Alabama vs Montana
Property‑Tax Comparison: Alabama vs. Montana
Intro
Both Alabama and Montana levy property taxes to fund local services such as schools, roads, and public safety. 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 Montana’s, while median home values and household incomes differ between the two states. The following sections present the key metrics side by side, identify which state has the lower tax burden, and discuss the types of homeowners for whom the comparison is most relevant.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Alabama | Montana |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.75 % |
| Median home value | $195,100 | $338,100 |
| Median annual property tax | $738 | $2,535 |
| Property tax on a $250,000 home | $946 | $1,875 |
| Property tax on a $500,000 home | $1,892 | $3,749 |
| Median household income | $62,027 | $69,922 |
| Internal link | Alabama property tax | Montana property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property‑Tax Burden?
- Winner (lower tax rate): Alabama
- Rate difference: 0.37 percentage points (Alabama’s 0.38 % vs. Montana’s 0.75 %). This represents a 49.55 % lower effective rate in Alabama.
- Annual tax difference on a $250,000 home: $929 (Alabama $946 vs. Montana $1,875).
- Annual tax difference on a $500,000 home: $1,857 (Alabama $1,892 vs. Montana $3,749).
Why Alabama scores lower: The effective property‑tax rate of 0.38 % is roughly half of Montana’s 0.75 %. Consequently, for identical home values, Alabama homeowners pay markedly less in annual property taxes.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | Understanding the tax burden relative to home price helps in budgeting and assessing total cost of ownership. |
| Retirees considering relocation | Property taxes directly affect fixed‑income budgets; states with lower rates may be financially advantageous. |
| Real‑estate investors | Tax differentials influence after‑tax return calculations, especially when comparing similar‑priced properties across states. |
| Policy analysts | The data illustrate how differing tax structures correlate with median home values and household incomes. |
The comparison is purely quantitative; it does not address other fiscal factors such as state income taxes, sales taxes, or service levels, which may also influence a homeowner’s overall tax burden.
Summary
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is lower than Montana’s 0.75 %, resulting in smaller annual tax payments for comparable home values. Homeowners, retirees, and investors who prioritize a lower property‑tax burden may find Alabama’s tax environment more favorable, while the higher median home values and household incomes in Montana suggest a different overall cost structure.
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.