Alabama vs Ohio
Property‑Tax Comparison: Alabama vs. Ohio
Intro
Both Alabama and Ohio levy property taxes on real‑estate owners, but the effective tax rates and resulting annual payments differ substantially. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property‑tax rate is 0.38 percent, while Ohio’s is 1.36 percent. This article presents the key metrics side by side, identifies which state has the lower rate, and notes the homeowner groups for whom the comparison is most relevant.
Side‑by‑Side Comparison
| Metric | Alabama | Ohio |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 1.36 % |
| Median home value | $195,100 | $199,200 |
| Median annual property tax | $738 | $2,712 |
| Property tax on a $250,000 home | $946 | $3,404 |
| Property tax on a $500,000 home | $1,892 | $6,807 |
| Median household income | $62,027 | $69,680 |
| Internal link | Alabama property tax | Ohio property tax |
All figures are from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Who Wins on Property Tax?
Alabama wins the comparison because it has the lower effective property‑tax rate (0.38 % vs. 1.36 %).
- Rate difference: 0.98 percentage points, which is a 72.21 % lower rate than Ohio’s.
- Annual tax difference on a $250,000 home: $2,458 less in Alabama.
- Annual tax difference on a $500,000 home: $4,915 less in Alabama.
The lower rate translates directly into lower annual tax bills for comparable‑value homes, as shown in the table above.
Which Homeowners Benefit Most?
| Audience | Relevance of the Comparison |
|---|---|
| Current homeowners | Understanding how a change of residence would affect yearly property‑tax expenses. |
| Prospective homebuyers | Assessing total cost of ownership when comparing homes of similar value in the two states. |
| Retirees on fixed incomes | Lower property taxes can reduce overall housing costs, making Alabama’s rates particularly advantageous. |
| Real‑estate investors | Tax burden influences net return on rental properties; Alabama’s lower rates may improve cash flow. |
The data are purely fiscal; other factors such as state income taxes, cost of living, and local services are outside the scope of this comparison.
Summary
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is substantially lower than Ohio’s 1.36 %. Consequently, Alabama homeowners pay considerably less in annual property taxes across a range of home values. The comparison is most useful for individuals evaluating housing costs, especially homeowners, prospective buyers, retirees, and investors who prioritize property‑tax expense in their decision‑making.
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.