Alabama vs District Of Columbia
District of Columbia
Property‑Tax Comparison: Alabama vs. District of Columbia
Intro
Both Alabama and the District of Columbia levy property taxes that fund local services, but the two jurisdictions differ markedly in tax rates, home values, and household incomes. Using the same source—the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates)—the figures below allow a direct side‑by‑side comparison.
Side‑by‑Side Metrics
| Metric | Alabama | District of Columbia |
|---|---|---|
| Effective property tax rate | 0.38 % | 0.58 % |
| Median home value | $195,100 | $724,600 |
| Median annual property tax | $738 | $4,180 |
| Property tax on a $250,000 home | $946 | $1,442 |
| Property tax on a $500,000 home | $1,892 | $2,885 |
| Median household income | $62,027 | $106,287 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which Jurisdiction Has the Lower Tax Burden?
- Winner (lower effective tax rate): Alabama
- Rate difference: 0.20 percentage points (Alabama’s 0.38 % vs. DC’s 0.58 %), which represents a 34.43 % lower effective rate in Alabama.
- Annual tax difference on a $250,000 home: $496 (Alabama $946 – DC $1,442).
- Annual tax difference on a $500,000 home: $993 (Alabama $1,892 – DC $2,885).
Why Alabama wins: The lower effective property‑tax rate directly reduces the amount owed on any given property value. Even when applied to the same home price, Alabama’s taxes are lower because the rate (0.38 %) is smaller than DC’s 0.58 %.
Who Might Benefit From This Comparison?
| Audience | Potential impact of lower property tax (Alabama) | Potential impact of higher property tax (DC) |
|---|---|---|
| Homeowners (existing or prospective) | Lower annual tax bills can reduce total housing costs, especially for mid‑range homes ($250k–$500k). | Higher taxes may be offset by higher home values and incomes, but the cash outlay for taxes is larger. |
| Retirees on fixed incomes | Reduced tax liability can be significant given the lower median household income in Alabama. | Higher tax payments may represent a larger share of a retiree’s budget, though DC’s higher median income may mitigate this for some. |
| Real‑estate investors | Lower property‑tax expense improves cash‑flow projections for rental properties. | Higher taxes increase operating expenses, which must be accounted for in investment analyses. |
| First‑time buyers | Lower median home values combined with lower taxes may improve affordability. | Higher home values and taxes raise the overall cost of entry. |
The comparison is most relevant to individuals evaluating property‑tax costs as part of a broader financial decision, such as buying a home, relocating, or investing in real estate.
Summary
Based on U.S. Census Bureau data and the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is lower than the District of Columbia’s 0.58 %. Consequently, property owners in Alabama pay less in absolute dollars on comparable home values. The lower tax burden may be advantageous for homeowners, retirees, and investors seeking to minimize ongoing housing expenses.
For more detailed information on each jurisdiction’s tax structure, see the dedicated pages: Alabama property tax and District of Columbia property tax.
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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.