Coming from Missouri and Your Property Taxes in Alabama Are What?!?

We see it happen on almost every closing with a Missouri buyer. Somewhere between the offer and the closing table, they look at the estimated property tax line, look up, and ask us to double check it. Surely a number that small is a typo.

It is not a typo. Alabama property taxes really are that low. Welcome to Baldwin County.

What that looks like in real dollars

Say you sell a home in Florissant or St. Peters and buy a $300,000 primary residence in Gulf Shores.

That is not a rounding difference. Over a 30 year mortgage, the gap adds up to serious money.

Why Alabama property taxes are so low

Two things drive it, and they are written into how the state calculates your bill.

The 10 percent assessment ratio. Alabama only taxes owner occupied homes on 10 percent of their market value, a structure set out by the Alabama Department of Revenue. Your $300,000 home in Gulf Shores has a taxable assessed value of just $30,000. Missouri assesses residential property at 19 percent of market value, nearly double.

Low millage rates. The local tax rates applied to that assessed value are modest. Gulf Shores currently levies about 33 mills and Orange Beach about 32 mills. Multiply it out and the math stays small.

Alabama also offers a homestead exemption on your primary residence, with expanded tiers for homeowners 65 and older. Some qualifying seniors with limited income pay no property tax at all on their homestead.

The fine print Missouri transplants should know

A few honest caveats, because a low tax bill has context.

Second homes and rentals are assessed differently. If you are buying a beach condo as an investment property or rental, it is assessed at 20 percent of market value instead of 10 percent, so plan on roughly double the tax bill of a primary residence.

You have to claim your homestead exemption. It is not automatic. You file with the Baldwin County Revenue Commission after closing, and it applies to your primary residence only.

Lower property taxes fund a different mix of services. Alabama leans more on sales taxes than Missouri does. School funding, road maintenance, and local services are structured differently here than what you knew in St. Louis County or St. Charles County. That is not a reason to stay away. It is just worth understanding what you are trading.

One bright spot on vehicles. Missouri is one of the states with a meaningful annual personal property tax on cars. If you dreaded that bill every December, Alabama’s vehicle taxes will feel like a relief too.

The bottom line

If you are relocating from the St. Louis area to the Alabama Gulf Coast, your Alabama property taxes will run a fraction of what you paid in Missouri, often two thirds less or more. It is one of the biggest and least talked about financial advantages of the move.

Rates, millages, and exemptions change, and every property is different, so verify your specific numbers with the Baldwin County Revenue Commission and talk with a tax professional about your situation.

Rates and figures in this article were verified in July 2026.

Thinking about making the move from Missouri to the Gulf Coast? Browse our featured listings in both markets, and reach out when you are ready. We can help you sell in St. Louis and buy in Baldwin County with one team that knows both sides of the trip.

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