Alabama vs Michigan
Property‑Tax Comparison: Alabama vs. Michigan
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama and Michigan differ substantially in how much homeowners pay in property taxes. Alabama’s effective property‑tax rate is below 0.4 %, while Michigan’s rate exceeds 1 %. The following sections present the key figures side‑by‑side, identify which state has the lower rate, and note the groups for whom this information is most relevant.
Side‑by‑Side Metrics
| Metric | Alabama | Michigan |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 1.28 % |
| Median home value | $195,100 | $217,600 |
| Median annual property tax | $738 | $2,795 |
| Property tax on a $250,000 home | $946 | $3,211 |
| Property tax on a $500,000 home | $1,892 | $6,423 |
| Median household income | $62,027 | $71,149 |
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
- Tax‑rate difference: 0.91 percentage points (approximately a 70.55 % lower rate than Michigan).
- Annual tax difference on a $250k home: $2,265 less in Alabama.
- Annual tax difference on a $500k home: $4,531 less in Alabama.
Why Alabama wins: The effective property‑tax rate of 0.38 % in Alabama is more than three times lower than Michigan’s 1.28 %. Because the rate is applied to the assessed value of the property, the lower percentage translates directly into smaller annual tax bills across all home‑price tiers.
For readers who need detailed state‑specific information, see the internal pages on Alabama property tax and Michigan property tax.
Who Is This Comparison Most Useful For?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Determines the ongoing cost of owning a home in each state, which can affect budgeting and affordability calculations. |
| Retirees and fixed‑income households | Lower property‑tax obligations (as seen in Alabama) may be a critical factor when selecting a retirement location. |
| Real‑estate investors | Understanding tax differentials helps evaluate net‑return expectations for rental or resale properties. |
| Policy analysts & local officials | Provides a data‑driven snapshot of how state‑level tax structures compare, useful for benchmarking and policy review. |
All figures reflect the most recent ACS estimates; local exemptions, assessment practices, and supplemental levies can cause actual tax bills to vary within each state.
Summary – Based on the most recent ACS data, Alabama’s effective property‑tax rate of 0.38 % is markedly lower than Michigan’s 1.28 %. Homeowners, retirees, and investors looking for lower property‑tax obligations will generally find Alabama more favorable in this respect, while the higher median household income in Michigan may offset some tax burden for higher‑earning households.
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.