • Net Taxable Value: $116,000
  • Annual Tax (at 32.5 mills county rate): $3,770
  • Monthly Escrow: $314

Example 3: $1,000,000 Property

  • Market Value: $1,000,000
  • Assessed Value: $200,000
  • Less: Homestead Credit (if applicable): -$4,000
  • Net Taxable Value: $196,000
  • Annual Tax (at 32.5 mills county rate): $6,370
  • Monthly Escrow: $531

Note: These examples use only the county rate of 32.5 mills. Actual taxes will be higher due to school district and any applicable municipal/special district taxes. Tax credits require application and are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Henry County require borrowers to establish an escrow account to ensure timely property tax payments. Your monthly mortgage payment includes a portion that goes into this escrow account, which the lender uses to pay your property taxes when they become due on October 1st each year. Lenders typically collect 1/12th of your annual tax bill each month, plus a cushion of up to two months' worth of taxes as required by federal law.

The lender will receive your tax bill directly from Henry County and make payment on your behalf. You should verify that your lender has the correct tax amount, as assessment changes or newly applied tax credits may not immediately appear in their records. If you believe your escrow payment is incorrect, contact your loan servicer with your current tax bill from Henry County. Property owners who pay taxes directly (without escrow) must ensure payment reaches the Revenue Commissioner's office by the October 1st deadline to avoid penalties.

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 Henry County property taxes due? A: Property taxes are due by October 1st each year. Taxes become delinquent after this date, and delinquent properties are turned over to the Probate Court in February.

Q: What tax credits are available and how do I apply? A: The primary tax credit is the Homestead Credit for owner-occupied residences. This credit requires an application filed with the county assessor's office and must be renewed periodically. The credit reduces your taxable assessed value, not your market value.

Q: How does the Homestead Credit work? A: The Homestead Credit is available for single-family owner-occupied dwellings on up to 160 acres. It provides a reduction in assessed value and may cap annual assessment increases. You must apply with the Henry County Assessor - it is not automatic and requires documentation of primary residence.

Q: How often are properties reassessed in Henry County? A: Alabama requires county-wide reappraisals periodically. Henry County maintains a reappraisal fund specifically for this purpose. Contact the assessor's office for the current reappraisal schedule.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Henry County Board of Equalization within the specified time frame after receiving your assessment notice. Contact the assessor's office for appeal forms and deadlines.

Q: What are the penalties for late payment? A: Delinquent taxes accrue interest and penalties. Properties with unpaid taxes are eventually turned over to Probate Court in February for collection proceedings.

Q: Can I pay my property taxes online? A: Contact the Henry County Revenue Commissioner's office to inquire about online payment options and accepted payment methods.

Q: Why did my tax bill increase when my neighbors didn't? A: Tax bills can vary due to individual property improvements, different assessment dates, varying tax credits applied, or location in different special taxing districts within the county.

Q: What if I receive a supplemental tax bill? A: Supplemental bills are issued for mid-year changes like ownership transfers or new construction. These are prorated for the remaining tax year and follow the same payment rules as regular taxes.

Q: Do senior citizens receive any special tax benefits? A: Alabama may offer certain tax credits for seniors or disabled persons. Contact the Henry County Assessor's office to inquire about available programs and application requirements.

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