North Carolina vs Alabama Taxes: Income, Property & Sales

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

North Carolina vs Alabama Income Tax Comparison

	North Carolina	Alabama
Income Tax Rates & Thresholds	4.99%	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+
Median Income	$65,070	$59,910
Income Tax Paid On Median Household Income	$9,694	$8,703
Income After Tax Based on Median Household Income	$55,376	$51,207

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North Carolina vs Alabama Property Tax Comparison

	North Carolina	Alabama
Average Property Tax Rate	0.52%	0.37%
Average House Price By State	$321,447	$220,419
Average Property Tax Owed Per Year	$1,672	$816
Income After Income Taxes & Property Taxes Based On Median State Household Income	$53,704	$50,391

North Carolina vs Alabama Sales Tax Comparison

	North Carolina	Alabama
Average State Sales Tax	4.75%	4.00%
Average Local Sales Tax Across the State	2.23%	5.24%
Average Combined Sales Tax Rate	6.98%	9.24%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,504	$4,262
Maximum Disposable Income Based on Median Household Income	$50,200	$46,129

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

	North Carolina	Alabama
Income Tax Owed	$4,400	$4,800
After Tax Income	$35,600	$35,200
Income After Income & Property Tax	$33,928	$34,384
Maximum Disposable Income After Income, Property & Sales Taxes	$31,715	$31,476

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

	North Carolina	Alabama
Income Tax Owed	$8,326	$8,728
After Tax Income	$51,674	$51,272
Income After Income & Property Tax	$50,002	$50,456
Maximum Disposable Income After Income, Property & Sales Taxes	$46,740	$46,189

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

	North Carolina	Alabama
Income Tax Owed	$13,724	$14,128
After Tax Income	$66,276	$65,872
Income After Income & Property Tax	$64,604	$65,056
Maximum Disposable Income After Income, Property & Sales Taxes	$60,389	$59,554

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

	North Carolina	Alabama
Income Tax Owed	$19,122	$19,528
After Tax Income	$80,878	$80,472
Income After Income & Property Tax	$79,206	$79,656
Maximum Disposable Income After Income, Property & Sales Taxes	$74,039	$72,919

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

	North Carolina	Alabama
Income Tax Owed	$12,198	$12,856
After Tax Income	$87,802	$87,144
Income After Income & Property Tax	$86,130	$86,328
Maximum Disposable Income After Income, Property & Sales Taxes	$80,511	$79,026

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

	North Carolina	Alabama
Income Tax Owed	$24,748	$25,411
After Tax Income	$125,252	$124,589
Income After Income & Property Tax	$123,580	$123,773
Maximum Disposable Income After Income, Property & Sales Taxes	$115,517	$113,304

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

	North Carolina	Alabama
Income Tax Owed	$38,243	$38,911
After Tax Income	$161,757	$161,089
Income After Income & Property Tax	$160,085	$160,273
Maximum Disposable Income After Income, Property & Sales Taxes	$149,641	$146,717

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

	North Carolina	Alabama
Income Tax Owed	$52,657	$53,330
After Tax Income	$197,343	$196,670
Income After Income & Property Tax	$195,671	$195,854
Maximum Disposable Income After Income, Property & Sales Taxes	$182,905	$179,288

FAQ

Does North Carolina or Alabama have lower income taxes?

North Carolina’s income tax falls into the following range: 4.99%

Whereas Alabama’s income tax is the following

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

Does North Carolina or Alabama have lower property taxes?

North Carolina has an average property tax rate of 0.52%

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

Does North Carolina or Alabama have lower sales taxes?

North Carolina has a state sales tax rate of 4.75% and an average local rate of 2.23% for a combined total rate of 6.98%.

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 North Carolina or Alabama?

Based on median household income after income, property and sales taxes North Carolina gives you a maximum amount of disposable income of $50,200

In comparison, Alabama gives you $46,129.

More Comparisons:

North Carolina vs Louisiana
North Carolina vs Kentucky
North Carolina vs Oregon
North Carolina vs Oklahoma
North Carolina 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/