Alabama vs Missouri
Property‑Tax Comparison: Alabama vs. Missouri
Brief overview
Both Alabama and Missouri have property‑tax systems that are based on the assessed value of real‑estate and are collected by local governments. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property‑tax rate is substantially lower than Missouri’s, which results in lower annual tax bills for comparable home values.
Side‑by‑side key metrics
| Metric | Alabama | Missouri |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.88 % |
| Median home value (2026) | $195,100 | $215,600 |
| Median annual property tax | $738 | $1,887 |
| Property tax on a $250,000 home | $946 | $2,188 |
| Property tax on a $500,000 home | $1,892 | $4,376 |
| Median household income (2026) | $62,027 | $68,920 |
| Internal link – Alabama | Alabama property tax | |
| Internal link – Missouri | Missouri property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 ACS 5‑year estimates.
Which state “wins” on property tax?
Alabama has the lower effective property‑tax rate (0.38 % vs. 0.88 %).
- Rate difference: 0.50 percentage points, which is a 56.78 % lower rate than Missouri’s.
- Annual tax difference on a $250,000 home: $2,188 – $946 = $1,242.
- Annual tax difference on a $500,000 home: $4,376 – $1,892 = $2,484.
Because the tax rate is the primary determinant of the amount owed, Alabama is the lower‑tax jurisdiction for property owners.
Who benefits most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current or prospective homeowners | The lower rate in Alabama means a smaller portion of a home’s assessed value is paid each year, reducing overall housing‑cost burden. |
| Retirees on fixed incomes | Lower property taxes can help stretch retirement income, especially when combined with Alabama’s median household income that is closer to the state’s cost of living. |
| Real‑estate investors | The tax differential directly affects cash‑flow calculations; properties in Alabama generate higher net operating income after taxes, assuming comparable rents and expenses. |
| Relocating families | Property‑tax savings in Alabama may offset other cost differences (e.g., median home price) when budgeting for a move. |
| Policy analysts | The data illustrate how state‑level tax structures influence local revenue generation and homeowner expenses. |
The comparison is most useful for individuals and entities that consider property‑tax expense a significant factor in housing decisions.
Summary
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is markedly lower than Missouri’s 0.88 %. This translates into substantially lower annual taxes for typical home values ($250 k and $500 k) and a lower median tax bill overall. Stakeholders such as homebuyers, retirees, and investors who prioritize lower recurring tax costs are likely to find Alabama’s property‑tax environment more favorable, while Missouri’s higher rates may be offset by other state‑specific factors not covered in this tax‑only analysis.
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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.