Alabama vs Mississippi
Property‑Tax Comparison: Alabama vs. Mississippi
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama and Mississippi differ noticeably in how much homeowners pay in property taxes. Both states have median home values below the national median, but the effective property‑tax rates and resulting annual tax bills vary enough to affect budgeting decisions for current and prospective residents.
Side‑by‑side metrics
| Metric | Alabama | Mississippi |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.74 % |
| Median home value | $195,100 | $161,400 |
| Median annual property tax | $738 | $1,189 |
| Property tax on a $250,000 home | $946 | $1,842 |
| Property tax on a $500,000 home | $1,892 | $3,684 |
| Median household income | $62,027 | $54,915 |
| Internal link | Alabama property tax | Mississippi property tax |
All figures are from the 2023 ACS 5‑year estimates.
Which state “wins” on property taxes?
- Winner (lower tax burden): Alabama – its effective property‑tax rate of 0.38 % is 0.36 percentage points lower than Mississippi’s 0.74 %.
- Rate difference: 0.36 % translates to a 48.65 % lower rate in Alabama.
- Annual tax difference on a $250k home: $1,842 (MS) – $946 (AL) = $896.
- Annual tax difference on a $500k home: $3,684 (MS) – $1,892 (AL) = $1,792.
Based on the lower effective tax rate, Alabama imposes a smaller property‑tax liability for comparable home values.
Who is most affected by the difference?
| Audience | Relevance of the comparison |
|---|---|
| Current homeowners | Lower annual taxes in Alabama can reduce ongoing housing costs, especially for owners of higher‑valued properties. |
| Prospective homebuyers | The tax differential influences total cost of ownership; buyers comparing similar‑priced homes will face lower property‑tax bills in Alabama. |
| Retirees and fixed‑income households | With median household income higher in Alabama, the combined effect of a lower tax rate and higher income may ease affordability for retirees. |
| Real‑estate investors | Investment properties valued at $250k–$500k generate lower tax expenses in Alabama, potentially improving net returns. |
These observations are factual and derived directly from the ACS data; they do not constitute financial advice.
Summary
According to U.S. Census Bureau data, Alabama’s effective property‑tax rate of 0.38 % is substantially lower than Mississippi’s 0.74 %. This results in median annual property taxes that are $451 lower in Alabama and creates a tax gap of $896–$1,792 for homes priced at $250 k–$500 k. The lower tax burden may be especially relevant for homeowners, retirees, and investors seeking to minimize recurring housing expenses.
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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.