Michigan vs Alabama Taxes: Income, Property & Sales

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

Michigan vs Alabama Income Tax Comparison

	Michigan	Alabama
Income Tax Rates & Thresholds	4.25%	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+
Median Income	$68,990	$59,910
Income Tax Paid On Median Household Income	$10,665	$8,703
Income After Tax Based on Median Household Income	$58,325	$51,207

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Michigan vs Alabama Property Tax Comparison

	Michigan	Alabama
Average Property Tax Rate	1.06%	0.37%
Average House Price By State	$233,019	$220,419
Average Property Tax Owed Per Year	$2,470	$816
Income After Income Taxes & Property Taxes Based On Median State Household Income	$55,855	$50,391

Michigan vs Alabama Sales Tax Comparison

	Michigan	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	$3,162	$4,262
Maximum Disposable Income Based on Median Household Income	$52,693	$46,129

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

	Michigan	Alabama
Income Tax Owed	$4,528	$4,800
After Tax Income	$35,472	$35,200
Income After Income & Property Tax	$33,002	$34,384
Maximum Disposable Income After Income, Property & Sales Taxes	$31,134	$31,476

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

	Michigan	Alabama
Income Tax Owed	$8,305	$8,728
After Tax Income	$51,695	$51,272
Income After Income & Property Tax	$49,225	$50,456
Maximum Disposable Income After Income, Property & Sales Taxes	$46,439	$46,189

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

	Michigan	Alabama
Income Tax Owed	$13,555	$14,128
After Tax Income	$66,445	$65,872
Income After Income & Property Tax	$63,975	$65,056
Maximum Disposable Income After Income, Property & Sales Taxes	$60,354	$59,554

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

	Michigan	Alabama
Income Tax Owed	$18,805	$19,528
After Tax Income	$81,195	$80,472
Income After Income & Property Tax	$78,725	$79,656
Maximum Disposable Income After Income, Property & Sales Taxes	$74,269	$72,919

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

	Michigan	Alabama
Income Tax Owed	$12,306	$12,856
After Tax Income	$87,694	$87,144
Income After Income & Property Tax	$85,224	$86,328
Maximum Disposable Income After Income, Property & Sales Taxes	$80,400	$79,026

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

	Michigan	Alabama
Income Tax Owed	$24,486	$25,411
After Tax Income	$125,514	$124,589
Income After Income & Property Tax	$123,044	$123,773
Maximum Disposable Income After Income, Property & Sales Taxes	$116,079	$113,304

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

	Michigan	Alabama
Income Tax Owed	$37,611	$38,911
After Tax Income	$162,389	$161,089
Income After Income & Property Tax	$159,919	$160,273
Maximum Disposable Income After Income, Property & Sales Taxes	$150,867	$146,717

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

	Michigan	Alabama
Income Tax Owed	$51,655	$53,330
After Tax Income	$198,345	$196,670
Income After Income & Property Tax	$195,875	$195,854
Maximum Disposable Income After Income, Property & Sales Taxes	$184,788	$179,288

FAQ

Does Michigan or Alabama have lower income taxes?

Michigan’s income tax falls into the following range: 4.25%

Whereas Alabama’s income tax is the following

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

Does Michigan or Alabama have lower property taxes?

Michigan has an average property tax rate of 1.06%

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

Does Michigan or Alabama have lower sales taxes?

Michigan 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 Michigan or Alabama?

Based on median household income after income, property and sales taxes Michigan gives you a maximum amount of disposable income of $52,693

In comparison, Alabama gives you $46,129.

More Comparisons:

Michigan vs Louisiana
Michigan vs Kentucky
Michigan vs Oregon
Michigan vs Oklahoma
Michigan 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/