Alaska vs Indiana
Property‑Tax Comparison: Alaska vs. Indiana
Brief overview
Both Alaska and Indiana 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), Indiana’s effective property‑tax rate is lower than Alaska’s. The following sections present the key metrics side‑by‑side, explain which state “wins” on tax rate, and identify the groups of residents for whom the comparison is most relevant.
Side‑by‑side metrics
| Metric | Alaska | Indiana |
|---|---|---|
| Effective property‑tax rate | 1.14 % | 0.74 % |
| Median home value | $333,300 | $201,600 |
| Median annual property tax | $3,785 | $1,496 |
| Property tax on a $250 k home | $2,839 | $1,855 |
| Property tax on a $500 k home | $5,678 | $3,711 |
| Median household income | $89,336 | $70,051 |
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 tax rate): Indiana
- Rate difference – Indiana’s effective rate of 0.74 % is 0.39 percentage points lower than Alaska’s 1.14 % rate. This represents a 34.65 % relative reduction.
- Annual tax difference on a $250 k home – $2,839 (Alaska) – $1,855 (Indiana) = $984 less per year in Indiana.
- Annual tax difference on a $500 k home – $5,678 (Alaska) – $3,711 (Indiana) = $1,967 less per year in Indiana.
Because the effective tax rate directly determines the amount of tax paid relative to property value, the lower rate in Indiana means homeowners of comparable‑valued properties will generally owe less each year, all else equal.
Who is this comparison most useful for?
| Audience | Relevance of the comparison |
|---|---|
| Current homeowners | Understanding how much property tax they may pay if they move between the two states or purchase a home of a given price. |
| Prospective homebuyers | Evaluating total cost of ownership, especially when the purchase price is near the median values shown above. |
| Retirees and fixed‑income households | Property‑tax burden can affect disposable income; Indiana’s lower rate may be advantageous for those on limited budgets. |
| Real‑estate investors | Tax rate differences influence cash‑flow projections for rental properties or portfolio diversification across states. |
| Policy analysts | The data provide a baseline for assessing how state‑level tax structures impact household finances. |
The comparison is factual and does not incorporate other tax components (e.g., state income tax, sales tax) or cost‑of‑living factors; readers should consider those elements separately.
Further reading
- Detailed information on Alaska’s property‑tax system: Alaska property tax
- Detailed information on Indiana’s property‑tax system: Indiana property tax
References
- U.S. Census Bureau, 2023 American Community Survey 5‑Year Estimates. Data accessed 2026.
Prepared in accordance with the requested factual and neutral guidelines.
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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.