Alabama vs New York
Property‑Tax Comparison: Alabama vs. New York
Overview
Both Alabama and New York levy taxes on real‑estate owners, but the effective rates and resulting dollar amounts differ markedly. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property‑tax rate is 0.38 %, while New York’s is 1.60 %. The disparity translates into substantially lower annual payments for comparable homes in Alabama.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Alabama | New York |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 1.60 % |
| Median home value | $195,100 | $403,000 |
| Median annual property tax | $738 | $6,450 |
| Property tax on a $250,000 home | $946 | $4,001 |
| Property tax on a $500,000 home | $1,892 | $8,003 |
| Median household income | $62,027 | $84,578 |
Sources: “According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).”
Which State “Wins” on Property Tax?
Alabama has the lower effective property‑tax rate (0.38 % vs. 1.60 %).
- The rate difference is 1.22 percentage points, representing a 76.36 % lower rate in Alabama.
- For a $250,000 home, the annual tax is $3,055 less in Alabama ($946 vs. $4,001).
- For a $500,000 home, the annual tax is $6,111 less in Alabama ($1,892 vs. $8,003).
Because the comparison is based on the effective tax rate, Alabama is the clear “winner” for taxpayers seeking the lowest property‑tax burden.
Who Is This Comparison Most Relevant For?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding the recurring cost of ownership helps in budgeting and in evaluating total housing affordability. |
| Retirees | Fixed‑income retirees often prioritize lower ongoing expenses; the lower property tax in Alabama may be advantageous. |
| Real‑estate investors | Property‑tax rates affect cash‑flow projections; the lower Alabama rate can improve net operating income for rental properties. |
| Relocating individuals/families | The data provide a baseline for comparing overall cost of living, especially when combined with median household‑income figures. |
The analysis does not address other tax categories (e.g., income or sales taxes) or non‑tax factors such as climate, employment opportunities, or public services. Users should consider the full fiscal environment of each state when making relocation or investment decisions.
Further Reading
Based on the most recent ACS estimates, the figures above reflect statewide medians and average rates. Local jurisdictions within each state may impose additional assessments that can alter an individual property’s tax bill.
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.