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Alabama
By the Numbers

Alabama Below is a snapshot of key features of Alabama's tax system. (Scroll Down)
State & Local Revenue (FY10)
  • General Revenue, Own-Source (GROS): $23.9 billion
  • General Revenue as a Share of Income: 15.0%
  • Tax Revenue: $13.3 billion
  • Tax Revenue as Share of income: 8.3%
  • Personal Income Tax (Share of Tax Revenue): 20.3% (30 out of 51)
  • Corporate Income Tax (Share of Tax Revenue): 3.2 % ( 17 out of 51)
  • Sales & Excise Tax (Share of Tax Revenue): 47.5 % ( 9 out of 51)
  • Property Tax (Share of Tax Revenue): 19.4 % ( 49 out of 51)
  • Other Taxes (Share of Tax Revenue): 8.0 % (11 out of 51)
Personal Income Tax Features (2012)
  • 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 (2012)
  • 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 (2012)
  • 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 2013
  • Sales tax applies to digital goods and services
Property Tax Features (2012)
  • Provides one of the largest property tax homestead exemptions in the country.
  • Comparatively low property taxes.
Other Tax & Revenue Features (2012)
  • 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 October 4, 2012

Sources & Glossary