36320 Property Tax Rate

Property owners in ZIP code 36320 (Cottonwood, Alabama) pay a median of $359/year in property taxes on homes valued at $130,700. This translates to an effective tax rate of 0.27%, which is 25% below the Alabama state average of 0.37%.

The monthly property tax burden for a median-valued home in 36320 is approximately $30, which factors into escrow payments on mortgages. This ZIP code is located within Houston County. This is $246 less than the Alabama average of $605/year.

Compared to similar ZIP codes in Alabama, 36320 has lower property taxes. ZIP codes with similar effective rates include 36750 (0.28%) and 36785 (0.28%).

In Cottonwood, property taxes represent approximately 0.8% of the median household income of $45,366, providing context for the relative tax burden on homeowners in this area.

Alabama does not cap annual assessment increases; reassessment to market value occurs at purchase, and subsequent growth follows the county appraisal schedule. Houston County offers a $4,000 Homestead Exemption for owner-occupants—submit your application to the Houston County Assessor's office with proof of residency and ownership. Register your exemption with Houston County Assessor within 30 days of closing to reduce your taxable base and lower your property tax liability.