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Updated 2025 Tax Year

Houston County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
Approximately 0.477019% effective rate (varies by location within county due to special taxing districts)
Exemptions
4+ Available
Section 1

How Property Tax Works

Houston County property taxes fund essential local services including public schools, roads, emergency services, and county government operations. The property tax system in Alabama is based on assessed value, which is calculated as a percentage of market value depending on the property classification. For residential properties, the assessment rate is typically 10% of market value.

The effective property tax rate in Houston County for the 2025 tax year is approximately 0.477019%, though actual rates can vary by location within the county due to special taxing districts such as school districts, fire districts, and municipal services areas. Property owners should verify their specific rate with the Houston County Revenue Commissioner, as different areas may have additional assessments for local improvements or services.

Property taxes in Houston County support critical infrastructure and services, making them a vital component of local government funding. The county's relatively moderate tax rates compared to other Alabama counties help maintain affordable property ownership while still providing necessary public services to residents.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County GeneralVariableBasic county operations and services
School DistrictVariableLocal school district operations
Total Effective Rate0.477019%Combined rate for FY 2025-2026

Note: The total effective rate of 0.477019% applies to the 2025 tax levy year and is subject to voter approval for any adjustments. Rates may vary by specific location within Houston County depending on:

  • School district boundaries
  • Fire protection districts
  • Special assessment districts
  • Municipal service areas

Property owners should contact the Houston County Revenue Commissioner's office to determine the exact rate applicable to their specific property location, as special taxing districts can result in rate variations throughout the county.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Houston 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 Houston County are additional property tax assessments that occur when there are changes to property ownership, improvements, or new construction during the tax year. These taxes are calculated based on the difference between the old and new assessed values, prorated for the portion of the tax year remaining after the change.

Common triggers for supplemental taxes include:

  • Change in property ownership
  • Completion of new construction or major improvements
  • Removal or addition of exemptions
  • Correction of assessment errors

Example: If you purchase a home in Houston County in March that was previously assessed at $200,000 but now has a market value of $300,000, you would owe supplemental taxes on the increased assessment for the remaining 9 months of the tax year. The calculation would be: (New assessed value - Old assessed value) × Tax rate × (Months remaining ÷ 12).

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (10%): $30,000
  • Less: Homestead Exemption: $0 (requires application)
  • Net Taxable Value: $30,000
  • Annual Tax (0.477019%): $143.11
  • Monthly Escrow: $11.93

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (10%): $60,000
  • Less: Homestead Exemption: $0 (requires application)
  • Net Taxable Value: $60,000
  • Annual Tax (0.477019%): $286.21
  • Monthly Escrow: $23.85

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (10%): $100,000
  • Less: Homestead Exemption: $0 (requires application)
  • Net Taxable Value: $100,000
  • Annual Tax (0.477019%): $477.02
  • Monthly Escrow: $39.75

Important Note: Homestead exemptions and other tax credits require annual application and are not automatically applied. Contact the Houston County Revenue Commissioner for application forms and deadlines.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Houston County require property tax escrow accounts to ensure timely payment of property taxes. The lender collects monthly payments along with your mortgage payment and holds these funds in an escrow account until taxes are due.

How Escrow Works:

  • Lenders estimate annual property taxes and divide by 12 for monthly payments
  • Funds are held in a separate escrow account
  • Lender pays property taxes directly to Houston County when due (October 1)
  • Annual escrow analysis adjusts payments based on actual tax amounts

Escrow Payment Timing: Property taxes are due October 1 each year and become delinquent after December 31. Lenders typically pay taxes in early October to avoid late penalties. Property owners should verify that their lender has made the payment and contact the Houston County Revenue Commissioner if there are any discrepancies.

Verification: Property owners should review their annual escrow statement and verify that tax payments were made correctly. You can check payment status online or by contacting the Houston County Revenue Commissioner's office.

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 Houston County? A: Property taxes are due October 1 each year and become delinquent after December 31. For the current fiscal year 2025-2026, the next due date is October 1, 2026.

Q: What homestead tax credits are available? A: Houston County offers homestead exemptions for primary residences and special exemptions for residents 65 or older or permanently and totally disabled. All exemptions require annual application and are not automatically applied. Contact the Revenue Commissioner for application forms.

Q: How does the homestead exemption work? A: The homestead exemption reduces the assessed value of your primary residence. It does not cap assessment increases but provides a reduction in taxable value. You must apply annually and occupy the property as your primary residence.

Q: When is the application deadline for tax credits? A: Applications for homestead and other exemptions must typically be filed by December 31 of each year. Contact the Houston County Revenue Commissioner for specific deadlines and required documentation.

Q: What are the penalties for late payment? A: Property taxes become delinquent after December 31, and penalties and interest begin accruing. Contact the Revenue Commissioner's office for current penalty rates and payment options for delinquent taxes.

Q: Can I pay property taxes online? A: Contact the Houston County Revenue Commissioner's office for current online payment options and accepted payment methods. Many Alabama counties now offer online payment systems for property taxes.

Q: How do I appeal my property assessment? A: Property assessment appeals must be filed with the Houston County Board of Equalization during the specified appeal period. Contact the Revenue Commissioner for appeal forms, deadlines, and required documentation.

Q: Why do property tax rates vary within Houston County? A: Tax rates vary based on special taxing districts including school districts, fire districts, and other local service areas. Your specific location determines which districts apply to your property.

Q: How often are properties reassessed? A: Alabama law requires property reappraisal every few years, but contact the Houston County Revenue Commissioner for the current reassessment schedule and how it affects your property.

Q: What happens if I miss the exemption application deadline? A: Most exemptions must be applied for annually. Missing the deadline typically means you cannot receive the exemption for that tax year, but you can apply for the following year. Contact the Revenue Commissioner about any possible extensions or special circumstances.

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