Alabama vs Arizona
Property Tax Comparison: Alabama vs. Arizona
Brief Overview
Both Alabama and Arizona levy property taxes to fund local services such as schools, public safety, and infrastructure. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property tax rate is lower than Arizona’s, resulting in smaller annual tax bills for comparable home values.
Side‑by‑Side Metrics
| Metric | Alabama | Arizona |
|---|---|---|
| Effective property tax rate | 0.38 % | 0.52 % |
| Median home value | $195,100 | $358,900 |
| Median annual property tax | $738 | $1,858 |
| Property tax on a $250,000 home | $946 | $1,294 |
| Property tax on a $500,000 home | $1,892 | $2,589 |
| Median household income | $62,027 | $76,872 |
Source: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Taxes?
Alabama records the lower effective property tax rate (0.38 % vs. 0.52 %).
- Rate difference: 0.14 percentage points, representing a 26.93 % lower rate than Arizona.
- Annual tax difference for a $250,000 home: $1,294 – $946 = $348.
- Annual tax difference for a $500,000 home: $2,589 – $1,892 = $697.
Because the comparison is based on the effective tax rate, Alabama is the “winner” in terms of lower property‑tax burden.
Who Might Benefit Most From This Comparison?
| Audience | Relevance of Alabama’s Lower Rate | Relevance of Arizona’s Higher Rate |
|---|---|---|
| Current Homeowners | Lower ongoing property‑tax costs may improve cash flow, especially for owners of higher‑valued homes. | Higher taxes may be offset by other state advantages (e.g., climate, job market). |
| Prospective Homebuyers | More affordable property‑tax bills can reduce total housing costs, making Alabama attractive for budget‑conscious buyers. | Buyers prioritizing other factors (e.g., climate, employment) may accept higher taxes. |
| Retirees | Fixed‑income retirees may prefer the lower tax burden in Alabama to stretch retirement income. | Retirees drawn to Arizona’s climate may weigh higher taxes against lifestyle benefits. |
| Investors | Lower taxes can increase net rental yields or capital‑gain after‑tax returns. | Higher taxes may be mitigated by stronger rental demand in certain Arizona markets. |
The comparison is purely fiscal; other state‑specific considerations (e.g., climate, cost of living, services) are not addressed here.
Further Reading
- Detailed information on Alabama’s property‑tax structure: Alabama property tax
- Detailed information on Arizona’s property‑tax structure: Arizona property tax
All figures reflect the most recent ACS estimates available at the time of writing.
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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.