Alabama Income Tax Law
The Facts on Alabama's Tax Climate
5%individual income taxTop rate
6.5%corporate income taxFlat rate
$540property taxcollections 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.