Tennessee vs Alabama Taxes: Income, Property & Sales

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

Tennessee vs Alabama Income Tax Comparison

	Tennessee	Alabama
Income Tax Rates & Thresholds	None	2.00%: $0-$500 4.00%: $501-$3000 5.00%: $3,001+
Median Income	$65,380	$59,910
Income Tax Paid On Median Household Income	$7,151	$8,703
Income After Tax Based on Median Household Income	$58,229	$51,207

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Tennessee vs Alabama Property Tax Comparison

	Tennessee	Alabama
Average Property Tax Rate	0.42%	0.37%
Average House Price By State	$310,782	$220,419
Average Property Tax Owed Per Year	$1,305	$816
Income After Income Taxes & Property Taxes Based On Median State Household Income	$56,924	$50,391

Tennessee vs Alabama Sales Tax Comparison

	Tennessee	Alabama
Average State Sales Tax	7.00%	4.00%
Average Local Sales Tax Across the State	2.55%	5.24%
Average Combined Sales Tax Rate	9.55%	9.24%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,962	$4,262
Maximum Disposable Income Based on Median Household Income	$51,961	$46,129

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

	Tennessee	Alabama
Income Tax Owed	$3,040	$4,800
After Tax Income	$36,960	$35,200
Income After Income & Property Tax	$35,655	$34,384
Maximum Disposable Income After Income, Property & Sales Taxes	$32,547	$31,476

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

	Tennessee	Alabama
Income Tax Owed	$5,968	$8,728
After Tax Income	$54,032	$51,272
Income After Income & Property Tax	$52,727	$50,456
Maximum Disposable Income After Income, Property & Sales Taxes	$48,130	$46,189

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

	Tennessee	Alabama
Income Tax Owed	$10,368	$14,128
After Tax Income	$69,632	$65,872
Income After Income & Property Tax	$68,327	$65,056
Maximum Disposable Income After Income, Property & Sales Taxes	$62,370	$59,554

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

	Tennessee	Alabama
Income Tax Owed	$14,768	$19,528
After Tax Income	$85,232	$80,472
Income After Income & Property Tax	$83,927	$79,656
Maximum Disposable Income After Income, Property & Sales Taxes	$76,610	$72,919

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

	Tennessee	Alabama
Income Tax Owed	$8,481	$12,856
After Tax Income	$91,519	$87,144
Income After Income & Property Tax	$90,214	$86,328
Maximum Disposable Income After Income, Property & Sales Taxes	$82,349	$79,026

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

	Tennessee	Alabama
Income Tax Owed	$18,536	$25,411
After Tax Income	$131,464	$124,589
Income After Income & Property Tax	$130,159	$123,773
Maximum Disposable Income After Income, Property & Sales Taxes	$118,812	$113,304

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

	Tennessee	Alabama
Income Tax Owed	$29,536	$38,911
After Tax Income	$170,464	$161,089
Income After Income & Property Tax	$169,159	$160,273
Maximum Disposable Income After Income, Property & Sales Taxes	$154,412	$146,717

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

	Tennessee	Alabama
Income Tax Owed	$41,455	$53,330
After Tax Income	$208,545	$196,670
Income After Income & Property Tax	$207,240	$195,854
Maximum Disposable Income After Income, Property & Sales Taxes	$189,174	$179,288

FAQ

Does Tennessee or Alabama have lower income taxes?

Tennessee’s income tax falls into the following range: None

Whereas Alabama’s income tax is the following

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

Does Tennessee or Alabama have lower property taxes?

Tennessee has an average property tax rate of 0.42%

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

Does Tennessee or Alabama have lower sales taxes?

Tennessee has a state sales tax rate of 7.00% and an average local rate of 2.55% for a combined total rate of 9.55%.

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 Tennessee or Alabama?

Based on median household income after income, property and sales taxes Tennessee gives you a maximum amount of disposable income of $51,961

In comparison, Alabama gives you $46,129.

More Comparisons:

Tennessee vs Louisiana
Tennessee vs Kentucky
Tennessee vs Oregon
Tennessee vs Oklahoma
Tennessee 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/