Alabama’s Individual Income Tax System | Alabama Income Tax Law

Alabama Income Tax Law


The Facts on Alabama's Tax Climate

  • 5%
    individual income tax
    Top rate
  • 6.5%
    corporate income tax
    Flat rate
  • 4%
    sales tax
  • $540
    property tax
    collections per capita

Alabama's Individual Income Tax System
Alabama's personal income tax system consists of three brackets and a top rate of 5%. That rate ranks 16th lowest among states levying an individual income tax. Alabama's state and local income tax collections per person were $606 in 2011 which ranked 14th lowest nationally.

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