Alaska vs Iowa
Property Tax Comparison: Alaska vs. Iowa
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Alaska and Iowa differ substantially in several property‑tax‑related metrics. Both states have relatively low median home values compared with the national average, but the effective property‑tax rates and resulting annual tax obligations vary enough to influence decisions for prospective homeowners, retirees, and real‑estate investors.
Side‑by‑Side Metrics
| Metric | Alaska | Iowa |
|---|---|---|
| Effective property‑tax rate | 1.14 % | 1.43 % |
| Median home value | $333,300 | $195,900 |
| Median annual property tax | $3,785 | $2,795 |
| Tax on a $250,000 home | $2,839 | $3,567 |
| Tax on a $500,000 home | $5,678 | $7,134 |
| Median household income | $89,336 | $73,147 |
Sources: Alaska property tax and Iowa property tax; data drawn from the 2023 ACS 5‑year estimates.
Which State “Wins” on Property Tax?
Alaska has the lower effective property‑tax rate (1.14 % vs. 1.43 %).
- Rate difference: 0.29 % points, which represents a 20.40 % lower rate in Alaska.
- Annual tax difference on a $250 k home: $728 less in Alaska ($2,839 vs. $3,567).
- Annual tax difference on a $500 k home: $1,456 less in Alaska ($5,678 vs. $7,134).
Because the effective rate is the primary driver of yearly tax liability, Alaska “wins” the comparison when the goal is to minimize property‑tax costs.
Who May Benefit Most from This Comparison?
| Audience | Relevance of Findings |
|---|---|
| Current or prospective homeowners | Lower effective rates in Alaska mean a smaller proportion of home value is paid annually, which can reduce long‑term holding costs, especially for higher‑priced properties. |
| Retirees | Fixed‑income retirees may prioritize lower tax burdens. Alaska’s lower rate could help stretch retirement income, though overall cost of living and other taxes should also be considered. |
| Real‑estate investors | Investors evaluating cash‑flow projections will find Alaska’s lower tax rate advantageous, particularly for higher‑value assets where the absolute tax savings are larger. |
| First‑time buyers | Although Alaska’s median home value is higher, the lower tax rate partially offsets the higher purchase price compared with Iowa. Buyers should weigh total housing costs, not tax rate alone. |
These observations are purely based on property‑tax metrics; other fiscal factors (state income tax, sales tax, utility costs, and local service levels) are not addressed here.
Summary
Based on the most recent ACS estimates, Alaska’s effective property‑tax rate of 1.14 % is lower than Iowa’s 1.43 %, resulting in smaller annual tax bills for comparable home values. The difference translates to a 20 % lower tax rate and annual savings of $728–$1,456 on $250 k–$500 k homes. Stakeholders who prioritize minimizing property‑tax expenses—such as homeowners, retirees, and investors—may find Alaska more favorable on this specific dimension.
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.