Buying a home in Alabama

Property taxes, transfer taxes, home values and first-time buyer help in Alabama.

Effective property tax rate

0.38%

Median tax $788 ÷ median value $209,900 (ACS 2020–2024)

Typical home value

$241,613

Zillow ZHVI, 2026-08

State transfer tax

0.1%

Usually paid by: seller. Ala. Code § 40-22-1 (deed tax); § 40-22-2 (mortgage tax). Official source. Local taxes may add more.

Estimated buyer closing costs Estimate

$2,200–$4,000

On a $241,613 home: typical lender fees + title insurance + deed recording (TallyClose) + the buyer’s share of transfer/recording taxes. Excludes prepaids, escrow and local taxes.

At Alabama's effective rate of 0.38%, a typical $241,613 home would owe about $918/year ($77/month) in property taxes. Actual bills depend on your county, city and exemptions. Run your numbers.

First-time homebuyer programs

Alabama Housing Finance Authority

Your state housing finance agency offers down payment assistance and low-rate mortgages for eligible buyers. Visit Alabama Housing Finance Authority →

Sources: U.S. Census Bureau ACS 2020–2024 5-year (B25103, B25077); Zillow Home Value Index; TallyClose closing-cost dataset (CC BY 4.0), which cites each state statute; NCSHA HFA directory. Last updated 2026-10-15.