Indiana vs Alabama Taxes: Income, Property & Sales

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

Indiana vs Alabama Income Tax Comparison

	Indiana	Alabama
Income Tax Rates & Thresholds	3.23%	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+
Median Income	$70,030	$59,910
Income Tax Paid On Median Household Income	$10,404	$8,703
Income After Tax Based on Median Household Income	$59,626	$51,207

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Indiana vs Alabama Property Tax Comparison

	Indiana	Alabama
Average Property Tax Rate	0.74%	0.37%
Average House Price By State	$232,390	$220,419
Average Property Tax Owed Per Year	$1,720	$816
Income After Income Taxes & Property Taxes Based On Median State Household Income	$57,906	$50,391

Indiana vs Alabama Sales Tax Comparison

	Indiana	Alabama
Average State Sales Tax	7.00%	4.00%
Average Local Sales Tax Across the State	0.00%	5.24%
Average Combined Sales Tax Rate	7.00%	9.24%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,788	$4,262
Maximum Disposable Income Based on Median Household Income	$54,118	$46,129

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

	Indiana	Alabama
Income Tax Owed	$4,300	$4,800
After Tax Income	$35,700	$35,200
Income After Income & Property Tax	$33,980	$34,384
Maximum Disposable Income After Income, Property & Sales Taxes	$31,757	$31,476

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

	Indiana	Alabama
Income Tax Owed	$7,873	$8,728
After Tax Income	$52,127	$51,272
Income After Income & Property Tax	$50,407	$50,456
Maximum Disposable Income After Income, Property & Sales Taxes	$47,110	$46,189

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

	Indiana	Alabama
Income Tax Owed	$12,919	$14,128
After Tax Income	$67,081	$65,872
Income After Income & Property Tax	$65,361	$65,056
Maximum Disposable Income After Income, Property & Sales Taxes	$61,085	$59,554

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

	Indiana	Alabama
Income Tax Owed	$17,965	$19,528
After Tax Income	$82,035	$80,472
Income After Income & Property Tax	$80,315	$79,656
Maximum Disposable Income After Income, Property & Sales Taxes	$75,061	$72,919

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

	Indiana	Alabama
Income Tax Owed	$11,646	$12,856
After Tax Income	$88,354	$87,144
Income After Income & Property Tax	$86,634	$86,328
Maximum Disposable Income After Income, Property & Sales Taxes	$80,967	$79,026

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

	Indiana	Alabama
Income Tax Owed	$23,316	$25,411
After Tax Income	$126,684	$124,589
Income After Income & Property Tax	$124,964	$123,773
Maximum Disposable Income After Income, Property & Sales Taxes	$116,789	$113,304

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

	Indiana	Alabama
Income Tax Owed	$35,931	$38,911
After Tax Income	$164,069	$161,089
Income After Income & Property Tax	$162,349	$160,273
Maximum Disposable Income After Income, Property & Sales Taxes	$151,728	$146,717

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

	Indiana	Alabama
Income Tax Owed	$49,465	$53,330
After Tax Income	$200,535	$196,670
Income After Income & Property Tax	$198,815	$195,854
Maximum Disposable Income After Income, Property & Sales Taxes	$185,809	$179,288

FAQ

Does Indiana or Alabama have lower income taxes?

Indiana’s income tax falls into the following range: 3.23%

Whereas Alabama’s income tax is the following

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

Does Indiana or Alabama have lower property taxes?

Indiana has an average property tax rate of 0.74%

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

Does Indiana or Alabama have lower sales taxes?

Indiana has a state sales tax rate of 7.00% and an average local rate of 0.00% for a combined total rate of 7.00%.

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 Indiana or Alabama?

Based on median household income after income, property and sales taxes Indiana gives you a maximum amount of disposable income of $54,118

In comparison, Alabama gives you $46,129.

More Comparisons:

Indiana vs Louisiana
Indiana vs Kentucky
Indiana vs Oregon
Indiana vs Oklahoma
Indiana 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/