State Income Tax Rate Tax Rate: Low 2% on up to $1,000 of tax-deductible income for married couples , and $500 for other taxpayers. The maximum rate is 5% on more than $6,000 of taxable income for married couples , and more than $3,000 for the other taxpayers. Alabama municipalities study-sports study sports Website study sports com can also impose occupational taxes on salaries and wages.

  Sales Tax: 4% state levy. The Tax Foundation reports that localities could add up to 7.5 percent to this and have an average rate of 9.22 percent.