Alabama vs Colorado
Property Tax Comparison: Alabama vs. Colorado
Intro
Both Alabama and Colorado levy property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property tax rate is lower than Colorado’s, resulting in smaller annual tax bills for comparable home values. The following sections present the key metrics side‑by‑side, identify the state with the lower rate, and outline which groups of taxpayers may find the comparison most relevant.
Side‑by‑Side Comparison
| Metric | Alabama | Colorado |
|---|---|---|
| Effective property tax rate | 0.38 % | 0.49 % |
| Median home value | $195,100 | $502,200 |
| Median annual property tax | $738 | $2,448 |
| Property tax on a $250,000 home | $946 | $1,219 |
| Property tax on a $500,000 home | $1,892 | $2,438 |
| Median household income | $62,027 | $92,470 |
Sources: “According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).”
Which State Wins on Property Tax Rate?
- Winner (lower tax rate): Alabama
- Tax‑rate difference: 0.11 percentage points, which is a 22.40 % lower rate than Colorado’s.
- Annual tax difference for a $250,000 home: $273 less in Alabama.
- Annual tax difference for a $500,000 home: $546 less in Alabama.
Why Alabama wins: The effective property tax rate of 0.38 % translates into lower dollar amounts for the same assessed property values compared with Colorado’s 0.49 % rate. Consequently, homeowners paying the same market price for a house will owe less in property taxes in Alabama.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding how property tax bills differ helps in budgeting for homeownership costs in each state. |
| Retirees considering relocation | Lower property taxes can reduce fixed‑income expenses; Alabama’s lower rate may be advantageous for retirees on limited budgets. |
| Real‑estate investors | Tax‑rate differentials affect cash‑flow projections; investors can use the data to compare operating costs across states. |
| Policy analysts / researchers | The side‑by‑side ACS data provide a baseline for evaluating fiscal policy impacts on households. |
The comparison is purely data‑driven and does not account for other tax categories (e.g., income tax), cost‑of‑living differences, or state‑specific exemptions that could influence overall affordability.
Additional Resources
- Detailed information on Alabama’s property tax structure: Alabama property tax
- Detailed information on Colorado’s property tax structure: Colorado property tax
Based on the most recent ACS estimates, the figures presented reflect median values and average rates; individual property tax bills may vary depending on local assessment practices and applicable exemptions.
Explore More Comparisons
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.