Alabama

What's New



By the Numbers

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 Standard deduction phases out for high income levels
    Income Level at Which Top Rate Applies N/A
    Combined Reporting 6.50%
    Apportionment Factor (Payroll) All
    Apportionment Factor (Property) No
    Apportionment Factor (Sales) 25%
    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