Taxes in Alabama

Each state’s tax code is a multifaceted system with many moving parts, and Alabama is no exception. The first step towards understanding Alabama’s tax code is knowing the basics.

How does Alabama rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Alabama’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore! 

 

Top Individual Income Tax Rate

5%

See Full Study

State and Local Individual Income Tax Collections per Capita

$709

Click for a comparative tax map!

State and Local Tax Burden

8.70%

Click for a comparative tax map!
See Full Study

Tax Freedom Day

April 9

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

6.5%

See Full Study

State Business Tax Climate Index Ranking

35

See Full Study

State Sales Tax Rate

4.00%

Click for a comparative tax map!
See Full Study

Average Local Sales Tax Rate

5.10%

See Full Study

Combined State and Average Local Sales Tax Rate

9.10%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$938

State Gasoline Tax Rate (cents per gallon)

20.91¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$0.675

Click for a comparative tax map!

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

.40%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$540

Related Articles

Protecting Interstate Taxpayers from Discriminatory State Taxation: CSX Transportation v. Alabama Department of Revenue

May 31, 2017

Lunch Links: U.S. Treasury vs. European Tax Probe; Alabama, South Carolina Study Tax Changes; Pennsylvania Vape Tax A Job-Killer

August 29, 2016

Lunch Links: Republican Plan Upcoming for Sales Tax on Internet Buys; Walmart Avoids Excessive Tax Proposed by Puerto Rico; Explaining Why States Should Index Tax Brackets for Inflation

August 25, 2016

Lunch Links: Pairing Trump Tax Breaks Together Ill-advised; Carbon Tax an Issue in Vermont Governor’s Race; Soft Serve in Many Splendid Tax Forms

August 19, 2016

Lunch Links: Americans Not Falling for Sales Tax Holidays; Estate Tax Battle Heats Up; Alabama Discussing Gas Tax

August 18, 2016

Lunch Links: Massachusetts Marijuana Initiative Gets Clarification; Alabama Starts Tax Amnesty; Why Arizona Sales Tax is High

July 8, 2016

Lunch Links: Congressman Beats State Tax Commission; Rhode Island Revelations; Paying Property Taxes with $1 Bills

June 16, 2016

Lunch Links: Maryland Property Tax Hike, No Maine Marijuana, Do Millionaires Move Because of Taxes?

May 27, 2016

Lunch Links: Who Pays California Taxes, Shutting Down the IRS, Australia Cuts Corporate Tax Rate

May 3, 2016

Alabama Lawmakers Still Haven’t Reached a Budget Agreement

June 12, 2015

Alabama Considers Several Tax Increase Plans

May 14, 2015

10 Remaining States Provide Tax Filing Guidance to Same-Sex Married Taxpayers

March 20, 2015

Alabama’s State and Local Tax Burden

October 23, 2012

Alabama Education Funding Diverted to Pay for Film Incentives

April 3, 2012

Alabama Aims to Shield Tax Incentives from Legal Challenges

February 29, 2012

Reflecting on the Tax Legacy of the Civil War, 150 Years Later

July 21, 2011

Highest Sales Tax in the United States

March 10, 2011

U.S. Supreme Court Sides with Tax Foundation Brief, Reaffirming that Tax Exemptions Can Be Discriminatory

February 22, 2011

Public Employee Retirees in Alabama Town Face Broke Pension Plan

December 23, 2010

Supreme Court Considers Whether Sales Tax Exemptions Can Be Discriminatory Taxes

September 13, 2010