Alabama vs North Dakota
Property‑Tax Comparison: Alabama vs. North Dakota
Introduction
Both Alabama and North Dakota 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 bills. The data below provides a side‑by‑side view of the key metrics that affect homeowners and other property owners.
Side‑by‑side Metrics
| Metric | Alabama | North Dakota |
|---|---|---|
| Effective property tax rate | 0.38 % | 0.99 % |
| Median home value | $195,100 | $241,100 |
| Median annual property tax | $738 | $2,392 |
| Property tax on a $250,000 home | $946 | $2,480 |
| Property tax on a $500,000 home | $1,892 | $4,961 |
| Median household income | $62,027 | $75,949 |
All figures are from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Who Wins on Property Tax Burden?
- Winner (lower tax rate): Alabama
- Rate difference: 0.61 percentage points, which represents a 61.87 % lower effective rate than North Dakota’s 0.99 %.
- Annual tax difference on a $250k home: $2,480 – $946 = $1,534.
- Annual tax difference on a $500k home: $4,961 – $1,892 = $3,069.
The lower effective rate in Alabama translates into consistently smaller annual tax bills across comparable home price points. The calculation is a direct application of the effective tax rate to the home value (e.g., 0.38 % × $250,000 = $946).
Audience for This Comparison
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners | Understanding how a change of residence could affect yearly tax costs. |
| Prospective homebuyers | Evaluating the long‑term affordability of a property in each state. |
| Retirees | Assessing tax burden relative to fixed incomes; lower taxes may be advantageous. |
| Real‑estate investors | Comparing cash‑flow implications of property‑tax expenses. |
| Policy analysts | Using the data as a benchmark for state‑level tax policy discussions. |
The information is most useful for individuals or entities that own or plan to own residential real estate and need to compare the ongoing tax obligations tied to property ownership in Alabama and North Dakota.
Further Reading
- Detailed breakdown of Alabama’s property‑tax structure: Alabama property tax
- Detailed breakdown of North Dakota’s property‑tax structure: North Dakota property tax
Based on the most recent ACS estimates, the figures above reflect statewide medians and rates; actual tax bills can vary by county, city, and specific property assessments.
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.