Alabama vs Wyoming
Property‑Tax Comparison: Alabama vs. Wyoming
Intro
Both Alabama and Wyoming 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 lower than Wyoming’s, resulting in smaller annual tax bills for comparable home values.
Side‑by‑Side Metrics
| Metric | Alabama | Wyoming |
|---|---|---|
| Effective property‑tax rate | 0.38 % | 0.58 % |
| Median home value | $195,100 | $285,100 |
| Median annual property tax | $738 | $1,659 |
| Property tax on a $250,000 home | $946 | $1,455 |
| Property tax on a $500,000 home | $1,892 | $2,909 |
| Median household income | $62,027 | $74,815 |
Sources: “According to 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: 0.20 % (approximately 35 % lower than Wyoming)
- Annual tax difference on a $250,000 home: $509 (Alabama $946 vs. Wyoming $1,455)
- Annual tax difference on a $500,000 home: $1,017 (Alabama $1,892 vs. Wyoming $2,909)
Why Alabama wins: The effective property‑tax rate of 0.38 % in Alabama is 0.20 % points lower than Wyoming’s 0.58 %. Because the rate applies directly to assessed property values, the lower rate yields consistently lower annual tax payments across the price points shown.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of Findings |
|---|---|
| Current homeowners | Lower ongoing property‑tax costs in Alabama can reduce annual housing expenses compared with Wyoming. |
| Prospective homebuyers | When budgeting for a purchase, the difference in effective rates translates into measurable savings on both median‑priced and higher‑priced homes. |
| Retirees | Fixed‑income retirees may find Alabama’s lower tax bill more compatible with limited cash flow, though other cost‑of‑living factors are not addressed here. |
| Real‑estate investors | Investment property owners can anticipate lower property‑tax outlays in Alabama, which may affect net‑operating income calculations. |
The comparison focuses solely on property‑tax rates and related payments; it does not assess other fiscal considerations such as income tax, sales tax, or state‑level program costs.
Further Reading
- Detailed information on Alabama’s property‑tax structure: Alabama property tax
- Detailed information on Wyoming’s property‑tax structure: Wyoming property tax
Based on the most recent ACS estimates, Alabama’s effective property‑tax rate is lower than Wyoming’s, resulting in smaller annual tax liabilities for comparable home values.
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.