Colorado vs Alabama Taxes: Income, Property & Sales

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

Colorado vs Alabama Income Tax Comparison

	Colorado	Alabama
Income Tax Rates & Thresholds	4.40%	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+
Median Income	$89,930	$59,910
Income Tax Paid On Median Household Income	$16,055	$8,703
Income After Tax Based on Median Household Income	$73,875	$51,207

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Colorado vs Alabama Property Tax Comparison

	Colorado	Alabama
Average Property Tax Rate	0.40%	0.37%
Average House Price By State	$555,300	$220,419
Average Property Tax Owed Per Year	$2,221	$816
Income After Income Taxes & Property Taxes Based On Median State Household Income	$71,654	$50,391

Colorado vs Alabama Sales Tax Comparison

	Colorado	Alabama
Average State Sales Tax	2.90%	4.00%
Average Local Sales Tax Across the State	4.87%	5.24%
Average Combined Sales Tax Rate	7.77%	9.24%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$5,166	$4,262
Maximum Disposable Income Based on Median Household Income	$66,488	$46,129

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

	Colorado	Alabama
Income Tax Owed	$4,271	$4,800
After Tax Income	$35,729	$35,200
Income After Income & Property Tax	$33,508	$34,384
Maximum Disposable Income After Income, Property & Sales Taxes	$31,092	$31,476

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

	Colorado	Alabama
Income Tax Owed	$8,109	$8,728
After Tax Income	$51,891	$51,272
Income After Income & Property Tax	$49,670	$50,456
Maximum Disposable Income After Income, Property & Sales Taxes	$46,089	$46,189

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

	Colorado	Alabama
Income Tax Owed	$13,419	$14,128
After Tax Income	$66,581	$65,872
Income After Income & Property Tax	$64,360	$65,056
Maximum Disposable Income After Income, Property & Sales Taxes	$59,720	$59,554

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

	Colorado	Alabama
Income Tax Owed	$18,729	$19,528
After Tax Income	$81,271	$80,472
Income After Income & Property Tax	$79,050	$79,656
Maximum Disposable Income After Income, Property & Sales Taxes	$73,350	$72,919

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

	Colorado	Alabama
Income Tax Owed	$11,852	$12,856
After Tax Income	$88,148	$87,144
Income After Income & Property Tax	$85,927	$86,328
Maximum Disposable Income After Income, Property & Sales Taxes	$79,732	$79,026

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

	Colorado	Alabama
Income Tax Owed	$24,182	$25,411
After Tax Income	$125,818	$124,589
Income After Income & Property Tax	$123,597	$123,773
Maximum Disposable Income After Income, Property & Sales Taxes	$114,686	$113,304

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

	Colorado	Alabama
Income Tax Owed	$37,457	$38,911
After Tax Income	$162,543	$161,089
Income After Income & Property Tax	$160,322	$160,273
Maximum Disposable Income After Income, Property & Sales Taxes	$148,763	$146,717

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

	Colorado	Alabama
Income Tax Owed	$51,651	$53,330
After Tax Income	$198,349	$196,670
Income After Income & Property Tax	$196,128	$195,854
Maximum Disposable Income After Income, Property & Sales Taxes	$181,987	$179,288

FAQ

Does Colorado or Alabama have lower income taxes?

Colorado’s income tax falls into the following range: 4.40%

Whereas Alabama’s income tax is the following

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

Does Colorado or Alabama have lower property taxes?

Colorado has an average property tax rate of 0.40%

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

Does Colorado or Alabama have lower sales taxes?

Colorado has a state sales tax rate of 2.90% and an average local rate of 4.87% for a combined total rate of 7.77%.

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 Colorado or Alabama?

Based on median household income after income, property and sales taxes Colorado gives you a maximum amount of disposable income of $66,488

In comparison, Alabama gives you $46,129.

More Comparisons:

Colorado vs Louisiana
Colorado vs Kentucky
Colorado vs Oregon
Colorado vs Oklahoma
Colorado vs Connecticut

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/