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Alabama
By the Numbers

Alabama Below is a snapshot of key features of Alabama's tax system. (Scroll Down)
Personal Income Tax Features (2015)
  • Range of Tax Rates: 2.0% - 5.0%
  • Standard Deduction: Maximum: $2,500 ($7,500 for Married Couples); Mininum: $2,000 ($4,000 for Married Couples)
  • Personal Exemption: $1,500
  • Dependent Exemption: $300 - $1,000
  • Earned Income Tax Credit (EITC): None
  • Deduction for federal income taxes paid
  • Standard deduction phases out for high income levels
Corporate Income Tax Features (2015)
  • Range of Tax Rates: 6.50%
  • Income Level at Which Top Rate Applies: All
  • Combined Reporting: No
  • Apportionment Factor (Payroll): 25%
  • Apportionment Factor (Property): 25%
  • Apportionment Factor (Sales): 50%
Sales Tax Features (2015)
  • State Sales Tax Rate: 4.00%
  • Average Local Sales Tax Rate: 4.55%
  • Average Combined State & Local Sales Tax Rate: 8.55%
  • State Sales Tax Treatment of Groceries: Taxed at regular rate with no offsetting relief
  • Local Sales Tax Treatment of Groceries: Taxed
  • Number of Services Taxed: 37 out of 168 surveyed (2007)
  • Streamlined Sales Tax Membership: No
  • Sales tax holiday offered in 2014
  • Sales tax applies to digital goods and services
Property Tax Features (2015)
  • Provides one of the largest property tax homestead exemptions in the country.
  • Comparatively low property taxes.
Other Tax & Revenue Features (2015)
  • Gasoline Tax Rate (per gallon): $0.209
  • Diesel Tax Rate (per gallon): $0.219
  • Cigarette Tax Rate (per pack): $0.425
  • Estate or Inheritance Tax: No
  • Net Lottery Sales Per Capita: N/A
Tax Policy Oversight
  • Tax Expenditure Report: None
  • Tax Incidence Analysis Capability: Personal income tax only

Last Updated January 13, 2015

Sources & Glossary