Alabama vs Delaware
Property‑Tax Comparison: Alabama vs. Delaware
Introduction
Both Alabama and Delaware 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 Delaware’s, while home values and median household incomes differ between the two states. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and outline which types of taxpayers may find the comparison most relevant.
Side‑by‑Side Metrics
| Metric | Alabama | Delaware |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.53 % |
| Median home value | $195,100 | $326,800 |
| Median annual property tax | $738 | $1,731 |
| Property tax on a $250,000 home | $946 | $1,324 |
| Property tax on a $500,000 home | $1,892 | $2,649 |
| Median household income | $62,027 | $82,855 |
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 rate): Alabama
- Rate difference: 0.15 percentage points (Alabama 0.38 % vs. Delaware 0.53 %), representing a 28.58 % relative difference.
- Annual tax difference on a $250,000 home: $378 less in Alabama.
- Annual tax difference on a $500,000 home: $757 less in Alabama.
Why Alabama wins: The effective property‑tax rate of 0.38 % is lower than Delaware’s 0.53 %. Because the rate is applied to the assessed value of a property, the lower percentage translates directly into lower annual tax bills for comparable home values.
For more detail on each state's tax structure, see the dedicated pages:
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding the tax burden associated with different home price levels helps in budgeting and evaluating overall affordability. |
| Retirees and fixed‑income households | Lower property taxes can reduce recurring expenses, making Alabama potentially more attractive for those relying on limited income. |
| Real‑estate investors | The tax differential influences net operating income and cash‑flow projections for investment properties. |
| Policy analysts and local officials | The data provide a baseline for assessing the impact of tax policy relative to median incomes and home values. |
The comparison is purely fiscal; it does not address other factors such as state income taxes, sales taxes, or quality of public services, which may also affect overall cost of living.
Summary
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate (0.38 %) is lower than Delaware’s (0.53 %). This rate gap results in lower annual taxes for equivalent home values—$378 less on a $250,000 home and $757 less on a $500,000 home. Homeowners, retirees, and investors who prioritize a lower property‑tax burden may find Alabama more favorable, while other considerations (e.g., higher median home values or household incomes in Delaware) remain outside the scope of this tax‑rate comparison.
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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.