Alabama vs Maryland
Property Tax Comparison: Alabama vs. Maryland
Based on the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Introduction
Both Alabama and Maryland levy property taxes that fund local services such as schools, police, and infrastructure. The two states differ markedly in tax rates, home values, and median household incomes. The following side‑by‑side comparison shows how the two jurisdictions stack up against one another.
Side‑by‑Side Metrics
| Metric | Alabama | Maryland |
|---|---|---|
| Effective property tax rate | 0.38 % | 1.00 % |
| Median home value | $195,100 | $397,700 |
| Median annual property tax | $738 | $3,989 |
| Tax on a $250,000 home | $946 | $2,507 |
| Tax on a $500,000 home | $1,892 | $5,015 |
| Median household income | $62,027 | $101,652 |
Data source: According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Taxes?
Alabama has the lower effective property tax rate (0.38 % vs. 1.00 %).
- Rate difference: 0.62 % points, which is a 62.28 % lower rate than Maryland’s.
- Annual tax on a $250 k home: $946 in Alabama versus $2,507 in Maryland – a $1,561 difference.
- Annual tax on a $500 k home: $1,892 in Alabama versus $5,015 in Maryland – a $3,123 difference.
Because the tax burden is directly tied to the effective rate, Alabama consistently results in lower property‑tax payments for comparable home values. The lower median home value in Alabama also contributes to the smaller absolute tax amounts, but the primary driver of the disparity is the 0.62 % lower rate.
Who Might Find This Comparison Most Relevant?
| Audience | Relevance of Alabama’s Tax Structure | Relevance of Maryland’s Tax Structure |
|---|---|---|
| Current homeowners | May experience lower yearly tax bills, especially for modest‑valued properties. | Higher tax bills may be offset by higher home values and higher median incomes. |
| Prospective homebuyers | Lower tax rates can reduce total cost of ownership, making the state attractive for budget‑conscious buyers. | Higher tax rates increase ongoing costs; buyers must weigh against higher home equity potential. |
| Retirees | Lower property taxes can ease fixed‑income budgeting, particularly in areas with lower home values. | Higher taxes may be mitigated by Maryland’s generally higher income levels, but retirees on limited income could face a larger tax burden. |
| Real‑estate investors | Lower tax rates improve cash‑flow calculations for rental properties. | Higher taxes must be accounted for in return‑on‑investment analyses. |
| Policy analysts | Provides a case study of a low‑rate, low‑value market. | Offers insight into a higher‑rate environment paired with higher home values and incomes. |
Overall, the data suggest that Alabama’s property‑tax regime is more favorable for individuals seeking lower ongoing tax costs, whereas Maryland’s higher rates are paired with higher median incomes and home values, which may be acceptable for those prioritizing other factors such as proximity to metropolitan employment centers.
Further Reading
- Detailed information on Alabama’s property‑tax system: Alabama property tax
- Detailed information on Maryland’s property‑tax system: Maryland property tax
Based on the most recent ACS estimates, the figures above reflect statewide medians and rates; local variations may exist within each state.
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.