Property taxes in Alabama are due on October 1 each year and must be paid by December 31 to avoid delinquency.1Alabama Legislature. Alabama Code 40-11-4 – When Taxes Become Due and Payable The bill covers a tax year that has already ended, so you are always paying in arrears. Any balance still outstanding on January 1 is classified as delinquent, and interest begins accruing from the original October 1 due date.
The October to December Payment Window
Alabama’s property tax year runs October 1 through September 30. When that year closes, the county calculates your bill based on the property’s value as of the preceding October 1, then issues it for the new cycle starting October 1. You have three months to pay without penalty. December 31 is the hard deadline statewide, and it applies regardless of property type: residential, commercial, agricultural, or manufactured home.
If you bought the property partway through the year, read the bill carefully. State law requires the tax bill be issued in the name of whoever owned the property on the previous October 1, so the statement may arrive addressed to the seller. You are still legally responsible for payment as the current owner. Do not assume the closing handled it unless your settlement documents say so.
How to Pay Before December 31
Your county revenue commissioner or tax assessor mails the bill in the fall. It lists appraised value, assessed value, millage rate, exemptions applied, and a Parcel Identification Number you will need for most payment methods.
Online
Most counties run an online portal that accepts credit card and electronic check payments. Enter your PIN to pull up the balance. Credit card convenience fees generally run around 2.5% to 3% of the payment plus a small transaction fee, charged by the processor rather than the county. For a large bill, electronic check is usually the cheaper option.
By Mail
Checks and money orders go to the address printed on the bill, typically the county tax collector. Alabama treats the U.S. Postal Service postmark as the date of payment, so a check postmarked December 31 counts as timely even if it arrives in January.2Alabama Legislature. Alabama Code 40-1-45 – Timely Mailing Treated as Timely Filing and Paying The postmark has to be legible. Metered stamps from a private postage machine can create disputes, so a counter postmark from the post office is safer when you are close to the deadline.
In Person
County courthouses and satellite offices take payments during business hours. Staff can resolve balance questions or exemption issues on the spot. Lines in late December get long. Going in October or November eliminates the risk of a last-minute problem keeping you from paying on time.
What Happens If You Miss December 31
Starting January 1, interest accrues on the unpaid balance. Under Alabama Code ยง 40-1-44, the rate is tied to the federal underpayment rate set by the U.S. Secretary of the Treasury, which adjusts quarterly.3Alabama Legislature. Alabama Code 40-1-44 – Interest on Delinquent Taxes Interest runs from the original October 1 due date, not from January 1, so the clock has effectively been ticking the whole time.
Counties then add administrative fees for processing the delinquency: certified mail, newspaper advertising, and collection costs. The amounts vary by county, and none of these charges are negotiable at the local level. They are part of the statutory collection process.
If the balance stays unpaid, the county eventually sells the tax lien at public auction. That is where the consequences stop being about fees.
Tax Lien Sale and the Three-Year Redemption Window
At the auction, a third-party buyer pays off your delinquent taxes and receives a certificate that lets them collect from you with interest. You do not immediately lose the property.
Alabama gives you three years from the date of the tax sale to redeem.4Alabama Legislature. Alabama Code 40-10-120 – When and by Whom Land May Be Redeemed Redemption means paying the tax collecting official the delinquent taxes, interest, penalties, fees, and any additional taxes the certificate holder has paid on your behalf, plus 12% annual interest.5Alabama Department of Revenue. Do I Have the Option to Redeem My Tax Delinquent Property The right to redeem extends to the owner, heirs, any mortgagee, and anyone else with a legal or equitable interest in the property.
If three years pass without redemption, the certificate holder can petition for a tax deed. A tax deed does not automatically give them clean title, and they still have to pursue a quiet title action, but your statutory right to reclaim the property through the county office is gone. After that, any deal to get the property back is a private negotiation with the certificate holder, who has no obligation to sell at a reasonable price.
Minors and individuals with certain legal disabilities get extra time: they can redeem within one year after the disability is removed, even if the three-year window has already closed.4Alabama Legislature. Alabama Code 40-10-120 – When and by Whom Land May Be Redeemed
Homestead Exemption Filing Shares the Same Deadline
December 31 is also the deadline to file an initial homestead exemption application for the tax year, and the property must have been your principal residence as of October 1.6Alabama Department of Revenue. Homestead Exemptions You only apply once; the exemption stays with the property until you move or your eligibility changes. Different categories exist for age, disability, and income, with the most generous version eliminating state, county, and municipal tax entirely for qualifying seniors or anyone permanently and totally disabled. Applications go through your county revenue commissioner or tax assessor.
An Appeal Does Not Pause the Payment Deadline
If you are challenging your property’s assessed value, do not let the appeal process trick you into missing December 31. An unpaid bill becomes delinquent on January 1 regardless of any pending dispute. To preserve the right to appeal a board of equalization decision to circuit court, you must either pay the taxes by December 31 or post a bond with the circuit court for double the tax amount.7Alabama Legislature. Alabama Code 40-3-25 – Appeals Procedure The one timing exception: if the board has not issued its final ruling by November 30, you get 30 days from the decision to pay without penalty or file the circuit court appeal.
Business Personal Property
Business owners face the same December 31 payment deadline for personal property used in the business, including equipment, furniture, fixtures, and inventory.8Alabama Department of Revenue. Personal Property Alabama is a situs state, meaning any personal property physically located in Alabama on October 1 is taxable regardless of where the business is headquartered. There is an added step: a personal property return listing all taxable assets has to be filed with the county between October and December. Missing the payment deadline triggers the same penalties, fees, and eventual lien process as unpaid real estate tax.