Alabama— Property Tax & Closing Costs
2024 Census dataEffective tax rate
0.40%
of assessed value annually
Median home value
$299,200
2024 ACS survey
Median taxes paid
$1,185/yr
2024 data
Madison County's 0.40% effective property tax rate ranks 201st lowest among the 3,134 US counties tracked, placing it in the bottom 10% lowest nationally. Within Alabama's 67 counties, it's the 14th highest. On the county's median home value of $299,200, the typical homeowner pays $1,185 annually in property tax — $444 less than the national median of $1,629. At closing, Alabama's 0.10% combined real estate transfer tax adds roughly $299 on a median-priced home, typically paid by the seller. FEMA data shows 20.2% of the county's land area sits within a Special Flood Hazard Area — a high exposure level that may trigger mandatory flood insurance on mortgaged properties.
Calculate your true cost
Enter any purchase price to see the full cost breakdown for Madison County.
County median: $299,200
Leave at $0 if the property has no homeowners association.
LTV: 80.00%
At closing
Monthly ongoing
Year one
High flood risk. Flood insurance likely required by your lender. Verify the flood zone at msc.fema.gov.
All figures are estimates for planning purposes only. Mortgage payment assumes a 30-year fixed rate of 6.8% — your lender will confirm the actual rate. Closing costs vary by lender and transaction. Consult a licensed real estate attorney and lender before making any financial decisions.
Alabama property tax exemptions
Ways buyers in Madison County may reduce their annual property tax. These programs apply statewide; verify county specifics with your local assessor.
Standard Homestead Exemption
$4,000 off state property tax and $2,000 off county property tax for a single-family owner-occupied primary residence up to 160 acres (for homeowners under 65).
View official source →Senior / Disabled Full Exemption
Homeowners age 65+ with combined taxable income of $12,000 or less (most recent state return), and residents who are permanently and totally disabled or legally blind regardless of age or income, are fully exempt from all state, county, and city property taxes.
View official source →Specially Adapted Housing Veterans Exemption
Homes acquired through a VA Specially Adapted Housing Grant (for veterans or surviving spouses) are fully exempt from Alabama property tax regardless of value.
View official source →Last verified 2026-04. Exemption amounts and eligibility change frequently — always confirm with your county assessor before claiming.
Frequently asked questions
Answers to common questions about buying a home in Madison County.
The effective property tax rate in Madison County is 0.40% — calculated as the median annual property tax paid ($1,185) divided by the median home value ($299,200), using 2024 US Census ACS 5-year estimates. Your actual bill depends on your purchase price, homestead or senior exemptions, and any special assessments applied in your taxing district.
Alabama's combined real estate transfer tax is approximately 0.10% of the purchase price. On the median Madison County home value of $299,200, this adds roughly $299 at closing. Deed tax is $0.50/$500 (0.1%) paid by seller. Buyers also pay a $0.15/$100 (0.15%) mortgage recording tax on loan amount if financed — not included in buyer_rate since it applies to mortgage, not purchase price.
Partially. 20.2% of Madison County's land area lies within a FEMA Special Flood Hazard Area. Whether flood insurance is required depends on your specific property — check msc.fema.gov before making an offer.
Closing costs for a buyer in Madison County typically run $5,984–$14,960 (2–5% of purchase price) on a median-priced home, including title insurance ($800–$2,000), appraisal ($400–$700), home inspection ($350–$600), recording fees ($100–$300), and loan origination (0.5–1.0% of the loan amount). Use the calculator above for a specific estimate at your purchase price.
Data sources for Madison County
Every figure on this page is traceable. Verify the numbers yourself against the original public data.
Source for the 0.40% effective property tax rate, median home value, and median taxes paid (ACS 5-year, 2024 vintage).
Source for county-level flood zone exposure, wildfire risk, and other natural hazard ratings. Updated quarterly by FEMA.
Look up a specific property's flood zone and insurance rate map before making an offer on a home in Madison County.
Guides for Alabama home buyers
What every buyer should read before making an offer.
HOA Documents
HOA lawsuits — how to check for pending litigation against your future HOA before you close
A buyer closed on a house and only then found out about ongoing HOA lawsuits. Six checks you can run yourself before your contingencies expire.
Read the guide →HOA Documents
Undisclosed HOA special assessment — what you can do if you find out after closing
HOA special assessment not on the disclosure? One buyer got a $15,000 bill the day after closing. How to catch it before — and what to do after.
Read the guide →