Alabama vs Massachusetts
Property‑Tax Comparison: Alabama vs. Massachusetts
Intro
Both Alabama and Massachusetts levy property taxes that fund local services such as schools, police, and infrastructure. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), the two states differ markedly in effective tax rates, median home values, and the resulting annual tax bills. This article presents a side‑by‑side factual comparison and identifies which state imposes the lower property‑tax burden.
Side‑by‑Side Comparison
| Metric | Alabama | Massachusetts |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 1.11 % |
| Median home value | $195,100 | $525,800 |
| Median annual property tax | $738 | $5,813 |
| Tax on a $250,000 home | $946 | $2,764 |
| Tax on a $500,000 home | $1,892 | $5,528 |
| Median household income | $62,027 | $101,341 |
| Reference link | Alabama property tax | Massachusetts property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 ACS 5‑year estimates.
Who Wins on Property‑Tax Burden?
Alabama wins the comparison because it has the lower effective property‑tax rate (0.38 % vs. 1.11 %).
- Rate difference: 0.73 percentage points, which is a 65.78 % lower rate than Massachusetts.
- Annual tax on a $250,000 home: $946 in Alabama versus $2,764 in Massachusetts – a difference of $1,818.
- Annual tax on a $500,000 home: $1,892 in Alabama versus $5,528 in Massachusetts – a difference of $3,636.
Based on the most recent ACS estimates, a homeowner would pay roughly one‑third of the property tax in Alabama compared with Massachusetts for comparable home values.
Which Audiences Benefit Most from This Comparison?
| Audience | Relevance of Alabama’s Lower Tax Rate | Relevance of Massachusetts’s Higher Tax Rate |
|---|---|---|
| Current homeowners | May experience a smaller annual tax bill, especially on higher‑valued properties. | Face higher annual taxes, which can affect cash flow and long‑term affordability. |
| Prospective homebuyers | Lower tax rates can reduce total cost of ownership, making Alabama more attractive for budget‑conscious buyers. | Higher taxes may be offset by higher median incomes and public services; important for buyers prioritizing those factors. |
| Retirees | Lower property taxes can help stretch fixed retirement incomes. | Higher taxes may require a larger retirement budget or a higher‑value home to justify amenities. |
| Investors | Lower tax expenses can improve net rental yields. | Higher taxes increase operating costs; investors need to consider whether higher service levels justify the expense. |
The data are purely descriptive; individuals should also consider other fiscal factors (state income tax, sales tax, cost of living) when evaluating overall affordability.
Summary
- Effective property‑tax rate: Alabama 0.38 % vs. Massachusetts 1.11 %
- Median annual tax: $738 (AL) vs. $5,813 (MA)
- Tax on typical home values: Substantially lower in Alabama for both $250 k and $500 k properties
According to U.S. Census Bureau data, Alabama’s property‑tax structure imposes a lower financial burden on property owners relative to Massachusetts. This information is useful for homeowners, prospective buyers, retirees, and investors who weigh property‑tax costs as part of their decision‑making process.
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.