Alabama vs Kentucky Taxes: Income, Property & Sales

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

Alabama vs Kentucky Income Tax Comparison

	Alabama	Kentucky
Income Tax Rates & Thresholds	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+	5.00%
Median Income	$59,910	$55,880
Income Tax Paid On Median Household Income	$8,703	$7,680
Income After Tax Based on Median Household Income	$51,207	$48,200

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Alabama vs Kentucky Property Tax Comparison

	Alabama	Kentucky
Average Property Tax Rate	0.37%	0.60%
Average House Price By State	$220,419	$201,033
Average Property Tax Owed Per Year	$816	$1,206
Income After Income Taxes & Property Taxes Based On Median State Household Income	$50,391	$46,994

Alabama vs Kentucky Sales Tax Comparison

	Alabama	Kentucky
Average State Sales Tax	4.00%	6.00%
Average Local Sales Tax Across the State	5.24%	0.00%
Average Combined Sales Tax Rate	9.24%	6.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,262	$2,660
Maximum Disposable Income Based on Median Household Income	$46,129	$44,334

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

	Alabama	Kentucky
Income Tax Owed	$4,800	$4,865
After Tax Income	$35,200	$35,135
Income After Income & Property Tax	$34,384	$33,929
Maximum Disposable Income After Income, Property & Sales Taxes	$31,476	$32,008

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

	Alabama	Kentucky
Income Tax Owed	$8,728	$8,793
After Tax Income	$51,272	$51,207
Income After Income & Property Tax	$50,456	$50,001
Maximum Disposable Income After Income, Property & Sales Taxes	$46,189	$47,171

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

	Alabama	Kentucky
Income Tax Owed	$14,128	$14,193
After Tax Income	$65,872	$65,807
Income After Income & Property Tax	$65,056	$64,601
Maximum Disposable Income After Income, Property & Sales Taxes	$59,554	$60,944

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

	Alabama	Kentucky
Income Tax Owed	$19,528	$19,593
After Tax Income	$80,472	$80,407
Income After Income & Property Tax	$79,656	$79,201
Maximum Disposable Income After Income, Property & Sales Taxes	$72,919	$74,718

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

	Alabama	Kentucky
Income Tax Owed	$12,856	$13,081
After Tax Income	$87,144	$86,919
Income After Income & Property Tax	$86,328	$85,713
Maximum Disposable Income After Income, Property & Sales Taxes	$79,026	$80,861

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

	Alabama	Kentucky
Income Tax Owed	$25,411	$25,636
After Tax Income	$124,589	$124,364
Income After Income & Property Tax	$123,773	$123,158
Maximum Disposable Income After Income, Property & Sales Taxes	$113,304	$116,187

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

	Alabama	Kentucky
Income Tax Owed	$38,911	$39,136
After Tax Income	$161,089	$160,864
Income After Income & Property Tax	$160,273	$159,658
Maximum Disposable Income After Income, Property & Sales Taxes	$146,717	$150,621

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

	Alabama	Kentucky
Income Tax Owed	$53,330	$53,555
After Tax Income	$196,670	$196,445
Income After Income & Property Tax	$195,854	$195,239
Maximum Disposable Income After Income, Property & Sales Taxes	$179,288	$184,188

FAQ

Does Alabama or Kentucky have lower income taxes?

Alabama’s income tax falls into the following range:

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

Whereas Kentucky’s income tax is the following 5.00%

Does Alabama or Kentucky have lower property taxes?

Alabama has an average property tax rate of 0.37%

In comparison, Kentucky has an average property tax rate of 0.60%

Does Alabama or Kentucky have lower sales taxes?

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%.

In contrast, Kentucky has a state sales tax rate of 6.00% and an average local rate of 0.00% for a combined total rate of 6.00%.

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

Based on median household income after income, property and sales taxes Alabama gives you a maximum amount of disposable income of $46,129

In comparison, Kentucky gives you $44,334.

More Comparisons:

Alabama vs Oregon
Alabama vs Oklahoma
Alabama vs Connecticut
Alabama vs Utah
Alabama vs Iowa

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/