Huntsville and Madison property tax: rates, homestead and deadlines

Alabama property taxes are among the lowest in the country, but how much you pay near Redstone depends on which city you buy in, and the homestead paperwork has a hard December 31 deadline. Here's how the bill is calculated, current millage for Huntsville, Madison and the county, what new arrivals (including active-duty members with out-of-state licenses) need to file, and when the bill is due.

Bought a home this year? In Madison County you must have owned and lived in it on October 1, and you must apply by December 31. The exemption is not automatic.^[1]

How Alabama figures your bill

ADOR describes it in three steps:^[2]

1. Appraised value × assessment rate = assessed value. A single-family home you own and live in is Class III, assessed at 10%. Property that doesn't fit another class is Class II, at 20%.
2. Assessed value × millage = tax. One mill is $0.001, so 58 mills means $0.058 per dollar of assessed value.
3. Subtract exemptions, such as the homestead exemption.

Statewide, the Tax Foundation puts Alabama's effective property tax rate on owner-occupied homes at 0.37%.^[3]

Millage near Redstone Arsenal

We added up ADOR's published 2025 millage for each area (state, county, school and city parts).^[4] Our Huntsville and Madison totals match the vehicle tax rates Madison County publishes for those cities.^[5]

*$300,000 × 10% = $30,000 assessed value, times the millage. These are our sums of ADOR's line items, not official bills. Special districts and the part of Huntsville or Madison that lies in Limestone County can differ. Get your real number from the Madison County tax estimator.^[4,6]

Most of the difference between cities is school millage. Madison's city levy includes 33.5 mills for education and Huntsville's includes 22.0.^[4] Compare that with what each district offers in our schools guide, and compare commutes in neighborhoods near Redstone.

The homestead exemption

A homestead is a single-family home you own and live in as your primary residence, with up to 160 acres.^[7] In Madison County, it keeps the home in the 10% class and, according to the Tax Assessor, saves about $48 a year on top of that in most cases.^[1] The basic exemption (H-1) for owners under 65 who aren't disabled takes $4,000 of assessed value off the state portion and $2,000 off the county portion.^[1]

To apply in Madison County, bring the following to the Tax Assessor (Madison County Service Center, 1918 Memorial Parkway NW; (256) 532-3350), or file online:^[1]

• ☐ A copy of your deed with the correct address, legal description and names
• ☐ A driver's license showing the property address, issued on or before October 1
• ☐ If you change your license address between October 1 and December 31, also bring your homeowner's insurance policy and a utility "set date" letter from Huntsville Utilities ((256) 535-1200)
• ☐ If you still have a homestead on another home, a letter on letterhead from that county's tax official saying you no longer claim it
• ☐ If the home is in a trust, a copy of the trust

Active duty with an out-of-state license

This is the part that trips up military buyers. The Madison County Tax Assessor says that with an active-duty military ID, you can provide a homeowner's insurance policy and a Huntsville Utilities set date letter instead, and you don't necessarily have to change your driver's license.^[1] That matters because active-duty members can often keep a home-state license (see car registration and licenses).^[8]

Everyone else with an out-of-state license can get the 10% assessment rate with the insurance declaration page covering October 1 and the utility set date letter, then add the homestead exemption once their Alabama license shows the new address.^[1] New residents have to get that license within 30 days anyway.^[9]

Leaving and renting it out? If you PCS and rent the house, it may no longer qualify as owner-occupied. Alabama law requires owners to tell the assessor before January 1 when property stops qualifying for an exemption.^[1] Ask the assessor how your home will be classed.^[2]

Disabled veterans and owners 65 and older

• Permanently and totally disabled owners are exempt from all ad valorem taxes on their homestead, with no income limit (H-3). Proof can include a VA benefits verification letter or a Social Security award letter.^[1] Veterans claiming the exemption for a service-connected disability don't have to recertify every year. See leaving the military for the state rules.^[10]
• Age 65 and older: owners are exempt from the state portion of property tax. Owners whose income (with their spouse's) is $12,000 or less can get more. Bring proof of age and income. Handwritten tax returns aren't accepted.^[1]

When the bill is due

In Madison County, property taxes are due October 1. December 31 is the last day to pay in person or have a mailed payment postmarked. On January 1 taxes become delinquent, and fees and interest are added.^[11] If your mortgage has an escrow account, your servicer usually pays this for you. Check your escrow statement the first year, because a missed homestead filing shows up as a higher bill.

After December 31, the county mails delinquent notices. From April 1, it only accepts certified checks or cash for real estate taxes. Unpaid taxes go to the online tax lien sale in the first week of May.^[11] At closing, ask your closing attorney or title company how the year's taxes were split between you and the seller.

Homebuyer property tax checklist

1. Before you buy: estimate the tax with the county estimator for each city you're considering.^[6]
2. After closing: start utilities and ask Huntsville Utilities for a set date letter if you'll need one.^[1]
3. Within 30 days: get your Alabama license if you're required to.^[9]
4. By December 31: file for homestead in Madison County.^[1]
5. Every October: watch for the bill, or confirm escrow paid it.^[11]