Alabama vs Montana Taxes: Income, Property & Sales

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

Alabama vs Montana Income Tax Comparison

	Alabama	Montana
Income Tax Rates & Thresholds	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+	1.00%: $0-$3,300 2.00%: $3,301-$5,800 3.00%: $5,801-$8,900 4.00%: $8,901-$12,000 5.00%: $12,001-$15,400 6.00%: $15,401-$19,800 6.75%: $19,801+
Median Income	$59,910	$72,980
Income Tax Paid On Median Household Income	$8,703	$12,678
Income After Tax Based on Median Household Income	$51,207	$60,302

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Alabama vs Montana Property Tax Comparison

	Alabama	Montana
Average Property Tax Rate	0.37%	0.65%
Average House Price By State	$220,419	$447,845
Average Property Tax Owed Per Year	$816	$2,911
Income After Income Taxes & Property Taxes Based On Median State Household Income	$50,391	$57,391

Alabama vs Montana Sales Tax Comparison

	Alabama	Montana
Average State Sales Tax	4.00%	0.00%
Average Local Sales Tax Across the State	5.24%	0.00%
Average Combined Sales Tax Rate	9.24%	0.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,262	$0
Maximum Disposable Income Based on Median Household Income	$46,129	$57,391

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

	Alabama	Montana
Income Tax Owed	$4,800	$4,669
After Tax Income	$35,200	$35,331
Income After Income & Property Tax	$34,384	$32,420
Maximum Disposable Income After Income, Property & Sales Taxes	$31,476	$32,420

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

	Alabama	Montana
Income Tax Owed	$8,728	$8,947
After Tax Income	$51,272	$51,053
Income After Income & Property Tax	$50,456	$48,142
Maximum Disposable Income After Income, Property & Sales Taxes	$46,189	$48,142

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

	Alabama	Montana
Income Tax Owed	$14,128	$14,697
After Tax Income	$65,872	$65,303
Income After Income & Property Tax	$65,056	$62,392
Maximum Disposable Income After Income, Property & Sales Taxes	$59,554	$62,392

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

	Alabama	Montana
Income Tax Owed	$19,528	$20,447
After Tax Income	$80,472	$79,553
Income After Income & Property Tax	$79,656	$76,642
Maximum Disposable Income After Income, Property & Sales Taxes	$72,919	$76,642

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

	Alabama	Montana
Income Tax Owed	$12,856	$13,660
After Tax Income	$87,144	$86,340
Income After Income & Property Tax	$86,328	$83,429
Maximum Disposable Income After Income, Property & Sales Taxes	$79,026	$83,429

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

	Alabama	Montana
Income Tax Owed	$25,411	$27,089
After Tax Income	$124,589	$122,911
Income After Income & Property Tax	$123,773	$120,000
Maximum Disposable Income After Income, Property & Sales Taxes	$113,304	$120,000

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

	Alabama	Montana
Income Tax Owed	$38,911	$41,464
After Tax Income	$161,089	$158,536
Income After Income & Property Tax	$160,273	$155,625
Maximum Disposable Income After Income, Property & Sales Taxes	$146,717	$155,625

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

	Alabama	Montana
Income Tax Owed	$53,330	$56,758
After Tax Income	$196,670	$193,242
Income After Income & Property Tax	$195,854	$190,331
Maximum Disposable Income After Income, Property & Sales Taxes	$179,288	$190,331

FAQ

Does Alabama or Montana 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 Montana’s income tax is the following

• 1.00%: $0-$3,300
• 2.00%: $3,301-$5,800
• 3.00%: $5,801-$8,900
• 4.00%: $8,901-$12,000
• 5.00%: $12,001-$15,400
• 6.00%: $15,401-$19,800
• 6.75%: $19,801+

Does Alabama or Montana have lower property taxes?

Alabama has an average property tax rate of 0.37%

In comparison, Montana has an average property tax rate of 0.65%

Does Alabama or Montana 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, Montana has a state sales tax rate of 0.00% and an average local rate of 0.00% for a combined total rate of 0.00%.

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

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, Montana gives you $57,391.

More Comparisons:

Alabama vs Rhode Island
Alabama vs Delaware
Alabama vs South Dakota
Alabama vs North Dakota
Alabama vs Alaska

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/