One point of contention in the North Carolina tax reform debate has been the fate of one particular tax expenditure—the uncapped sales tax refund for nonprofits. The refund applies to "sales of taxable tangible personal...
The Facts on Alabama's Tax Climate
5%individual income taxTop rate
6.5%corporate income taxFlat rate
$539property taxcollections per capita
Alabama's Individual Income Tax System
Alabama's personal income tax system consists of three brackets and a top rate of 5%. That rate ranks 20th lowest among states levying an individual income tax. Alabama's income tax collections per person were $565 in 2010 which ranked 14th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Alabama's Corporate Income Tax System
Alabama's corporate income tax system consists of a flat rate of 6.5%. That rate ranks 22nd lowest among states levying an corporate income tax. Alabama's corporate tax collections per person were $90 in 2010 which ranked 21st lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Alabama Sales and Excise Taxes
Alabama levies a 4% general sales or use tax on consumers, which is below the national median of 6%. The average local sales tax rate is an additional 4.45%. Alabama's state and local governments collect $814 per person in general sales taxes and $507 per person in excise taxes, for a combined figure of $1321, which ranks 25th highest nationally. Alabama's gasoline tax stands at 20.9¢ (14th lowest nationally), while its cigarette tax stands at $0.43 (5th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Alabama Property Tax Collections Lowest in Nation
Alabama's state and local governments collected approximately $539 per person in property taxes, which ranks lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 5th in Alabama
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Alabama taxpayers worked until April 5th (7th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Tennessee, April 2nd (ranked 3rd earliest nationally); Georgia, April 9th (ranked 18th earliest nationally); Florida, April 15th (ranked 19th latest nationally); and Mississippi, March 29th (ranked earliest nationally).
Alabama's State and Local Tax Burden Below National Average
Alabama's 2010 tax burden of 8.18% ranks 8th lowest out of 50 states, and is below the national average of 9.9%. Alabama's taxpayers pay $2740 per capita in state and local taxes.
Alabama's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Alabama's 2013 Business Tax Climate Index Ranks 21
Alabama ranks 21st in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Tennessee, 15th, Georgia, 34th, Florida, 5th, and Mississippi, 17th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)
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