Question 1

What is the property tax rate in Alabama?

Accepted Answer

Alabama's median effective property tax rate is 0.40% of home value as of April 2026. Lowest median property tax in the US.

Question 2

Does Alabama charge transfer tax on home sales?

Accepted Answer

Yes. Alabama charges 0.10% state transfer tax on home sales. $0.50 per $500 of value = 0.10%. Typically paid by the seller.

Question 3

Does Alabama have state income tax on capital gains?

Accepted Answer

Yes. Alabama taxes capital gains as ordinary income at a top marginal rate of 5.00%.

Question 4

What's the maximum security deposit a landlord can charge in Alabama?

Accepted Answer

Alabama caps security deposits at 1 month of rent.  Deposits must be returned within 60 days of move-out.

Question 5

How much notice does a landlord in Alabama need to give before eviction for non-payment?

Accepted Answer

Alabama requires 7 days' notice for non-payment of rent. Lease violation notice: 7 days.

Alabama Real Estate — Complete Guide

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