Alabama vs Indiana
Property‑Tax Comparison: Alabama vs. Indiana
Both Alabama and Indiana levy property taxes at the county and municipal levels, but the overall burden on homeowners differs noticeably. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property‑tax rate is 0.38 %, while Indiana’s is 0.74 %. The following sections present the key metrics side‑by‑side, identify the lower‑tax state, and outline which types of residents may find the comparison most relevant.
Side‑by‑Side Metrics
| Metric | Alabama | Indiana |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.74 % |
| Median home value | $195,100 | $201,600 |
| Median annual property tax | $738 | $1,496 |
| Property tax on a $250,000 home | $946 | $1,855 |
| Property tax on a $500,000 home | $1,892 | $3,711 |
| Median household income | $62,027 | $70,051 |
Sources: “According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).”
Which State Has the Lower Tax Burden?
Winner (lower effective rate): Alabama
- Tax‑rate difference: 0.36 percentage points, which is a 49.02 % lower rate than Indiana’s.
- Annual tax difference on a $250k home: $909 less in Alabama.
- Annual tax difference on a $500k home: $1,819 less in Alabama.
The lower effective rate translates directly into lower annual payments for comparable property values, as shown in the table above. For example, a homeowner with a $250,000 house would pay $946 in Alabama versus $1,855 in Indiana, a difference of $909 per year.
Who Is This Comparison Most Relevant For?
| Audience | Why the data matters |
|---|---|
| Current or prospective homeowners | Determines the ongoing cost of owning a home in each state. |
| Retirees on fixed incomes | A lower property‑tax burden can reduce overall living expenses, especially when combined with median household‑income figures. |
| Real‑estate investors | Understanding the tax differential helps assess cash‑flow projections for rental properties. |
| Relocating families | Property taxes affect total housing affordability alongside median home values and incomes. |
The comparison is factual and does not incorporate state‑level deductions, exemptions, or other local tax nuances that could further affect individual liability.
Further Reading
- Detailed information on Alabama’s property‑tax structure: Alabama property tax
- Detailed information on Indiana’s property‑tax structure: Indiana property tax
Based on the most recent ACS estimates, Alabama imposes a lower effective property‑tax rate than Indiana, resulting in smaller annual payments for comparable home values.
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.