Alabama vs Washington
Property‑Tax Comparison: Alabama vs. Washington
Overview
Both Alabama and Washington collect property taxes to fund local services such as schools, public safety, and infrastructure. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alabama’s effective property‑tax rate is less than half that of Washington. The difference in rates translates into substantially lower annual property‑tax bills for comparable home values in Alabama.
Side‑by‑Side Metrics
| Metric | Alabama | Washington |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.84 % |
| Median home value | $195,100 | $519,800 |
| Median annual property tax | $738 | $4,361 |
| Property tax on a $250,000 home | $946 | $2,098 |
| Property tax on a $500,000 home | $1,892 | $4,195 |
| Median household income | $62,027 | $94,952 |
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Tax Burden?
- Winner (lower effective rate): Alabama
- Rate difference: 0.46 percentage points (approximately 54.9 % lower than Washington)
- Annual tax difference for a $250k home: $1,152 lower in Alabama
- Annual tax difference for a $500k home: $2,303 lower in Alabama
The lower effective property‑tax rate in Alabama results directly from the state’s tax structure and assessment practices, which keep the average tax bill well below that of Washington for identical property values.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of Alabama’s Lower Tax Rate | Relevance of Washington’s Higher Tax Rate |
|---|---|---|
| Current homeowners | Lower annual property‑tax payments can reduce ongoing housing costs. | Higher taxes may be offset by higher median home values and incomes. |
| Prospective homebuyers | More affordable property‑tax bills can increase purchasing power, especially for mid‑range homes. | Buyers may need to factor higher tax costs into budgeting, particularly in higher‑priced markets. |
| Retirees | Reduced tax liability can help stretch fixed incomes. | Higher tax costs may be mitigated by Washington’s lack of a state income tax, but property taxes remain a significant expense. |
| Investors | Lower tax expenses can improve cash‑flow projections for rental properties. | Higher taxes may be absorbed by higher rental rates in more expensive markets. |
The comparison is most useful for individuals evaluating the total cost of homeownership, including recurring tax obligations, rather than for those focused solely on income‑tax considerations.
Sources
- According to U.S. Census Bureau data, the effective property‑tax rates and related metrics are derived from the 2023 American Community Survey (5‑year estimates).
- For more detailed state‑specific information, see the internal pages: Alabama property tax and Washington property tax.
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.