Alabama vs Georgia
Property‑Tax Comparison: Alabama vs. Georgia
Intro
Both Alabama and Georgia 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), the two states differ substantially in effective tax rates, median home values, and the resulting annual tax bills. This article presents the key figures side‑by‑side, identifies which state has the lower property‑tax burden, and notes the types of homeowners for whom the comparison is most relevant.
Side‑by‑Side Comparison Table
| Metric (2023 ACS) | Alabama | Georgia |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.81 % |
| Median home value | $195,100 | $272,900 |
| Median annual property tax | $738 | $2,214 |
| Property tax on a $250,000 home | $946 | $2,028 |
| Property tax on a $500,000 home | $1,892 | $4,057 |
| Median household income | $62,027 | $74,664 |
Sources: Alabama property tax, Georgia property tax; data drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax?
Winner (lower tax rate): Alabama
- Rate difference: 0.43 percentage points, which is a 53.37 % lower effective rate than Georgia’s.
- Annual tax difference on a $250,000 home: $2,028 (GA) − $946 (AL) = $1,082.
- Annual tax difference on a $500,000 home: $4,057 (GA) − $1,892 (AL) = $2,165.
Because the effective property‑tax rate is the primary driver of the annual levy, Alabama’s lower rate translates directly into lower tax bills across comparable home values.
Who Is This Comparison Most Relevant For?
| Audience | Why the comparison matters |
|---|---|
| Current or prospective homeowners | The effective tax rate determines the ongoing cost of owning a home. Buyers comparing similar‑priced properties in the two states can use the table to estimate annual tax expenses. |
| Retirees | Fixed‑income retirees often prioritize lower recurring expenses. A lower property‑tax rate, as found in Alabama, can reduce the overall cost of staying in a home. |
| Real‑estate investors | Investment calculations (cash‑on‑cash return, cap rate) require accurate tax estimates. The 53 % rate advantage in Alabama may improve net operating income for comparable assets. |
| Policy analysts & local officials | The data illustrate how state‑level tax structures interact with home‑value markets, useful for benchmarking fiscal policy. |
Summary
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is substantially lower than Georgia’s 0.81 %. The rate gap produces annual tax savings of roughly $1,100 on a $250 k home and $2,200 on a $500 k home. Homeowners, retirees, and investors seeking lower recurring property‑tax costs may find Alabama’s tax environment more favorable, while the higher median home values and household incomes in Georgia suggest a different overall affordability context. All figures are derived from U.S. Census Bureau data and reflect the 2023 American Community Survey (5‑year) averages.
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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.