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How Are Property Taxes in Orange Beach, Alabama Compared to Gulf Shores, Alabama?

In Orange Beach and Gulf Shores, property taxes can vary slightly, but both towns benefit from Alabama’s overall low tax rates. Alabama has some of the lowest property taxes in the country, around a quarter of the national average, making property ownership more affordable.

In the state of Alabama, property tax is based on three key factors:

1. Exemptions: Certain properties or homeowners, such as those over the age of 65 or disabled, may qualify for exemptions, reducing the amount of taxes owed.
2. Millage Rate: This is the amount you pay per $1,000 of assessed property value.
3. Property Classification: Residential properties are taxed differently than commercial properties, with commercial and rental properties generally paying more.

In Baldwin County, the millage rate includes taxes for the state, county, schools, and municipalities. In Orange Beach and Gulf Shores, the total millage rate is 33.0 mills (or 0.033), while for Baldwin County, the combined state, county, and school tax rate is 28 mills. A mill equals $1 of tax for every $1,000 of assessed value.

You can calculate your Alabama property tax using the Baldwin County Property Tax Calculator.

2. How Are Property Taxes Calculated?

Property taxes in Alabama are calculated based on the assessment rate and the property’s classification:

• Owner-occupied homes have an assessment rate of 10%. For example, if your home is valued at $300,000, the tax is based on 10% of that value, or $30,000. In Gulf Shores, with a total millage rate of 33.0, your property tax would be calculated as 0.033 times $30,000, resulting in $990 in annual taxes.

• Commercial properties, including rental homes, have a higher assessment rate of 20%. If you own a rental property valued at $300,000, the tax would be based on 20% of the value, or $60,000. Using the same millage rate of 33.0, your annual taxes would be about $1,980.

All property taxes are due on October 1 each year and become delinquent after December 31.

3. How Property Taxes Impact Orange Beach vs. Gulf Shores

Both Orange Beach and Gulf Shores follow similar property tax structures, but there are slight differences in the total taxes paid due to property values:

• In Orange Beach, where property values are typically higher (especially for luxury and waterfront homes), residents may pay slightly more in property taxes, even though the tax rates are comparable. This is because the assessed value of homes tends to be higher, leading to a larger tax bill.

• Gulf Shores generally has more affordable homes, meaning residents may pay a bit less in property taxes, even with the same millage rate of 33.0 mills.

4. What Does Orange Beach Offer That Gulf Shores Doesn’t?

While both towns offer excellent Gulf Coast living, Orange Beach has a few extra amenities that can increase property values and slightly affect property taxes:

• Exclusive Gated Communities: Orange Beach is home to high-end, gated neighborhoods like Ono Island, where property values are higher due to the exclusivity, privacy, and luxurious amenities.

• More Recreational Amenities and Services: Orange Beach also offers enhanced public safety, fire services, and recreational facilities that contribute to higher property values and may slightly influence property taxes.

Summary

• Alabama has some of the lowest property taxes in the U.S., making both Orange Beach and Gulf Shores attractive locations for homeownership. Despite the low taxes, they remain an essential source of revenue for local governments, public services, and education.

• Property taxes are calculated based on three factors: Exemptions, the Millage Rate, and Property Classification. In Orange Beach and Gulf Shores, the total millage rate is 33.0 mills, while Baldwin County’s rate is 28 mills for state, county, and schools.

• Taxes are based on the assessment rate: 10% for owner-occupied homes and 20% for commercial properties, including rental homes. Commercial properties typically pay more due to the higher assessment rate.

To calculate your specific Alabama property tax, visit the Baldwin County Revenue Commission website.

If you need more help or have any questions about navigating property taxes or real estate in Orange Beach or Gulf Shores, feel free to reach out!

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