Alabama (AL) Tax Rates — 2026
Income Tax
5%
Sales Tax
9.27%
Property Tax
0.39%
Income Tax
Type: Graduated (marginal brackets)
| From | To | Rate |
|---|---|---|
| $0 | $500 | 2% |
| $500 | $3,000 | 4% |
| $3,000 | and above | 5% |
Standard Deduction: Single: $2,500 | Married Filing Jointly: $7,500
Sales Tax
State Rate4%
Avg Local Rate5.27%
Combined Rate9.27%
Groceries: Taxed
+2.70% vs national avg
Property Tax
Effective Rate0.39%
Median Annual Tax$658
-0.68% vs national avg (1.07%)
Retirement Income Tax
Social SecurityNO
PensionsEXEMPT
401(k) / IRAYES
Estate & Inheritance Tax
Has Estate Tax: NO
Corporate Tax
Corporate Income Tax Rate: 6.5%
Additional Notes
Alabama allows a full deduction for federal income taxes paid on state returns. Public and private pension income is exempt from state tax.
Compare with another state:
Sources: Alabama Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.