Alaska vs Minnesota
Minnesota
Property Tax Comparison: Alaska vs. Minnesota
Short introduction
Both Alaska and Minnesota 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), Minnesota’s effective property‑tax rate is slightly lower than Alaska’s. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and outline the groups for whom this information is most relevant.
Side‑by‑side comparison of key property‑tax metrics
| Metric (2023 ACS 5‑year) | Alaska | Minnesota |
|---|---|---|
| Effective property‑tax rate | 1.14 % | 1.04 % |
| Median home value | $333,300 | $305,500 |
| Median annual property tax | $3,785 | $3,184 |
| Property tax on a $250,000 home | $2,839 | $2,606 |
| Property tax on a $500,000 home | $5,678 | $5,211 |
| Median household income | $89,336 | $87,556 |
| Relevant internal link | Alaska property tax | Minnesota 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?
Winner (lower effective tax rate): Minnesota
- Tax‑rate difference: 0.09 percentage points, which is an 8.22 % lower rate than Alaska’s 1.14 % rate.
- Annual tax difference on a $250,000 home: $233 less in Minnesota.
- Annual tax difference on a $500,000 home: $467 less in Minnesota.
Why Minnesota wins: The effective property‑tax rate of 1.04 % is modestly lower than Alaska’s 1.14 %. Because the rate is applied to the assessed value of a property, the lower rate translates directly into lower annual tax payments for comparable home values.
Who benefits most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current and prospective homeowners | Understanding the relative tax burden helps in budgeting for homeownership costs and in comparing affordability between the two states. |
| Retirees | Property taxes often affect fixed‑income households; a lower effective rate may make one state more attractive for retirement planning. |
| Real‑estate investors | Tax rates influence net return on investment properties; the data provide a baseline for cash‑flow analysis. |
| Policy analysts and local officials | The side‑by‑side metrics illustrate how tax structures differ across states, supporting comparative policy studies. |
| Potential migrants | Individuals weighing relocation decisions can use the tax information alongside income and home‑value data to assess overall cost of living. |
All groups can rely on the presented figures as factual, government‑sourced data without any interpretive bias.
Summary
Based on the most recent ACS estimates, Minnesota’s effective property‑tax rate of 1.04 % is lower than Alaska’s 1.14 %, making Minnesota the lower‑tax option for property owners in the two states. The difference translates into modest annual savings—$233 on a $250,000 home and $467 on a $500,000 home. This information is especially useful for homeowners, retirees, investors, and anyone evaluating the overall cost of owning real estate in Alaska versus Minnesota.
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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.