When buying a home, most people only consider the home price. However, in the U.S., property tax is just as important as the home price.

This is especially true for families with children, as it's good to know where property taxes are spent. It turns out that the property taxes we pay are often directly linked to the budgets of the public schools our children attend.

The organization that operates public schools in Montgomery, Alabama, is Montgomery Public Schools (MPS). Currently, about 26,000 students are educated across 52 schools, and the school district headquarters is located at 632 S. Union Street, Building C, Montgomery, Alabama. The annual operating budget is approximately $380 million, primarily funded by state and federal grants, as well as local property taxes.

One key point to note is property tax. Alabama is known for having very low property taxes in the U.S. Montgomery County also has an effective property tax rate of about 0.44%, which is significantly lower than the national average of about 1.09%. While this means lower tax burdens for homeowners, it also means that local governments have relatively less funding for education.

To secure educational funding, Montgomery County imposes an additional 3.5 mills for educational purposes on top of the basic property tax. This tax was reapproved in a 2024 referendum and is used for operating public schools and maintaining facilities. In the U.S., one mill represents $1 for every $1,000 of assessed value, not 0.1% of the tax base, so the actual tax is calculated based on the assessed value of the home. Additionally, Alabama uses assessment ratios based on housing types rather than the overall market price, which further lowers the actual burden.

Inquiries related to property taxes are handled by the Montgomery County Revenue Commissioner, located at 375 South Ripley Street, Montgomery, AL, with a main phone number of (334) 832-4950. Before purchasing a home, it's advisable to check how the current property tax and assessed value are determined for that property.

So, does a lower property tax mean lower school quality? To some extent, yes. Montgomery Public Schools' general public schools are not considered among the top performers in academic achievement assessments nationwide. However, there are exceptions. Notably, magnet schools like LAMP (Loveless Academic Magnet Program) receive excellent evaluations nationally and have strong college admission rates. This means that the school district is providing high-quality educational opportunities to outstanding students through magnet programs, even with limited finances.

Ultimately, when choosing a home, one should not decide solely based on low property taxes. While lower taxes may reduce monthly burdens, they can also impact the financial resources and educational environment of local public schools. If considering your children's education, it would be much wiser to look into not only the general school district of the area you plan to live in but also the availability of magnet school support.