Alabama vs Rhode Island
Property Tax Comparison: Alabama vs. Rhode Island
Alabama and Rhode Island differ markedly in the amount homeowners pay in property taxes. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property tax rate is less than one‑third of Rhode Island’s. The disparity is reflected in median home values, annual tax bills, and the taxes that would be assessed on homes priced at $250,000 and $500,000.
Side‑by‑Side Metrics
| Metric | Alabama | Rhode Island |
|---|---|---|
| Effective property tax rate | 0.38 % | 1.32 % |
| Median home value | $195,100 | $368,800 |
| Median annual property tax | $738 | $4,854 |
| Property tax on a $250k home | $946 | $3,291 |
| Property tax on a $500k home | $1,892 | $6,581 |
| Median household income | $62,027 | $86,372 |
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Taxes?
Alabama has the lower effective property tax rate.
- The absolute rate difference is 0.94 percentage points (1.32 % − 0.38 %).
- Relative to Rhode Island, the rate is 71.26 % lower (0.94 % ÷ 1.32 %).
Because the rate is lower, the resulting tax bills are also lower:
| Home value | Tax difference (Alabama vs. Rhode Island) |
|---|---|
| $250,000 | $2,345 less per year |
| $500,000 | $4,689 less per year |
Thus, based solely on property‑tax burden, Alabama “wins” the comparison.
Who Is This Comparison Most Relevant For?
| Audience | Why the comparison matters |
|---|---|
| Current homeowners | Understanding how much they would pay (or save) if they moved between the two states. |
| Prospective homebuyers | Evaluating the long‑term cost of ownership in addition to purchase price and income levels. |
| Retirees | Property taxes can affect fixed‑income budgeting; lower rates may make Alabama more attractive from a tax‑payment perspective. |
| Real‑estate investors | Tax rates influence net rental yields and total cost of ownership. |
| Policy analysts | Provides a data‑driven snapshot of how state‑level tax structures differ. |
The data are presented without opinion; they simply reflect the tax environment as reported by the Census Bureau.
Further Reading
- Detailed information on Alabama’s property‑tax system: Alabama property tax
- Detailed information on Rhode Island’s property‑tax system: Rhode Island property tax
Based on the most recent ACS estimates, the figures above represent the statewide averages and medians. Local variations (e.g., county or municipal rates) can cause actual tax bills to differ from these state‑level summaries.
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.