2026 data · 0.39% property tax · Median home $172,800
Alabama Mortgage Calculator
A median-priced home in Alabama ($172,800) costs roughly $1,105 per month all-in (PITI), assuming 20% down and a 30-year fixed at 7.0%. Alabama's effective property tax rate is 0.39% — well below the US average of about 1.0%.
Alabama median-home monthly payment
$1,105/mo
P&I $920 · Tax $56 · Insurance $130
@ $172,800 price, 20% down, 30-yr fixed at 7.0%
For a custom calculation with your specific numbers (different down payment, rate, term, or home price), use the main mortgage calculator — it includes a full amortization schedule.
Monthly payments at common home prices in Alabama
| Home price | 20% down | P&I | Prop tax | Insurance | Total PITI/mo |
|---|---|---|---|---|---|
| $172,800 (state median) | $34,560 | $920 | $56 | $130 | $1,105 |
| $200,000 | $40,000 | $1,064 | $65 | $150 | $1,279 |
| $300,000 | $60,000 | $1,597 | $98 | $225 | $1,919 |
| $400,000 | $80,000 | $2,129 | $130 | $300 | $2,559 |
| $500,000 | $100,000 | $2,661 | $163 | $375 | $3,199 |
| $750,000 | $150,000 | $3,992 | $244 | $562 | $4,798 |
Calculations use Alabama's 0.39% effective property tax rate, estimated homeowners insurance at 0.90%/year of home value, 30-year fixed at 7.0%, no PMI (20% down). Closing costs not included.
Alabama property tax
Effective rate
0.39%
Median home value
$172,800
Median property tax
$658/yr
Alabama has the lowest effective property tax rate in the US (0.39%). Homestead exemption available for primary residences. No state transfer tax on real estate.
See our property tax calculator for a state-by-state property tax breakdown, and our Alabama paycheck calculator to estimate take-home pay against this monthly housing cost.
Alabama vs neighboring states
| State | Property tax rate | Median home | Median tax/yr | |
|---|---|---|---|---|
| Alabama (this page) | 0.39% | $172,800 | $658 | |
| Tennessee | 0.56% | $269,600 | $1,520 | Tennessee mortgage → |
| Georgia | 0.83% | $273,400 | $2,250 | Georgia mortgage → |
| Florida | 0.82% | $335,800 | $2,756 | Florida mortgage → |
| Mississippi | 0.65% | $140,200 | $872 | Mississippi mortgage → |
FAQs about Alabama mortgages
What is the property tax rate in Alabama?
Alabama's effective property tax rate is 0.39%, meaning the average homeowner pays roughly 0.39% of their home's value in property tax annually. On a $172,800 home (the state median), that's about $658 per year, or $55 per month added to your mortgage payment.
What is the average monthly mortgage payment in Alabama?
For a home at Alabama's median value of $172,800, assuming 20% down, a 30-year fixed mortgage at 7.0%, and Alabama's 0.39% property tax + estimated insurance, the typical monthly PITI payment is approximately $1,105. This includes $920 principal & interest, $56 property tax, and $130 homeowners insurance.
How much income do I need to buy a house in Alabama?
Using the standard 28% front-end DTI rule, you'd need annual income of approximately $47,357 to comfortably afford Alabama's median-priced home. Lenders typically allow up to 43% total DTI (including all debts), which corresponds to about $30,837 annual income at the maximum end. Your specific qualification depends on credit score, down payment, debts, and lender requirements.
Is Alabama a good state to buy a house?
Alabama's combination of 0.39% property tax (well below the national average of ~1.0%) and median home value of $172,800 make it one of the more affordable states for homeowners. Alabama has the lowest effective property tax rate in the US (0.39%).
How does Alabama property tax compare to neighboring states?
Alabama's 0.39% rate compares to: Tennessee at 0.56%, Georgia at 0.83%, Florida at 0.82%, Mississippi at 0.65%. Property taxes can differ substantially between bordering states — moving 30 miles across a state line can change your annual tax bill by thousands.
Does Alabama have a homestead exemption?
Alabama has the lowest effective property tax rate in the US (0.39%). Homestead exemption available for primary residences. No state transfer tax on real estate.
What's included in PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four standard components of a mortgage payment. For your Alabama mortgage, the breakdown on a median-priced home would be: Principal & Interest $920, Property Tax $56, Homeowners Insurance $130. Add PMI if your down payment is under 20%, and HOA fees if your home is in a community with one.