Alabama has second lowest property taxes and seventh lowest home values

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State's vehicle property taxes are also low according to new study

Alabama is 2020’s state with the second lowest real estate property taxes, according to a new study released Tuesday by the personal finance website WalletHub.

Alabama’s effective real estate tax rate is .42-percent. Only Hawaii’s is lower. Annual real estate taxes on a $205,000 home – the national average – are $854 in Alabama. Mississippi’s taxes are $1,624 (18th lowest) on that same home. Florida’s are $1,902 (26th lowest).

The avarege home value in Alabama is seventh lowest in the nation at $137,200. The annual property tax bill for that “average” house is $572.

By comparison, in New Jersey the average house is worth $327,900. A Taxpayer there would have a property tax bill of $8,104 based on the state 2.47-percent rate.

Alabama is one of 27 states to have a vehicle property tax, but it has the fourth lowest rate – .68-percent. An Alabamian pays $170 on a $25,000 car.

Taxpayers in Mississippi, where the tax rate is 3.50%, pay $875 for that same car. Only Virginia has a higher vehicle property tax.

See the full report here

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