Alabama vs Vermont
Property‑Tax Comparison: Alabama vs. Vermont
Brief overview
Both Alabama and Vermont 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), Alabama’s effective property‑tax rate is substantially lower than Vermont’s. The difference in rates translates into markedly lower annual taxes for comparable home values, even though Vermont’s median home price and median household income are higher.
Side‑by‑side metrics
| Metric | Alabama | Vermont |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 1.71 % |
| Median home value | $195,100 | $290,500 |
| Median annual property tax | $738 | $4,956 |
| Annual tax on a $250,000 home | $946 | $4,265 |
| Annual tax on a $500,000 home | $1,892 | $8,530 |
| Median household income | $62,027 | $78,024 |
| Internal link | Alabama property tax | Vermont property tax |
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 records the lower effective property‑tax rate. The rate difference is 1.33 percentage points, representing a 77.8 % lower rate compared with Vermont.
- For a $250,000 home, the annual tax in Alabama ($946) is $3,319 less than in Vermont ($4,265).
- For a $500,000 home, the annual tax in Alabama ($1,892) is $6,638 less than in Vermont ($8,530).
Because the tax burden is calculated as a percentage of assessed value, the lower rate in Alabama produces lower taxes across the price spectrum, regardless of the higher median home value in Vermont.
Who benefits most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current homeowners | Those who own property in either state can see how the tax rate directly affects annual out‑of‑pocket costs. |
| Prospective homebuyers | Buyers evaluating affordability will find the lower Alabama rate advantageous, especially for higher‑priced homes. |
| Retirees and fixed‑income households | Lower property taxes reduce fixed expenses, making Alabama’s tax environment more favorable for retirees on limited incomes. |
| Policy analysts / researchers | The stark contrast in rates offers a clear data point for studies on fiscal policy and its impact on household budgets. |
The comparison is primarily useful for individuals and families for whom property‑tax expense is a material component of total housing costs. It is less relevant for those whose primary concern is other tax categories (e.g., income or sales tax) or for investors focused solely on rental yield.
Summary
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate of 0.38 % is substantially lower than Vermont’s 1.71 %. This results in annual property‑tax savings of $3,319 on a $250 k home and $6,638 on a $500 k home. The data suggest that, from a property‑tax standpoint, Alabama offers a lower fiscal burden for homeowners, retirees, and other residents who prioritize lower recurring housing costs.
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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.