Alabama vs North Carolina
Property‑Tax Comparison: Alabama vs. North Carolina
Intro
Both Alabama and North Carolina levy property taxes to fund local services such as schools, public safety, and infrastructure. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property‑tax rate is lower than North Carolina’s, resulting in smaller annual tax bills for comparable home values. The following sections present the key metrics side by side, identify the lower‑rate state, and outline which groups of residents may find the information most relevant.
Side‑by‑Side Metrics
| Metric | Alabama | North Carolina |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.70 % |
| Median home value | $195,100 | $259,400 |
| Median annual property tax | $738 | $1,815 |
| Property tax on a $250,000 home | $946 | $1,749 |
| Property tax on a $500,000 home | $1,892 | $3,499 |
| Median household income | $62,027 | $69,904 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax
- Winner (lower tax rate): Alabama
- Rate difference: 0.32 % points, which is a 45.93 % lower effective rate than North Carolina’s.
- Annual tax difference on a $250k home: $803 less in Alabama.
- Annual tax difference on a $500k home: $1,607 less in Alabama.
The lower effective tax rate in Alabama translates directly into smaller property‑tax bills for identical home values. For example, a homeowner with a $250,000 residence would pay $946 in Alabama versus $1,749 in North Carolina, a difference of $803 per year. The same pattern holds for higher‑value homes.
Who This Comparison Is Most Relevant For
| Audience | Why the data matters |
|---|---|
| Current or prospective homeowners | Determines the ongoing cost of owning a home in each state, influencing affordability calculations. |
| Retirees and fixed‑income households | Property‑tax burden can significantly affect disposable income; lower taxes in Alabama may be advantageous. |
| Real‑estate investors | Understanding tax differentials helps assess net return on investment for properties of various price points. |
| Relocators comparing cost of living | Property tax is a core component of overall cost of living; the table provides a clear, data‑driven comparison. |
Additional Resources
- Detailed state‑specific information: Alabama property tax
- Detailed state‑specific information: North Carolina property tax
Conclusion
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is substantially lower than North Carolina’s 0.70 %. This results in lower annual property‑tax payments for comparable home values, a factor that may be particularly important for homeowners, retirees, and others sensitive to recurring housing costs.
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.