Alabama vs Puerto Rico
Property‑Tax Comparison: Alabama vs. Puerto Rico
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), the effective property‑tax rates and related metrics for Alabama and Puerto Rico differ in several key respects. Both jurisdictions levy property taxes based on assessed home values, but the rates, median home values, and household incomes vary enough to influence the overall tax burden for homeowners.
Side‑by‑side metrics
| Metric | Alabama | Puerto Rico |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.50 % |
| Median home value | $195,100 | $124,600 |
| Median annual property tax | $738 | $627 |
| Property tax on a $250,000 home | $946 | $1,258 |
| Property tax on a $500,000 home | $1,892 | $2,516 |
| Median household income | $62,027 | $25,096 |
| Internal link – Alabama | Alabama property tax | |
| Internal link – Puerto Rico | Puerto Rico property tax |
Which jurisdiction has the lower tax burden?
- Winner (lower effective rate): Alabama
- Rate difference: 0.12 percentage points, which is a 24.82 % lower rate than Puerto Rico’s 0.50 % rate.
- Annual tax difference on a $250,000 home: $312 (Alabama $946 vs. Puerto Rico $1,258).
- Annual tax difference on a $500,000 home: $624 (Alabama $1,892 vs. Puerto Rico $2,516).
The lower effective property‑tax rate in Alabama translates directly into smaller annual tax bills for comparable home values, even though Alabama’s median home price is higher than Puerto Rico’s.
Who is likely to benefit from this comparison?
| Audience | Relevance of the data |
|---|---|
| Current homeowners | The table shows the annual tax payable for typical home values; owners of $250k–$500k homes will pay less in Alabama. |
| Prospective homebuyers | Buyers can estimate tax costs using the effective rates; lower rates in Alabama may reduce overall housing expenses. |
| Retirees | Retirees often consider tax burden alongside income; Alabama’s lower property‑tax rate combined with a higher median household income suggests a comparatively lighter tax load. |
| Investors | Investors assessing cash‑flow need to factor property‑tax expense; Alabama’s lower rate improves net operating income for similar‑priced properties. |
| Policy analysts | The side‑by‑side figures provide a concise reference for evaluating state‑level tax policy impacts on residents. |
Summary
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is lower than Puerto Rico’s 0.50 %, resulting in modest but consistent annual savings for homeowners across comparable property values. The difference is most pronounced for higher‑valued homes, where the tax gap widens to $624 per year on a $500,000 property. Stakeholders—such as existing owners, prospective buyers, retirees, and real‑estate investors—can use these figures to gauge the relative tax burden in each jurisdiction.
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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.