Two buyers, same $250,000 house. One version of it sits in Columbus, the other across the bridge in Phenix City. Same price, same loan, same rate.
The payments come back almost $200 a month apart.
It isn't the interest rate. It's property taxes, and the reason has very little to do with which state is "cheaper." It's the way each state does the math.
Georgia taxes 40% of your home's value. Alabama taxes 10%.
Everything else follows from this one line.
Georgia assesses residential property at 40% of fair market value, according to the Georgia Department of Revenue. A $250,000 house in Columbus carries an assessed value of $100,000.
Alabama assesses owner-occupied single-family homes as Class III property at 10% of fair market value, per the Alabama Department of Revenue. That same $250,000 house in Phenix City carries an assessed value of $25,000.
Four times the taxable base on the Georgia side, before anyone has quoted you a rate.
The property tax rate is higher in Phenix City
Here's what surprises people. Phenix City's millage rate is higher than Columbus's. Considerably higher.
A Columbus home in Urban Services District 1 pays 15.15 mills to the Consolidated Government for 2026, plus 23.075 mills to the Muscogee County Board of Education. That's 38.225 mills.
Phenix City comes to 59 mills, per the Russell County Revenue Commissioner: 6.5 state, 12 county, 28.5 school, and 12 municipal.
Fifty-nine is a bigger number than 38.225. It still loses badly, because it's applied to a quarter of the base.
The math on a $250,000 house
Columbus: $100,000 assessed, times 38.225 mills, is about $3,823 a year. Call it $319 a month in your escrow.
Phenix City: $25,000 assessed, times 59 mills, is $1,475 a year. About $123 a month.
Difference: roughly $2,350 a year. Just under $200 a month, on the same house at the same price. Both figures are before homestead exemptions, which lower each side.
Homestead exemptions, and the deadline people miss
Georgia's standard homestead exemption removes $2,000 from your assessed value, and the filing deadline is April 1. Muscogee County may offer additional local exemptions on top of that, which is worth a call to the Board of Tax Assessors.
Alabama's H-1 exemption is available to any owner-occupant with no age or income test: $4,000 of assessed value off the state portion and $2,000 off the county portion. More exemptions open up at 65.
Neither one is automatic when you buy. Nobody files it for you, and missing the window costs you a full year.
This changes what you qualify for, not just what you pay
Here is the part buyers miss, and it matters more than the monthly number.
Your escrow payment is part of your housing payment. Your housing payment drives your debt-to-income ratio. Your debt-to-income ratio decides your loan amount.
At 6.65% — Freddie Mac's 30-year average as of August 20, 2026 — about $196 a month of freed-up payment supports roughly $30,000 more in loan amount over 30 years.
So the state line isn't a $200 question. For a buyer sitting at the edge of qualifying, it can be the difference between getting the house and not.
Before you decide Alabama wins
Three things worth knowing.
That 59 mills is Phenix City specifically. Unincorporated Russell County runs 36 mills. Buy outside the city limits and the number moves again.
Homeowners insurance is priced by the address, not the state, and it can eat into the gap. Get a real quote on the actual house before you count the savings.
And the 10% rate is Class III, for owner-occupied property. Buy the same house as a rental and the classification changes.
What to ask before you write an offer
Ask your lender for two payment estimates at the same purchase price, one for each side of the river, built on each county's actual millage instead of a generic placeholder. A pre-approval running on an estimated tax figure isn't worth much in a market where that estimate can be off by $200 a month.
If you want the side-by-side run for a specific price point, reach out. It takes about ten minutes, and it's a lot cheaper to know now than after you're under contract.
Tucker Watson is a mortgage loan officer with CrossCountry Mortgage serving Columbus, Georgia, Phenix City, Alabama, and the surrounding communities. NMLS #2762636.
This article is general information about the mortgage process and is not tax advice, lending advice, a loan commitment, or an offer to extend credit. Millage rates and exemptions change; confirm current figures with the Muscogee County Board of Tax Assessors or the Russell County Revenue Commissioner for your specific property.