Alabama vs New Mexico
Property Tax Comparison: Alabama vs. New Mexico
Introduction
Both Alabama and New Mexico 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), the two states differ markedly in effective tax rates, median home values, and the resulting annual tax amounts. The data below provide a side‑by‑side view of the key metrics that affect homeowners and other property owners.
Side‑by‑Side Comparison
| Metric | Alabama | New Mexico |
|---|---|---|
| Effective property tax rate | 0.38 % | 0.72 % |
| Median home value | $195,100 | $232,200 |
| Median annual property tax | $738 | $1,669 |
| Property tax on a $250,000 home | $946 | $1,797 |
| Property tax on a $500,000 home | $1,892 | $3,594 |
| Median household income | $62,027 | $62,125 |
| Internal link | Alabama property tax | New Mexico property tax |
All figures are derived from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Property Tax Burden?
Winner (lower tax rate): Alabama
- Effective tax‑rate difference: 0.34 % (Alabama’s rate is 47.37 % lower than New Mexico’s).
- Annual tax difference on a $250,000 home: $851 less in Alabama.
- Annual tax difference on a $500,000 home: $1,702 less in Alabama.
The lower effective rate in Alabama results in lower annual tax payments across comparable home values, even though Alabama’s median home price is slightly lower than New Mexico’s.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners | Understanding the ongoing tax liability for existing properties in each state. |
| Prospective homebuyers | Assessing the long‑term cost of ownership when evaluating locations. |
| Retirees | Evaluating overall affordability, since property taxes often represent a fixed expense in retirement budgeting. |
| Real‑estate investors | Comparing tax‑related cash‑flow implications for rental or investment properties. |
| Policy analysts | Examining how differing tax structures align with median income levels and housing markets. |
The data are purely descriptive; they do not account for other fiscal factors such as state income taxes, sales taxes, or local exemptions that could influence an individual’s total tax burden.
Summary
Based on the most recent ACS estimates, Alabama’s effective property tax rate of 0.38 % is substantially lower than New Mexico’s 0.72 %. Consequently, Alabama imposes lower annual taxes on median‑priced homes and on $250k‑ and $500k‑valued properties. Stakeholders such as homeowners, retirees, and investors can use this comparison to gauge the relative cost of property ownership in the two states.
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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.