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Updated 2025 Tax Year

Monroe County
Property Tax Guide

Everything you need to know about property taxes in Monroe 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
6.5 mills (0.65%) state base rate plus $0.0333 per $100 county levy, varies by municipality and district
Exemptions
5+ Available
Section 1

How Property Tax Works

Monroe County, Alabama operates under the state's property tax system to fund essential local services including schools, roads, public safety, and county operations. Property taxes in Monroe County are based on assessed values determined by the county assessor, with the state base rate set at 6.5 mills (0.65%). The actual tax rate varies significantly by location within the county due to additional levies from municipalities, school districts, and special taxing districts.

Property owners in Monroe County can expect effective tax rates that vary based on their specific location and applicable taxing jurisdictions. The county imposes an additional levy of $0.0333 per $100 of assessed valuation beyond the state rate. Tax bills are calculated on assessed values, and various tax credits may be available to qualifying property owners, though these require separate applications and are not automatically applied.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
State Base Rate6.5 millsStatewide property tax levy
Monroe County Levy3.33 millsCounty operations and services
Municipal RatesVariesCity/town levies (where applicable)
School District LeviesVariesLocal education funding
Special DistrictsVariesFire districts, library districts, etc.

Note: Rates shown are for available data periods. The 2025 tax year rates have not yet been determined by county officials. Actual rates vary by specific location within Monroe County based on which taxing jurisdictions apply to each property. Property owners should verify their specific rate combination based on their address.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Monroe 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 Monroe County are additional property tax assessments that occur when there are changes to a property's ownership, value, or use during the tax year. Common triggers include new construction, substantial improvements, changes in property classification, or ownership transfers that affect exemption eligibility.

When supplemental taxes are assessed, they are calculated based on the difference between the old and new assessed values, prorated for the portion of the tax year the change was in effect. For example, if a property improvement increases assessed value by $50,000 and the local tax rate is 10 mills, the supplemental tax would be $500 annually, prorated from the date the improvement was completed. Property owners typically receive supplemental tax bills separately from their regular annual property tax statement.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (10%): $30,000
  • Less: Homestead Tax Credit (if applied): -$4,000
  • Net Taxable Value: $26,000
  • Annual Tax (10 mills estimated): $260
  • Monthly Escrow: $21.67

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (10%): $60,000
  • Less: Homestead Tax Credit (if applied): -$4,000
  • Net Taxable Value: $56,000
  • Annual Tax (10 mills estimated): $560
  • Monthly Escrow: $46.67

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (10%): $100,000
  • Less: Homestead Tax Credit (if applied): -$4,000
  • Net Taxable Value: $96,000
  • Annual Tax (10 mills estimated): $960
  • Monthly Escrow: $80.00

Note: Tax credits shown require separate application and approval. Actual rates vary by specific location within Monroe County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Monroe County require property tax escrow accounts for borrowers with less than 20% equity. Lenders collect monthly payments equal to 1/12 of the annual property tax bill along with mortgage payments. These funds are held in escrow and paid directly to Monroe County when taxes become due.

Property tax payments are due by November 1st each year and become delinquent on April 1st of the following year. Lenders typically pay taxes before the November 1st deadline to avoid penalties. Property owners should verify that their lender has made timely payments and review their annual escrow analysis for accuracy. If escrow accounts have shortfalls due to tax increases, lenders may require additional monthly contributions or lump-sum payments to cover the difference.

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 Monroe County? A: Property taxes are due by November 1st each year and become delinquent on April 1st of the following year.

Q: What homestead tax credit is available and how do I apply? A: Alabama residents with owner-occupied homes may qualify for a homestead tax credit exempting up to $4,000 in assessed value from state property taxes. This credit requires a separate application filed with the Monroe County Assessor's office and is not automatically applied.

Q: How does the homestead credit work? A: The homestead credit reduces your assessed value by up to $4,000 for state tax purposes only. It does not cap assessment increases or reduce market value - it provides a flat credit amount that must be applied for annually or when ownership changes.

Q: How often are properties reassessed in Monroe County? A: Alabama law requires property reassessments, though the specific schedule for Monroe County should be verified with the County Assessor's office. Property owners can appeal assessments through the county's appeal process if they believe their assessment is incorrect.

Q: What penalties apply for late tax payments? A: Taxes become delinquent April 1st following the due date. Delinquent taxes accrue interest and penalties, and properties may eventually be advertised for tax sale if taxes remain unpaid.

Q: Can I pay property taxes online? A: Contact the Monroe County Revenue Commissioner's office to verify current online payment options and accepted payment methods.

Q: Why do tax rates vary within Monroe County? A: Different areas of Monroe County may be served by different municipalities, school districts, fire districts, or other special taxing jurisdictions, each with their own millage rates that combine to create the total tax rate for each property.

Q: Are there tax credits for seniors or disabled persons? A: Alabama may offer additional tax credits for seniors or disabled property owners. Contact the Monroe County Assessor's office for information about available programs and application requirements, as these typically require separate applications and qualification verification.

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 (Ad Valorem) Taxrevenue.alabama.gov
02
County
2025 Town & County Tax Ratesmonroecounty.gov
03
Tax Doc
Sales and Use Tax Rates - Alabama Department of Revenuerevenue.alabama.gov
04
Tax Doc
What is the timetable for property taxes?revenue.alabama.gov
05
Tax Doc
Tax Delinquent Property and Land Salesrevenue.alabama.gov
06
County
Monroe County Tax Collector: Homemonroecounty-fl.gov
07
Tax Doc
I am over 65. Do I have to pay property taxes?revenue.alabama.gov
08
WHEREAS, the City of Marathon, Florida (the "City") Comprehensive ...ci.marathon.fl.us
09
CHAPTER 270in.gov
10
The following document was not prepared by the Office of the ...osa.ms.gov
All sources verified as of 2025 Tax Year

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