Alaska vs New Jersey
Property Tax Comparison: Alaska vs. New Jersey
Brief overview
Both Alaska and New Jersey 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), Alaska’s effective property‑tax rate is substantially lower than New Jersey’s. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and discuss which types of residents may find the comparison most relevant.
Side‑by‑side metrics
| Metric (2023 ACS) | Alaska | New Jersey |
|---|---|---|
| Effective property‑tax rate | 1.14 % | 2.23 % |
| Median home value | $333,300 | $427,600 |
| Median annual property tax | $3,785 | $9,541 |
| Property tax on a $250,000 home | $2,839 | $5,578 |
| Property tax on a $500,000 home | $5,678 | $11,157 |
| Median household income | $89,336 | $101,050 |
| Reference | Alaska property tax | New Jersey 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 tax?
Alaska has the lower effective property‑tax rate (1.14 % vs. 2.23 %).
- Rate difference: 1.10 percentage points, which is a 49.11 % lower rate than New Jersey’s.
- Annual tax difference on a $250,000 home: $5,578 – $2,839 = $2,739.
- Annual tax difference on a $500,000 home: $11,157 – $5,678 = $5,479.
Because the tax burden is calculated as a percentage of assessed value, the lower rate in Alaska translates directly into lower dollar amounts for comparable property values.
Who might find this comparison most useful?
| Audience | Relevance of the comparison |
|---|---|
| Current homeowners | Understanding how their property‑tax bills compare to those in another state can inform decisions about relocating or refinancing. |
| Prospective homebuyers | Buyers weighing offers in different markets can use the tax rate and median tax amounts to estimate total housing costs. |
| Retirees | Since property taxes affect fixed‑income budgets, retirees may prefer states with lower rates, all else equal. |
| Real‑estate investors | Investors assessing cash‑flow projections need accurate tax cost data for each jurisdiction. |
| Policy analysts | The side‑by‑side data illustrate how state‑level tax policies differ, supporting comparative fiscal studies. |
The comparison is purely factual; it does not account for other cost‑of‑living factors (e.g., sales tax, income tax, climate, or public‑service quality) that may also influence a household’s overall expenses.
Summary
Based on the most recent ACS estimates, Alaska’s effective property‑tax rate of 1.14 % is markedly lower than New Jersey’s 2.23 %. For a median‑priced home, the annual property‑tax bill in Alaska ($3,785) is less than half of that in New Jersey ($9,541). Individuals and families for whom property‑tax costs are a primary consideration—such as homeowners, prospective buyers, and retirees—may view Alaska as the more tax‑advantageous option, while other financial and lifestyle factors should also be evaluated.
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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.