Alabama vs Louisiana
Property Tax Comparison: Alabama vs. Louisiana
Introduction
Both Alabama and Louisiana levy property taxes at the local level, and the rates vary enough to affect homeowners’ annual expenses. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property‑tax rate is lower than Louisiana’s. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and indicate the types of residents for whom the comparison is most relevant.
Side‑by‑Side Metrics
| Metric | Alabama | Louisiana |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.55 % |
| Median home value | $195,100 | $208,700 |
| Median annual property tax | $738 | $1,146 |
| Property tax on a $250,000 home | $946 | $1,373 |
| Property tax on a $500,000 home | $1,892 | $2,746 |
| Median household income | $62,027 | $60,023 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Taxes?
- Winner (lower tax rate): Alabama
- Rate difference: 0.17 percentage points (Alabama’s 0.38 % vs. Louisiana’s 0.55 %), which represents a 31.11 % lower effective rate.
- Annual tax difference on a $250,000 home: $427 (Alabama $946 vs. Louisiana $1,373).
- Annual tax difference on a $500,000 home: $854 (Alabama $1,892 vs. Louisiana $2,746).
Why Alabama wins: The lower effective tax rate directly reduces the amount owed on any assessed property value. Consequently, both the median homeowner and owners of higher‑valued homes pay less in absolute dollars in Alabama than in Louisiana.
Who Is This Comparison Most Relevant For?
| Audience | Relevance |
|---|---|
| Current homeowners | Understanding the ongoing cost of ownership; lower taxes can improve cash flow. |
| Prospective homebuyers | Helps evaluate the total cost of purchasing a home in each state. |
| Retirees and fixed‑income households | Lower property taxes can lessen the burden on limited incomes, especially when combined with median household income figures. |
| Real‑estate investors | Tax differentials affect the net return on rental or resale properties. |
| Policy analysts | Provides a data‑driven snapshot of state‑level property‑tax environments. |
Summary
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is materially lower than Louisiana’s 0.55 %. The difference translates into $427–$854 less in annual tax liability for typical home values of $250 k and $500 k. Stakeholders who prioritize lower ongoing housing costs—such as homeowners, retirees, and real‑estate investors—may find Alabama’s tax environment more favorable.
For more detailed state‑specific information, see the dedicated pages: Alabama property tax and Louisiana 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.