Alabama vs New Hampshire
Property Tax Comparison: Alabama vs. New Hampshire
Brief overview
Both Alabama and New Hampshire 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 markedly lower than New Hampshire’s, while the median home values and household incomes differ substantially. The table below presents the key metrics side by side.
Side‑by‑side metrics
| Metric | Alabama | New Hampshire |
|---|---|---|
| Effective property tax rate | 0.38 % | 1.77 % |
| Median home value | $195,100 | $367,200 |
| Median annual property tax | $738 | $6,505 |
| Property tax on a $250k home | $946 | $4,429 |
| Property tax on a $500k home | $1,892 | $8,858 |
| Median household income | $62,027 | $95,628 |
| Relevant internal links | Alabama property tax | New Hampshire property tax |
Who “wins” on property taxes?
- Winner (lower tax rate): Alabama
- Tax‑rate difference: 1.39 percentage points, which represents a 78.65 % lower effective rate than New Hampshire.
- Annual tax difference on a $250,000 home: $3,483 (Alabama $946 vs. New Hampshire $4,429).
- Annual tax difference on a $500,000 home: $6,966 (Alabama $1,892 vs. New Hampshire $8,858).
The lower effective rate in Alabama translates into consistently smaller tax bills across the range of home values examined. Based on the most recent ACS estimates, Alabama’s property‑tax burden is less than one‑quarter of New Hampshire’s.
Who might find this comparison most useful?
| Audience | Relevance of the comparison |
|---|---|
| Current or prospective homeowners | Understanding the ongoing cost of owning a home in each state helps in budgeting for property‑tax expenses. |
| Retirees | Many retirees consider total cost of living, including property taxes, when selecting a retirement location. Lower taxes in Alabama may be financially advantageous. |
| Real‑estate investors | Investors assessing cash‑flow projections can use the tax‑rate differential to estimate operating expenses for rental properties. |
| Relocating employees | Workers whose compensation packages include housing allowances can compare the net cost of homeownership across states. |
All figures are drawn from U.S. Census Bureau data (2023 American Community Survey, 5‑year estimates). The analysis reflects only the property‑tax component; other fiscal factors (state income tax, sales tax, or local levies) are not covered here.
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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.