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Below is a snapshot of key features of Alabama's tax system. (Scroll Down)
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State & Local Revenue (FY08)
- General Revenue, Own-Source (GROS): $24.4 billion
- General Revenue as a Share of Income: 15.6%
- Tax Revenue: $14 billion
- Tax Revenue as Share of income: 9%
- Personal Income Tax (Share of Tax Revenue): 22.7% (31 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 3.7% (26 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 46.9% (12 out of 51)
- Property Tax (Share of Tax Revenue): 16.4% (46 out of 51)
- Other Taxes (Share of Tax Revenue): 8.6% (5 out of 51)
Personal Income Tax Features (2011)
- Range of Tax Rates: 2.0% - 5.0%
- Standard Deduction: Maximum: $2,500 ($7,500 for Married Couples); Mininum: $2,000 ($4,000 for Married Couples)
- Personal Exemption: $1,500
- Dependent Exemption: $300 - $1,000
- Earned Income Tax Credit (EITC): None
- Deduction for federal income taxes paid
- Standard deduction phases out for high income levels
Corporate Income Tax Features (2011)
- Range of Tax Rates: 6.50%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: No
- Apportionment Factor (Payroll): 33%
- Apportionment Factor (Property): 33%
- Apportionment Factor (Sales): 33%
Sales Tax Features (2011)
- State Sales Tax Rate: 4.00%
- Average Local Sales Tax Rate: 4.25%
- Average Combined State & Local Sales Tax Rate: 8.25%
- State Sales Tax Treatment of Groceries: Taxed at regular rate with no offsetting relief
- Local Sales Tax Treatment of Groceries: Taxed
- Number of Services Taxed: 37 out of 168 surveyed
- Streamlined Sales Tax Membership: No
- Sales tax holiday offered in 2011
Property Tax Features (2011)
- Provides one of the largest property tax homestead exemptions in the country.
- Comparatively low property taxes.
Other Tax & Revenue Features (2011)
- Gasoline Tax Rate (per gallon): $0.209
- Diesel Tax Rate (per gallon): $0.219
- Cigarette Tax Rate (per pack): $0.425
- Estate or Inheritance Tax: No
- Net Lottery Sales Per Capita: N/A
Tax Policy Oversight
- Tax Expenditure Report: None
- Tax Incidence Analysis Capability: Personal income tax only
Last Updated August 25, 2011
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