Alabama vs Nebraska
Property‑Tax Comparison: Alabama vs. Nebraska
Brief overview
Both Alabama and Nebraska levy property taxes that 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 0.38 percent, while Nebraska’s rate is 1.50 percent. The difference in rates translates into substantially different annual tax bills for comparable home values.
Side‑by‑side metrics
| Metric | Alabama | Nebraska |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 1.50 % |
| Median home value | $195,100 | $223,800 |
| Median annual property tax | $738 | $3,350 |
| Tax on a $250,000 home | $946 | $3,742 |
| Tax on a $500,000 home | $1,892 | $7,485 |
| Median household income | $62,027 | $74,985 |
Sources: “According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).”
Which state has the lower tax burden?
- Winner (lower effective rate): Alabama
- Rate difference: 1.12 percentage points (≈ 74.7 % lower than Nebraska’s rate)
- Annual tax difference on a $250k home: $2,796 (Nebraska $3,742 – Alabama $946)
- Annual tax difference on a $500k home: $5,593 (Nebraska $7,485 – Alabama $1,892)
Why Alabama wins – The lower effective property‑tax rate (0.38 % vs. 1.50 %) means that, for any given home value, the assessed tax liability in Alabama is roughly one‑quarter of the liability in Nebraska. The calculation is based on the rate applied to the median home values and the specific examples for $250k and $500k properties.
Who might find this comparison most useful?
| Audience | Relevance of the comparison |
|---|---|
| Current homeowners | Understanding how a change of residence could affect annual tax expenses. |
| Prospective homebuyers | Estimating long‑term housing costs when evaluating properties in the two states. |
| Retirees | Assessing the impact of property taxes on fixed‑income budgets, especially where other taxes (e.g., income tax) also vary. |
| Financial planners / advisors | Incorporating state‑level property‑tax differences into broader retirement or relocation planning. |
| Policy analysts | Comparing fiscal structures across states for research on local government financing. |
The data are purely descriptive; they do not account for other tax categories (e.g., income or sales tax), cost‑of‑living differences, or variations in local assessment practices within each state.
Further reading
- Detailed information on Alabama’s property‑tax system: Alabama property tax
- Detailed information on Nebraska’s property‑tax system: Nebraska property tax
All figures reflect the most recent ACS estimates available as of 2023.
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.