Minnesota vs Alabama Taxes: Income, Property & Sales

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

Minnesota vs Alabama Income Tax Comparison

	Minnesota	Alabama
Income Tax Rates & Thresholds	5.35%: $0-$28,080 6.80%: $28,081-$92,230 7.85%: $92,231-$171,220 9.85%: $171,221+	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+
Median Income	$90,390	$59,910
Income Tax Paid On Median Household Income	$17,516	$8,703
Income After Tax Based on Median Household Income	$72,874	$51,207

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Minnesota vs Alabama Property Tax Comparison

	Minnesota	Alabama
Average Property Tax Rate	0.90%	0.37%
Average House Price By State	$336,279	$220,419
Average Property Tax Owed Per Year	$3,027	$816
Income After Income Taxes & Property Taxes Based On Median State Household Income	$69,847	$50,391

Minnesota vs Alabama Sales Tax Comparison

	Minnesota	Alabama
Average State Sales Tax	6.88%	4.00%
Average Local Sales Tax Across the State	0.61%	5.24%
Average Combined Sales Tax Rate	7.49%	9.24%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,867	$4,262
Maximum Disposable Income Based on Median Household Income	$64,980	$46,129

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

	Minnesota	Alabama
Income Tax Owed	$4,490	$4,800
After Tax Income	$35,510	$35,200
Income After Income & Property Tax	$32,483	$34,384
Maximum Disposable Income After Income, Property & Sales Taxes	$30,220	$31,476

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

	Minnesota	Alabama
Income Tax Owed	$8,763	$8,728
After Tax Income	$51,237	$51,272
Income After Income & Property Tax	$48,210	$50,456
Maximum Disposable Income After Income, Property & Sales Taxes	$44,851	$46,189

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

	Minnesota	Alabama
Income Tax Owed	$14,523	$14,128
After Tax Income	$65,477	$65,872
Income After Income & Property Tax	$62,450	$65,056
Maximum Disposable Income After Income, Property & Sales Taxes	$58,099	$59,554

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

	Minnesota	Alabama
Income Tax Owed	$20,283	$19,528
After Tax Income	$79,717	$80,472
Income After Income & Property Tax	$76,690	$79,656
Maximum Disposable Income After Income, Property & Sales Taxes	$71,347	$72,919

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

	Minnesota	Alabama
Income Tax Owed	$12,931	$12,856
After Tax Income	$87,069	$87,144
Income After Income & Property Tax	$84,042	$86,328
Maximum Disposable Income After Income, Property & Sales Taxes	$78,186	$79,026

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

	Minnesota	Alabama
Income Tax Owed	$26,386	$25,411
After Tax Income	$123,614	$124,589
Income After Income & Property Tax	$120,587	$123,773
Maximum Disposable Income After Income, Property & Sales Taxes	$112,185	$113,304

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

	Minnesota	Alabama
Income Tax Owed	$40,903	$38,911
After Tax Income	$159,097	$161,089
Income After Income & Property Tax	$156,070	$160,273
Maximum Disposable Income After Income, Property & Sales Taxes	$145,195	$146,717

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

	Minnesota	Alabama
Income Tax Owed	$56,747	$53,330
After Tax Income	$193,253	$196,670
Income After Income & Property Tax	$190,226	$195,854
Maximum Disposable Income After Income, Property & Sales Taxes	$176,971	$179,288

FAQ

Does Minnesota or Alabama have lower income taxes?

Minnesota’s income tax falls into the following range:

• 5.35%: $0-$28,080
• 6.80%: $28,081-$92,230
• 7.85%: $92,231-$171,220
• 9.85%: $171,221+

Whereas Alabama’s income tax is the following

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

Does Minnesota or Alabama have lower property taxes?

Minnesota has an average property tax rate of 0.90%

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

Does Minnesota or Alabama have lower sales taxes?

Minnesota has a state sales tax rate of 6.88% and an average local rate of 0.61% for a combined total rate of 7.49%.

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 Minnesota or Alabama?

Based on median household income after income, property and sales taxes Minnesota gives you a maximum amount of disposable income of $64,980

In comparison, Alabama gives you $46,129.

More Comparisons:

Minnesota vs Louisiana
Minnesota vs Kentucky
Minnesota vs Oregon
Minnesota vs Oklahoma
Minnesota 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/