Taxes in Birmingham, Alabama
Complete tax guide for Birmingham, AL. State income tax up to 5%, 0.44% property tax, 10% sales tax. Calculate your total tax burden.
State Income Tax
5%
Alabama
Property Tax
0.44%
Effective rate
Sales Tax
10%
Combined rate
Tax Burden
Very Low
Birmingham, AL Tax Overview
Birmingham levies a 1% occupational tax on wages earned in the city
Population
197,575
Median Income
$35,346
Cost of Living
87.5 (100 = avg)
State Income Tax
5%
Local Income Tax
1%
Median Home Price
$115,000
Birmingham Tax Calculator
Pre-filled with Birmingham median: $35,346
Total Tax Burden in Birmingham
$7,028
Take-Home: $28,318 · Effective Rate: 19.88%
Federal Tax
$2,203
6.23% eff.
AL State + Local
$2,121
6.00% eff.
FICA
$2,704
7.65% eff.
Take-Home
$28,318
80.12% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $35,346.00 | $2,945.50 |
| Federal Income Tax | -$2,203.02 | -$183.59 |
| Alabama State Tax | -$1,767.30 | -$147.28 |
| Birmingham Local Tax (1%) | -$353.46 | -$29.46 |
| Social Security (6.2%) | -$2,191.45 | -$182.62 |
| Medicare (1.45%) | -$512.52 | -$42.71 |
| Take-Home Pay | $28,318.25 | $2,359.85 |
Property Tax in Birmingham
Median Home
$115,000
Annual Tax
$506
Monthly Tax
$42
Effective Rate
0.44%
Sales Tax in Birmingham
Combined Rate
10%
State Portion
~7.5%
Local Portion
~2.5%
The combined sales tax rate in Birmingham is 10%, which is above the national average of 7.12%. On a $100 purchase, you would pay $10.00 in sales tax.
Tax Burden Comparison
| Tax Type | Birmingham | Alabama Avg | National Avg |
|---|---|---|---|
| Income Tax | 5% + 1% | 5% | 4.6% |
| Property Tax | 0.44% | ~0.44% | 1.1% |
| Sales Tax | 10% | ~10% | 7.12% |
| Overall Burden | Very Low | — | Moderate |
Tax Saving Tips for Birmingham Residents
- Alabama's income tax rate of 5% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Birmingham has a local income tax of 1%. If you work remotely, verify whether you owe city tax based on where you work or where you live. Some cities only tax people who work within city limits.
- Property tax in Birmingham (0.44%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- The combined sales tax rate of 10% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Alabama
Calculate Your Full Alabama Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Birmingham, AL?
Birmingham, Alabama has a state income tax rate up to 5%, plus a local income tax of 1%. The property tax rate is 0.44% and the combined sales tax rate is 10%. Birmingham levies a 1% occupational tax on wages earned in the city
How much is property tax in Birmingham?
The effective property tax rate in Birmingham is 0.44%. On the median home price of $115,000, this equals approximately $506 per year or $42 per month. This is below the national average of 1.1%.
What is the sales tax rate in Birmingham?
The combined sales tax rate in Birmingham is 10%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Birmingham's tax burden compare to other cities?
Birmingham has a very low overall tax burden. The effective total tax rate for a median-income household is approximately 23.9%. The combination of 5% state income tax, 0.44% property tax, and 10% sales tax determines the total burden. Cost of living index is 87.5 (100 = national average).
Are there any local taxes in Birmingham?
Yes. Birmingham imposes a local income tax of 1% in addition to the state income tax of 5%. Birmingham levies a 1% occupational tax on wages earned in the city