35661 Property Tax Rate

Property owners in ZIP code 35661 (Muscle Shoals, Alabama) pay a median of $789/year in property taxes on homes valued at $189,700. This translates to an effective tax rate of 0.42%, which is 13% above the Alabama state average of 0.37%.

The monthly property tax burden for a median-valued home in 35661 is approximately $66, which factors into escrow payments on mortgages. This ZIP code is located within Colbert County.

Compared to similar ZIP codes in Alabama, 35661 has higher property taxes. ZIP codes with similar effective rates include 36207 (0.42%) and 35984 (0.42%).

In Muscle Shoals, property taxes represent approximately 1.2% of the median household income of $66,726, providing context for the relative tax burden on homeowners in this area.

Alabama has no statewide property tax cap; Colbert County reassesses at market value when you buy, and your tax liability resets based on the new valuation. Homeowners 65 and older with annual income below $12,500 can claim the Homestead Exemption ($5,000 off assessed value) through the Colbert County Assessor by year-end. Submit your homestead exemption application to the Colbert County Assessor immediately after closing to ensure the exemption is reflected in your first tax assessment.