Texas vs Alabama Taxes: Income, Property & Sales 2024

MoverDB.com

Texas vs Alabama Taxes: Income, Property & Sales

Originally written in English & checked by Managing Editor: Ian Wright
Last Updated:

Does Texas or Alabama have lower taxes? We answer that in a variety of ways below:

Texas vs Alabama Income Tax Comparison

TexasAlabama
Income Tax Rates & ThresholdsNone
  • 2.00%: $0-$500
  • 4.00%: $501-$3000
  • 5.00%: $3,001+
Median Income$74,640$59,910
Income Tax Paid On Median Household Income$9,189$8,703
Income After Tax Based on Median Household Income $65,451$51,207
* Note tax calculation assume filling as a single person rather than married.

Top Accounting Software:

 

Texas vs Alabama Property Tax Comparison

TexasAlabama
Average Property Tax Rate1.25%0.37%
Average House Price By State$305,497$220,419
Average Property Tax Owed Per Year$3,819$816
Income After Income Taxes & Property Taxes Based On Median State Household Income $61,632$50,391
* Again assuming income tax is filed as a single person

Click Here To Help Lower Your Taxes

Texas vs Alabama Sales Tax Comparison

TexasAlabama
Average State Sales Tax6.25%4.00%
Average Local Sales Tax Across the State1.95%5.24%
Average Combined Sales Tax Rate8.20%9.24%
Maximum Amount of Sales Tax Paid Based on Median Household Income $4,671$4,262
Maximum Disposable Income Based on Median Household Income$56,961$46,129
* Maximum disposable is calculated based on earning the median household income and then deducting income, property and sales taxes assuming you spend your entire income.

Click Here To Help Lower Your Taxes

After Tax Comparison Earning $40,000 Per Year Filing As Single

TexasAlabama
Income Tax Owed$3,040$4,800
After Tax Income$36,960$35,200
Income After Income & Property Tax $33,141$34,384
Maximum Disposable Income After Income, Property & Sales Taxes $30,630$31,476

After Tax Comparison Earning $60,000 Per Year Filing As Single

TexasAlabama
Income Tax Owed$5,968$8,728
After Tax Income$54,032$51,272
Income After Income & Property Tax $50,213$50,456
Maximum Disposable Income After Income, Property & Sales Taxes $46,408$46,189

After Tax Comparison Earning $80,000 Per Year Filing As Single

TexasAlabama
Income Tax Owed$10,368$14,128
After Tax Income$69,632$65,872
Income After Income & Property Tax $65,813$65,056
Maximum Disposable Income After Income, Property & Sales Taxes $60,826$59,554

After Tax Comparison Earning $100,000 Per Year Filing As Single

TexasAlabama
Income Tax Owed$14,768$19,528
After Tax Income$85,232$80,472
Income After Income & Property Tax $81,413$79,656
Maximum Disposable Income After Income, Property & Sales Taxes $75,243$72,919

Click Here To Help Lower Your Taxes

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

TexasAlabama
Income Tax Owed$8,481$12,856
After Tax Income$91,519$87,144
Income After Income & Property Tax $87,700$86,328
Maximum Disposable Income After Income, Property & Sales Taxes $81,054$79,026

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

TexasAlabama
Income Tax Owed$18,536$25,411
After Tax Income$131,464$124,589
Income After Income & Property Tax $127,645$123,773
Maximum Disposable Income After Income, Property & Sales Taxes $117,972$113,304

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

TexasAlabama
Income Tax Owed$29,536$38,911
After Tax Income$170,464$161,089
Income After Income & Property Tax $166,645$160,273
Maximum Disposable Income After Income, Property & Sales Taxes $154,016$146,717

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

TexasAlabama
Income Tax Owed$41,455$53,330
After Tax Income$208,545$196,670
Income After Income & Property Tax $204,726$195,854
Maximum Disposable Income After Income, Property & Sales Taxes $189,211$179,288

Click Here To Help Lower Your Taxes

FAQ

Does Texas or Alabama have lower income taxes?

Texas’s income tax falls into the following range: None

Whereas Alabama’s income tax is the following

  • 2.00%: $0-$500
  • 4.00%: $501-$3000
  • 5.00%: $3,001+

Does Texas or Alabama have lower property taxes?

Texas has an average property tax rate of 1.25%

In comparison, Alabama has an average property tax rate of 0.37%

Does Texas or Alabama have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

In contrast, Alabama has a state sales tax rate of 4.00% and an average local rate of 5.24% for a combined total rate of 9.24%.

Do you get to keep more money in Texas or Alabama?

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, Alabama gives you $46,129.

More Comparisons:

Texas vs Louisiana
Texas vs Kentucky
Texas vs Oregon
Texas vs Oklahoma
Texas vs Connecticut

Click Here To Help Lower Your Taxes

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction
https://www.bankrate.com/real-estate/property-tax-by-state/#by-state
https://fred.stlouisfed.org/release/tables?eid=259515&rid=249
https://www.fool.com/the-ascent/research/average-house-price-state/
https://taxfoundation.org/data/all/state/2022-sales-taxes/
https://www.forbes.com/advisor/income-tax-calculator/