Alabama vs California
Alabama vs. California Property Tax Comparison (2023 ACS)
Intro
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama and California differ markedly in property‑tax burden, home values, and median household income. The two states represent opposite ends of the spectrum, with Alabama’s effective property‑tax rate well below the national average and California’s rate above it. The data below allow a direct, side‑by‑side comparison of the most relevant metrics for prospective homeowners, retirees, and other property owners.
Side‑by‑Side Comparison
| Metric | Alabama | California |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.71 % |
| Median home value | $195,100 | $695,400 |
| Median annual property tax | $738 | $4,926 |
| Tax on a $250,000 home | $946 | $1,771 |
| Tax on a $500,000 home | $1,892 | $3,542 |
| Median household income | $62,027 | $96,334 |
| Reference links | Alabama property tax | California property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax?
Based on the effective property‑tax rate, Alabama has the lower rate at 0.38 %, compared with California’s 0.71 %. The difference of 0.33 percentage points represents a 46.6 % lower rate in Alabama. Consequently, property owners in Alabama pay less in absolute dollars for comparable home values:
- On a $250,000 home, the annual tax in Alabama is $946, versus $1,771 in California – a difference of $825.
- On a $500,000 home, the annual tax in Alabama is $1,892, versus $3,542 in California – a difference of $1,650.
Therefore, Alabama “wins” in the context of lower property‑tax liability.
Who Is Likely to Benefit From This Comparison?
| Audience | Implications of the Data |
|---|---|
| Current or prospective homeowners | Lower tax rates in Alabama reduce ongoing housing costs, which can improve affordability, especially for buyers of median‑priced homes. |
| Retirees on fixed incomes | The smaller tax burden in Alabama may be more compatible with limited retirement resources, while California’s higher taxes could increase required cash flow. |
| Real‑estate investors | Investors focusing on cash‑on‑cash returns may find Alabama’s lower property taxes advantageous, though California’s higher home values could offset some tax differences. |
| Policy analysts or researchers | The contrast illustrates how state tax structures interact with home‑value markets and income levels, useful for comparative fiscal studies. |
The comparison is factual and does not prescribe a specific location; it simply highlights the quantitative differences that may influence decision‑making for the groups listed above.
Sources
- U.S. Census Bureau, 2023 American Community Survey (5‑year estimates) – property‑tax rates, median home values, and median household incomes.
- Internal reference pages: Alabama property tax and California property tax.
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate is substantially lower than California’s, resulting in lower annual tax payments across comparable home price points.
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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.