Income Tax
Alabama’s income tax tops out at 5%, and some cities levy occupational taxes on wages.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED ALINCTAX).
Property Tax
Alabama has the second-lowest effective property tax rate in the U.S., at about 0.39%.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED ALPROPTAX).
| Indicator | Alabama | U.S. |
|---|---|---|
| Effective property tax rate | 0.39 | 0.9 |
Sales Tax
Alabama's combined state and average local sales tax rate is about 9.29%, among the highest in the U.S.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED ALSALESTAX).
| Indicator | Alabama | U.S. |
|---|---|---|
| Combined sales tax rate | 9.29 | 7.12 |
Tax Burden
Alabama's state and local tax burden is about 8.5% of income, among the lowest in the nation.
State tax collections per resident
1990–2025Census tax collections (ALTOTLTAX) divided by Census resident population (ALPOP).
| Indicator | Alabama | U.S. |
|---|---|---|
| Tax burden (% of income) | 8.5 | 11.2 |
Tax Revenue
Alabama collected about $16 billion in state tax revenue in fiscal year 2023.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED ALTOTLTAX).