Alabama has a top income tax rate of 5%, the 5th highest combined sales tax (9.46%) and the federal $7.25 minimum wage as of 2026.
$8,806 a year: that is roughly what a Alabama homeowner earning $75,000 pays in state income tax ($3,560), sales tax on $25,000 of purchases ($2,365), property tax on a $300,000 house ($1,110) and electricity at 900 kWh a month ($1,771).
Alabama uses a graduated scale with 3 rates, topping out at 5%. Single filers' standard deduction: $3,000. On $50,000 of wages, a single filer's Alabama tax works out to about $2,310 (4.6% of wages); on $100,000 it is about $4,810 (4.8%). Source: Tax Foundation, January 1, 2026.
| Rate | Single filers | Married filing jointly |
|---|---|---|
| 2% | over $0 | over $0 |
| 4% | over $500 | over $1,000 |
| 5% | over $3,000 | over $6,000 |
Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Alabama's brackets above. Open the paycheck calculator set to Alabama to add a 401(k), change pay frequency or filing status.
| Salary | Federal tax | FICA | State tax | Take-home (year) | Per biweekly check |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,825 | $2,310 | $40,045 | $1,540 |
| $75,000 | $7,670 | $5,738 | $3,560 | $58,032 | $2,232 |
| $100,000 | $13,170 | $7,650 | $4,810 | $74,370 | $2,860 |
The state rate is 4.00% and local governments add 5.46% on average, for a combined 9.46%, 5th highest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $95 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.
Alabama follows the federal minimum of $7.25 an hour (Alabama has no state minimum wage above the federal level, so the federal rate applies to employers covered by the Fair Labor Standards Act), which is $15,080 a year for full-time work (2,080 hours). Source: U.S. Department of Labor, July 1, 2026.
Homeowners in Alabama paid property taxes equal to 0.37% of home value on average, the 2nd lowest effective rate (median state 0.79%). On a $300,000 home that is about $1,110 a year, or $92 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.
Residential electricity averaged 16.40¢ per kWh in July 2026, the 24th highest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $148 before fixed charges. Source: U.S. EIA, July 2026 data.
Among the 4 states it borders, Alabama has the lowest property tax rate of its neighbors (0.37%) and the highest electricity price of its neighbors (16.40¢).
| State | Top income tax | Sales tax | Min. wage | Property tax | Electricity |
|---|---|---|---|---|---|
| Alabama | 5% | 9.46% | $7.25 | 0.37% | 16.40¢ |
| Florida | None | 6.98% | $14.00 | 0.78% | 15.03¢ |
| Georgia | 5.19% | 7.56% | $7.25 | 0.79% | 16.27¢ |
| Mississippi | 4% | 7.06% | $7.25 | 0.58% | 14.54¢ |
| Tennessee | None | 9.61% | $7.25 | 0.52% | 13.71¢ |
Alabama figures use statewide averages and skip credits, exemptions and local income taxes; check Alabama revenue and labor department sites before filing or hiring.
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