Maryland vs Alabama Taxes: Income, Property & Sales

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

Maryland vs Alabama Income Tax Comparison

	Maryland	Alabama
Income Tax Rates & Thresholds	2.00%: $0-$1,000 3.00%: $1,001-$2,000 4.00%: $2,001-$3,000 4.75%: $3,001-$100,000 5.00%: $100,001-$125,000 5.25%: $125,001-$150,000 5.50%: $150,001-$250,000 5.75%: $250,001+	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+
Median Income	$108,200	$59,910
Income Tax Paid On Median Household Income	$21,525	$8,703
Income After Tax Based on Median Household Income	$86,675	$51,207

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Maryland vs Alabama Property Tax Comparison

	Maryland	Alabama
Average Property Tax Rate	0.76%	0.37%
Average House Price By State	$416,643	$220,419
Average Property Tax Owed Per Year	$3,166	$816
Income After Income Taxes & Property Taxes Based On Median State Household Income	$83,509	$50,391

Maryland vs Alabama Sales Tax Comparison

	Maryland	Alabama
Average State Sales Tax	6.00%	4.00%
Average Local Sales Tax Across the State	0.00%	5.24%
Average Combined Sales Tax Rate	6.00%	9.24%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,727	$4,262
Maximum Disposable Income Based on Median Household Income	$78,782	$46,129

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

	Maryland	Alabama
Income Tax Owed	$4,624	$4,800
After Tax Income	$35,376	$35,200
Income After Income & Property Tax	$32,210	$34,384
Maximum Disposable Income After Income, Property & Sales Taxes	$30,386	$31,476

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

	Maryland	Alabama
Income Tax Owed	$8,502	$8,728
After Tax Income	$51,498	$51,272
Income After Income & Property Tax	$48,332	$50,456
Maximum Disposable Income After Income, Property & Sales Taxes	$45,596	$46,189

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

	Maryland	Alabama
Income Tax Owed	$13,852	$14,128
After Tax Income	$66,148	$65,872
Income After Income & Property Tax	$62,982	$65,056
Maximum Disposable Income After Income, Property & Sales Taxes	$59,417	$59,554

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

	Maryland	Alabama
Income Tax Owed	$19,202	$19,528
After Tax Income	$80,798	$80,472
Income After Income & Property Tax	$77,632	$79,656
Maximum Disposable Income After Income, Property & Sales Taxes	$73,237	$72,919

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

	Maryland	Alabama
Income Tax Owed	$12,651	$12,856
After Tax Income	$87,349	$87,144
Income After Income & Property Tax	$84,183	$86,328
Maximum Disposable Income After Income, Property & Sales Taxes	$79,417	$79,026

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

	Maryland	Alabama
Income Tax Owed	$25,081	$25,411
After Tax Income	$124,919	$124,589
Income After Income & Property Tax	$121,753	$123,773
Maximum Disposable Income After Income, Property & Sales Taxes	$114,861	$113,304

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

	Maryland	Alabama
Income Tax Owed	$38,588	$38,911
After Tax Income	$161,412	$161,089
Income After Income & Property Tax	$158,246	$160,273
Maximum Disposable Income After Income, Property & Sales Taxes	$149,288	$146,717

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

	Maryland	Alabama
Income Tax Owed	$53,167	$53,330
After Tax Income	$196,833	$196,670
Income After Income & Property Tax	$193,667	$195,854
Maximum Disposable Income After Income, Property & Sales Taxes	$182,704	$179,288

FAQ

Does Maryland or Alabama have lower income taxes?

Maryland’s income tax falls into the following range:

• 2.00%: $0-$1,000
• 3.00%: $1,001-$2,000
• 4.00%: $2,001-$3,000
• 4.75%: $3,001-$100,000
• 5.00%: $100,001-$125,000
• 5.25%: $125,001-$150,000
• 5.50%: $150,001-$250,000
• 5.75%: $250,001+

Whereas Alabama’s income tax is the following

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

Does Maryland or Alabama have lower property taxes?

Maryland has an average property tax rate of 0.76%

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

Does Maryland or Alabama have lower sales taxes?

Maryland 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%.

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 Maryland or Alabama?

Based on median household income after income, property and sales taxes Maryland gives you a maximum amount of disposable income of $78,782

In comparison, Alabama gives you $46,129.

More Comparisons:

Maryland vs Louisiana
Maryland vs Kentucky
Maryland vs Oregon
Maryland vs Oklahoma
Maryland 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/