Alabama vs Illinois
Property Tax Comparison: Alabama vs. Illinois
Based on the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates)
Introduction
Both Alabama and Illinois levy property taxes that fund local services such as schools, police, and road maintenance. The most recent ACS data show a marked difference in effective tax rates, median home values, and the resulting annual tax bills. This article presents the key figures side‑by‑side and identifies which state has the lower property tax burden.
Side‑by‑Side Comparison
| Metric | Alabama | Illinois |
|---|---|---|
| Effective property tax rate | 0.38 % | 2.07 % |
| Median home value | $195,100 | $250,500 |
| Median annual property tax | $738 | $5,189 |
| Tax on a $250,000 home | $946 | $5,179 |
| Tax on a $500,000 home | $1,892 | $10,357 |
| Median household income | $62,027 | $81,702 |
| Relevant pages | Alabama property tax | Illinois property tax |
All figures are taken from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Property Tax Burden?
Winner (lower effective tax rate): Alabama
- Tax‑rate difference: 2.07 % − 0.38 % = 1.69 percentage points, which corresponds to an 81.74 % lower rate in Alabama.
- Annual tax difference on a $250,000 home: $5,179 − $946 = $4,233.
- Annual tax difference on a $500,000 home: $10,357 − $1,892 = $8,465.
Because the effective property tax rate is substantially lower in Alabama, the overall property‑tax liability is also lower, even when median home values are taken into account.
Who Might Find This Comparison Most Relevant?
| Audience | Why the Data Matter |
|---|---|
| Current or prospective homeowners | Property‑tax expense directly affects monthly housing costs and total ownership cost. Lower rates in Alabama reduce the ongoing tax burden. |
| Retirees | Fixed or limited incomes make property‑tax levels a significant factor in affordability; Alabama’s lower median tax ($738) may be more manageable than Illinois’s ($5,189). |
| Real‑estate investors | The disparity in tax rates influences cash‑flow calculations. Investors buying comparable‑value properties will face higher annual taxes in Illinois. |
| Policy analysts / local‑government researchers | The contrast illustrates how state‑level tax structures translate into household‑level costs, useful for comparative fiscal studies. |
All groups should also consider other fiscal variables (e.g., state income tax, sales tax, service levels) when evaluating overall cost of living.
Summary
According to the U.S. Census Bureau’s 2023 ACS estimates, Alabama’s effective property tax rate of 0.38 % is considerably lower than Illinois’s 2.07 %. This results in a median annual tax bill that is roughly $4,450 less in Alabama for a typical home, and a per‑home‑value tax gap of $4,233 (for a $250 k home) to $8,465 (for a $500 k home). Consequently, Alabama provides the lower property‑tax environment for homeowners, retirees, and investors compared with Illinois.
All data reflect the most recent ACS estimates and are presented without editorial interpretation.
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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.