The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2019

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.

Alabama

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The Bottom Line
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Alabama is a state of contrasts: Property taxes are the second-lowest in the country, but sales taxes are near the top (third place) — and the full rate is levied on food.

As for income taxes, more contrasts: It doesn’t take much income to find yourself in Alabama’s highest tax bracket, but the Yellowhammer State does allow you to deduct your federal income taxes from your state income. It’s one of just of a handful of states with this break.

Sales Tax

4% state levy. Localities can add as much as 7% to that, and the average combined rate is 9.17%, according to the Tax Foundation. Alabama is one of the few states that does not exempt groceries from sales taxes.

Income Tax Range

Low: 2% (on up to $1,000 of taxable income for married joint filers and up to $500 for all others)

High: 5% (on more than $6,000 of taxable income for married joint filers and more than $3,000 for all others)

Effective tax rate: 4.84% for single filers, 4.93% for joint filers.

Alabama also allows residents to deduct all of their federal income tax from state taxable income. Some counties and cities charge an “municipal occupational tax” of 0.5%-2% on earned income; the average levy is 0.5%, according to the Tax Foundation.

Motor Fuel Taxes

Gasoline: $0.2721 per gallon.
Diesel: $0.2815 per gallon.

Property Taxes

In Alabama, residents pay an average of $432 in taxes per $100,000 of assessed home value.

Vehicle Taxes

Car sales are taxed at 2% by the state (half of the general tax), and municipalities can add to that, with the maximum local levy at 5.25%. Most vehicles are subject to an annual property tax, with rates set by municipality. The levy applies even to vehicles not used on the road.

In Shelby County, for example, the tax on a private passenger vehicle valued at $16,800 would be approximately $124 per year.

Sin Taxes

Cigarettes: $0.68 per pack of 20. Counties can add up to $0.25.
Snuff: $0.02 to $0.03 per ounce
Chewing tobacco: approximately $0.02 per ounce
Loose smoking tobacco: $0.04 to $0.06 per ounce
Cigars: $0.04 to $0.40 per 10 cigars (depending on price)

Beer: $1.05 per gallon
Wine: $1.70 per gallon (up to 14% alcohol)
Liquor: $18.27 per gallon
Alabama directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.

Taxes On Wireless Service

10.53%

Inheritance and Estate Taxes

None.

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