Alabama vs Alaska
Alabama vs. Alaska Property Tax Comparison (2023 ACS)
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), the two states differ markedly in property‑tax burden, home values, and median household income. The following sections present the data side‑by‑side, identify which state has the lower effective property‑tax rate, and outline the groups for whom the comparison may be most relevant.
Side‑by‑Side Metrics
| Metric | Alabama | Alaska |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 1.14 % |
| Median home value | $195,100 | $333,300 |
| Median annual property tax | $738 | $3,785 |
| Tax on a $250,000 home | $946 | $2,839 |
| Tax on a $500,000 home | $1,892 | $5,678 |
| Median household income | $62,027 | $89,336 |
All figures are drawn from the U.S. Census Bureau’s 2023 ACS (5‑year) data.
Which State Has the Lower Property‑Tax Burden?
- Winner (lower effective rate): Alabama
- Rate difference: 0.76 percentage points (Alaska’s rate is 66.69 % higher than Alabama’s).
- Annual tax difference on a $250,000 home: $1,893 (Alaska $2,839 – Alabama $946).
- Annual tax difference on a $500,000 home: $3,786 (Alaska $5,678 – Alabama $1,892).
Why Alabama wins: The effective property‑tax rate of 0.38 % in Alabama is less than one‑third of Alaska’s 1.14 %, resulting in consistently lower property‑tax payments across the price points shown.
For more detailed state‑specific information, see the internal pages:
Who Might Find This Comparison Most Useful?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Property‑tax rates directly affect monthly housing costs. Homebuyers seeking lower ongoing tax expenses will see Alabama’s rates as comparatively favorable. |
| Retirees on fixed incomes | Lower property taxes can reduce the cost of maintaining a primary residence, making Alabama potentially more affordable for retirees whose income is closer to the median ($62,027) than Alaska’s higher median ($89,336). |
| Investors evaluating rental properties | Effective tax rates influence net operating income. Investors may prefer Alabama for lower tax overhead, assuming other market factors (rental demand, appreciation) are comparable. |
| Policy analysts and researchers | The stark contrast in rates and median home values offers a clear case study of how state tax policies intersect with housing affordability and income levels. |
The comparison does not address other fiscal considerations such as sales taxes, income taxes, or public service levels, which may also influence decision‑making.
Sources
- U.S. Census Bureau, 2023 American Community Survey (5‑year estimates). Data accessed for effective property‑tax rates, median home values, median annual property taxes, tax amounts on $250 k and $500 k homes, and median household income.
All calculations are based on the figures provided by the ACS. No additional assumptions have been applied.
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Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.