Alabama vs New Jersey
Property‑Tax Comparison: Alabama vs. New Jersey
Both Alabama and New Jersey levy property taxes that fund local services such as schools, police, and road maintenance. The two states differ substantially in tax rates, home values, and the resulting annual tax bills. The data below are taken from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Side‑by‑side metrics
| Metric | Alabama | New Jersey |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 2.23 % |
| Median home value | $195,100 | $427,600 |
| Median annual property tax | $738 | $9,541 |
| Property tax on a $250,000 home | $946 | $5,578 |
| Property tax on a $500,000 home | $1,892 | $11,157 |
| Median household income | $62,027 | $101,050 |
Sources: Alabama property tax, New Jersey property tax.
Which state “wins” on property tax?
Alabama has the lower effective property‑tax rate (0.38 % vs. 2.23 %).
- Rate difference: 1.85 percentage points, which is an 83.05 % lower rate compared with New Jersey.
- Annual tax on a $250 k home: $946 in Alabama versus $5,578 in New Jersey – a difference of $4,632.
- Annual tax on a $500 k home: $1,892 in Alabama versus $11,157 in New Jersey – a difference of $9,265.
Based on the lower rate and the resulting smaller tax bills, Alabama “wins” the comparison for property‑tax burden.
Who might benefit most from this comparison?
| Audience | Relevance of the data |
|---|---|
| Current or prospective homeowners | Knowing the effective tax rate and typical annual tax amounts helps estimate the total cost of homeownership in each state. |
| Retirees | Property taxes can be a significant part of fixed‑income budgets; the lower Alabama rates may reduce overall living expenses. |
| Real‑estate investors | The tax differential influences cash‑flow projections, especially when comparing similar‑priced properties across states. |
| Policy analysts | The contrast highlights how state‑level tax policy can affect household financial burden relative to median incomes. |
All figures are presented without interpretation beyond the factual differences in tax rates and amounts. The comparison is intended to provide a clear, data‑driven snapshot for anyone evaluating property‑tax implications in Alabama versus New Jersey.
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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.