Alaska vs Tennessee
Property‑Tax Comparison: Alaska vs. Tennessee
Quick view:
Both Alaska and Tennessee have relatively low property‑tax burdens compared with many other states, but Tennessee’s effective property‑tax rate is about half that of Alaska. The figures below are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Side‑by‑Side Metrics
| Metric (2023 ACS) | Alaska | Tennessee |
|---|---|---|
| Effective property‑tax rate | 1.14 % | 0.55 % |
| Median home value | $333,300 | $256,800 |
| Median annual property tax | $3,785 | $1,400 |
| Property tax on a $250,000 home | $2,839 | $1,363 |
| Property tax on a $500,000 home | $5,678 | $2,726 |
| Median household income | $89,336 | $67,097 |
Sources: According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Tax?
- Winner (lower tax rate): Tennessee
- Tax‑rate difference: 0.59 percentage points (Alaska’s 1.14 % vs. Tennessee’s 0.55 %), representing a 51.99 % lower effective rate in Tennessee.
- Annual tax difference for a $250 k home: $1,476 (Alaska $2,839 – Tennessee $1,363).
- Annual tax difference for a $500 k home: $2,952 (Alaska $5,678 – Tennessee $2,726).
Why Tennessee ranks lower: The effective property‑tax rate in Tennessee is roughly half that of Alaska, resulting in substantially lower annual tax bills for comparable home values. The lower median home price in Tennessee also contributes to a smaller absolute tax amount, but the primary driver of the difference is the rate itself.
For more detail on each state’s tax structure, see the dedicated pages: Alaska property tax and Tennessee property tax.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | Understanding the ongoing cost of owning a home in each state helps with budgeting and location decisions. |
| Retirees | Property‑tax burden directly affects fixed‑income budgets; a lower rate (as in Tennessee) can ease financial planning. |
| Real‑estate investors | Effective tax rates influence cash‑flow projections and return‑on‑investment calculations. |
| Policy analysts / researchers | The side‑by‑side ACS data provide a baseline for comparative fiscal studies. |
All groups can use the quantitative differences above to assess how property‑tax obligations might impact their personal or professional decisions.
Bottom Line
Based on the most recent ACS estimates, Tennessee’s effective property‑tax rate (0.55 %) is considerably lower than Alaska’s (1.14 %). This translates to roughly a 52 % reduction in the tax rate and annual savings of $1,476‑$2,952 for median‑priced homes at $250 k and $500 k, respectively. Homebuyers, retirees, and investors seeking lower property‑tax expenses may therefore find Tennessee more favorable from a tax‑burden perspective.
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.