Illinois vs Alabama Taxes: Income, Property & Sales

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

Illinois vs Alabama Income Tax Comparison

	Illinois	Alabama
Income Tax Rates & Thresholds	4.95%	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+
Median Income	$78,020	$59,910
Income Tax Paid On Median Household Income	$13,677	$8,703
Income After Tax Based on Median Household Income	$64,343	$51,207

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Illinois vs Alabama Property Tax Comparison

	Illinois	Alabama
Average Property Tax Rate	1.78%	0.37%
Average House Price By State	$254,128	$220,419
Average Property Tax Owed Per Year	$4,523	$816
Income After Income Taxes & Property Taxes Based On Median State Household Income	$59,820	$50,391

Illinois vs Alabama Sales Tax Comparison

	Illinois	Alabama
Average State Sales Tax	6.25%	4.00%
Average Local Sales Tax Across the State	2.56%	5.24%
Average Combined Sales Tax Rate	8.81%	9.24%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,843	$4,262
Maximum Disposable Income Based on Median Household Income	$54,976	$46,129

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

	Illinois	Alabama
Income Tax Owed	$4,903	$4,800
After Tax Income	$35,097	$35,200
Income After Income & Property Tax	$30,574	$34,384
Maximum Disposable Income After Income, Property & Sales Taxes	$28,098	$31,476

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

	Illinois	Alabama
Income Tax Owed	$8,820	$8,728
After Tax Income	$51,180	$51,272
Income After Income & Property Tax	$46,657	$50,456
Maximum Disposable Income After Income, Property & Sales Taxes	$42,879	$46,189

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

	Illinois	Alabama
Income Tax Owed	$14,210	$14,128
After Tax Income	$65,790	$65,872
Income After Income & Property Tax	$61,267	$65,056
Maximum Disposable Income After Income, Property & Sales Taxes	$56,306	$59,554

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

	Illinois	Alabama
Income Tax Owed	$19,600	$19,528
After Tax Income	$80,400	$80,472
Income After Income & Property Tax	$75,877	$79,656
Maximum Disposable Income After Income, Property & Sales Taxes	$69,733	$72,919

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

	Illinois	Alabama
Income Tax Owed	$13,196	$12,856
After Tax Income	$86,804	$87,144
Income After Income & Property Tax	$82,281	$86,328
Maximum Disposable Income After Income, Property & Sales Taxes	$75,619	$79,026

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

	Illinois	Alabama
Income Tax Owed	$25,726	$25,411
After Tax Income	$124,274	$124,589
Income After Income & Property Tax	$119,751	$123,773
Maximum Disposable Income After Income, Property & Sales Taxes	$110,055	$113,304

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

	Illinois	Alabama
Income Tax Owed	$39,201	$38,911
After Tax Income	$160,799	$161,089
Income After Income & Property Tax	$156,276	$160,273
Maximum Disposable Income After Income, Property & Sales Taxes	$143,622	$146,717

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

	Illinois	Alabama
Income Tax Owed	$53,595	$53,330
After Tax Income	$196,405	$196,670
Income After Income & Property Tax	$191,882	$195,854
Maximum Disposable Income After Income, Property & Sales Taxes	$176,345	$179,288

FAQ

Does Illinois or Alabama have lower income taxes?

Illinois’s income tax falls into the following range: 4.95%

Whereas Alabama’s income tax is the following

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

Does Illinois or Alabama have lower property taxes?

Illinois has an average property tax rate of 1.78%

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

Does Illinois or Alabama have lower sales taxes?

Illinois has a state sales tax rate of 6.25% and an average local rate of 2.56% for a combined total rate of 8.81%.

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 Illinois or Alabama?

Based on median household income after income, property and sales taxes Illinois gives you a maximum amount of disposable income of $54,976

In comparison, Alabama gives you $46,129.

More Comparisons:

Illinois vs Louisiana
Illinois vs Kentucky
Illinois vs Oregon
Illinois vs Oklahoma
Illinois 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/