Alabama Tax Rates, Collections, and Burdens
How does Alabama’s tax code compare? Alabama has a graduated individual income tax, with rates ranging from 2.00 percent to 5.00 percent. There are also jurisdictions that collect local income taxes. Alabama has a 6.50 percent corporate income tax rate. Alabama has a 4.00 percent state sales tax rate, a max local sales tax rate of 7.50 percent, and an average combined state and local sales tax rate of 9.29 percent. Alabama has a gas tax rate of 31.20 cents per gallon. Alabama’s tax system ranks 39th overall on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Alabama is no exception.The first step towards understanding the Alabama tax code is knowing the basics.How does Alaskacollecttax revenue?Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication,
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Tax Data by State
Get facts about taxes in your state and around the U.S.
State Tax Data
- Individual Taxes
- Business Taxes
- Sales Taxes
- Property Taxes
Individual Taxes
Top Individual Income Tax Rate
5%See Full Study
State Local Individual Income Tax Collections per Capita
$974Rank: 34
State and Local Tax Burden
9.0%Rank: 13See Full Study
Business Taxes
Top Corporate Income Tax Rate
6.5%See Full Study
State Business Tax Climate Index Ranking
39See Full Study
Sales Taxes
State Sales Tax Rate
4.00%Rank: 40See Full Study
Average Local Sales Tax Rate
5.29%See Full Study
Combined State and Average Local Sales Tax Rate
9.29%Rank: 5See Full Study
State and Local General Sales Tax Collections per Capita
$1155Rank: 32
State Gasoline Tax Rate (cents per gallon)
31.20¢Rank: 25
State Cigarette Tax Rate (dollars per 20-pack)
$0.68Rank: 33
Property Taxes
Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
0.40%Rank: 49
State and Local Property Tax Collections Per Capita
$632Rank: 49
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