Taxes in Alabama
Every state-level tax in Alabama, in one place—income, sales, property, corporate, estate, transfer, and excise taxes. Figures sourced from the IRS, U.S. Census Bureau, and Tax Foundation.
Alabama’s most dramatic tax distinction is its property tax: a state median county rate ranking 50th out of 51, meaning only one state in the country taxes property more lightly. For a resident, that translates into unusually small annual property tax bills. The outlier at the other extreme is the spirits tax, which ranks 3rd of 51 nationally — among the steepest anywhere. So Alabama pairs some of the nation’s gentlest property taxation with some of its harshest taxes on spirits. A relocator weighing housing costs against everyday purchases should note that the savings on property are substantial, while a bottle of liquor carries a premium.
State income tax
5.00% 3 brackets · graduated.
Local income tax: Birmingham levies an occupational tax of 1%. See all local income taxes.
Sales tax
The combined state + local sales tax rate is 9.46%. State rate 4.00% plus an average 5.46% local.
Estate & inheritance tax
Alabama imposes no state estate or inheritance tax—only the federal estate tax applies.
Real estate transfer tax
Alabama levies a transfer tax of 0.100% — State deed tax per $1,000 of value.
Cigarette Tax
Alabama levies a cigarette tax of $0.68 per pack of 20. Federal excise adds $1.01 per pack.
Gas Tax
Alabama levies a gas tax of 31.00¢ per gallon. Federal excise adds 18.4¢ per gallon. Excludes local taxes and environmental/carbon-related costs.
Beer Tax
Alabama levies a beer tax of $0.533 per gallon. Federal excise adds $0.113–$0.581 per gallon depending on brewery size.
Wine Tax
Alabama levies a wine tax of $1.700 per gallon. Federal excise adds $1.07 per gallon (11% still wine). MS, NH, PA, UT, WY are control states with no published excise rate.
Spirits Tax
Alabama levies a spirits tax of $22.870 per gallon. Federal excise adds $5.40 per gallon (40% ABV). NH and WY are control states with an effective $0.00 rate.
Property tax by county
The state's median county effective property tax rate is 0.32%. Compare counties below for local rates.
Counties in Alabama by property tax rate
| County | Effective rate | Median home value |
|---|---|---|
| Jefferson County | 0.59% | $240,000 |
| Greene County | 0.55% | $81,200 |
| Macon County | 0.50% | $102,000 |
| Lee County | 0.48% | $262,200 |
| Mobile County | 0.47% | $190,700 |
| Shelby County | 0.44% | $326,100 |
| Sumter County | 0.43% | $82,600 |
| Calhoun County | 0.42% | $156,600 |
| Dallas County | 0.41% | $94,600 |
| Barbour County | 0.41% | $112,900 |
| Montgomery County | 0.41% | $171,900 |
| Bullock County | 0.41% | $81,700 |
| Colbert County | 0.40% | $171,000 |
| Madison County | 0.40% | $299,200 |
| Lowndes County | 0.39% | $86,300 |
| Escambia County | 0.39% | $136,500 |
| Etowah County | 0.39% | $167,100 |
| Chambers County | 0.39% | $135,800 |
| Cherokee County | 0.38% | $179,700 |
| Marengo County | 0.38% | $107,400 |
| Russell County | 0.38% | $165,700 |
| Lauderdale County | 0.38% | $200,300 |
| Talladega County | 0.36% | $149,200 |
| Marshall County | 0.36% | $201,500 |
| Butler County | 0.36% | $99,800 |
| Coffee County | 0.36% | $188,600 |
| Henry County | 0.34% | $161,000 |
| Geneva County | 0.34% | $130,700 |
| Morgan County | 0.34% | $212,000 |
| Chilton County | 0.33% | $161,300 |