Alabama State Income Tax: Fill & Download for Free

Florida hits the sweet spot for most older retirees:It has a low cost of living,It has no state income tax, including on investment income,It has below average property taxes,It has warm weather, andBecause it's been a popular destination for the elderly for generations, it has lots of communities and lots of options.None of the other states you mention can click all those boxes. Texas, for example, has high property taxes. The other states you mention all have income taxes (although as one comment notes, Georgia does not tax certain classes of retirees or Social Security benefits). And while there are beautiful places to retire to in all the states you list, most people want easy, and that's Florida. Still, of the states you list, South Carolina (#3) and Texas (#7) rank as popular destinations.

Well, it’s not.Let’s compare it to the famously tax-hating US.The median income in the US is $48,516. The median income in the UK is £31,146.That US income, after federal income tax and social security is $40,813. That means the person gets 84.1% of their income.That UK income, after income tax and national insurance is £24,821. That means the person gets 79.6% of their income.The median US tax payer takes home only 4.5% more than the UK taxpayer.But wait, there’s more! 41 states have state income tax (7 don’t at all, and 2 tax interest and dividends). That amount will vary by state, but our median income taxpayer will pay 5% in Alabama and 5.5% in New Jersey. So that 4.5% difference disappears, unless you live in one of the 9 no-income-tax states.AND don’t forget, the UK tax includes health care. The US tax does pay towards health care, but not for the vast majority of tax payers. For that, they have to pay themselves either on their own or through work. The average American pays much more in health care costs than the British taxpayer’s contribution towards the NHS.Then there’s property tax in the US and council tax in the UK. Median house prices are different and property tax will vary by state or municipality. A typical US homeowner will pay more than a typical UK homeowner in tax, but let’s just let them cancel each other out.So then there’s some sort of sales tax/VAT. 45 states have a state sales tax. Many have local sales tax on top of that, some which exceeds the state tax. But we can suffice to say that it won’t get near the UK’s 20% VAT. However…. except for houses and electronics, prices are the same or even lower in the UK with the VAT already in the price. Let’s cancel out those as well.If we the just return to income tax, on the whole, the US taxpayer doesn’t take home all that much more than the UK taxpayer.When compared to other West European countries, the UK tax rates are not higher, and compared to some, even half as much when the income is applied to the tax bands.Unfair? I think not.

Outrageous!So, you purchased something — from Amazon — that cost $413.80.And the state of California charged you an additional sales tax of $30.00.That is a whopping 7.25 percent.And you are outraged.Even worse (gasp) — it would have been $36.17 sales tax - if you lived in my own state. Outrageous, right? My state charges 8.74 percent.Even worse (gasp) — it would have been $36.91, if you lived in Oklahoma. Outrageous, right? Oklahoma’s sales tax is 8.92 percent.Even worse (gasp) — it would have been $37.92, if you lived in Alabama. Outrageous, right? Alabama’s state sales tax is 9.14 percent.In fact, there are nine states that have higher state sales taxes than California. Nine states. California is number ten. And, several of those states have city sales taxes or town sales taxes or county sales taxes that charge an additional sales tax — on top of the state tax. Outrageous, right? So do many of the states with lower sales taxes. Outrageous, right? Insane, right?Now, you could move to any of those states that have lower sales taxes — but then you would notice that they also have higher state income taxes, and higher real estate taxes — to make up the difference.Oops... Sorry — I lost my place… why are you outraged, again? And, what is it that is so “insane”?—P.S. — Do you still have your roads, there? Your interstates? Do you still have public schools? Fire Departments? Police Departments? Water services? Gas services? Sewer lines? Electrical lines? Park districts? Just checking…