Taxes in Florence, Alabama
Complete tax guide for Florence, AL. State income tax up to 5%, 0.4% property tax, 4.23% sales tax. Calculate your total tax burden.
State Income Tax
5%
Alabama
Property Tax
0.4%
Effective rate
Sales Tax
4.23%
Combined rate
Tax Burden
Low
Florence, AL Tax Overview
Population
40,184
Median Income
$42,000
Cost of Living
83.5 (100 = avg)
State Income Tax
5%
Median Home Price
$175,000
Florence Tax Calculator
Pre-filled with Florence median: $42,000
Total Tax Burden in Florence
$8,315
Take-Home: $33,686 · Effective Rate: 19.80%
Federal Tax
$3,002
7.15% eff.
AL State
$2,100
5.00% eff.
FICA
$3,213
7.65% eff.
Take-Home
$33,686
80.20% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $42,000.00 | $3,500.00 |
| Federal Income Tax | -$3,001.50 | -$250.13 |
| Alabama State Tax | -$2,100.00 | -$175.00 |
| Social Security (6.2%) | -$2,604.00 | -$217.00 |
| Medicare (1.45%) | -$609.00 | -$50.75 |
| Take-Home Pay | $33,685.50 | $2,807.13 |
Property Tax in Florence
Median Home
$175,000
Annual Tax
$700
Monthly Tax
$58
Effective Rate
0.4%
Sales Tax in Florence
Combined Rate
4.23%
State Portion
~1.7%
Local Portion
~2.5%
The combined sales tax rate in Florence is 4.23%, which is below the national average of 7.12%. On a $100 purchase, you would pay $4.23 in sales tax.
Tax Burden Comparison
| Tax Type | Florence | Alabama Avg | National Avg |
|---|---|---|---|
| Income Tax | 5% | 5% | 4.6% |
| Property Tax | 0.4% | ~0.4% | 1.1% |
| Sales Tax | 4.23% | ~4.23% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Florence 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.
- Property tax in Florence (0.4%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- 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.
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Very LowCalculate 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 Florence, AL?
Florence, Alabama has a state income tax rate up to 5%. The property tax rate is 0.4% and the combined sales tax rate is 4.23%.
How much is property tax in Florence?
The effective property tax rate in Florence is 0.4%. On the median home price of $175,000, this equals approximately $700 per year or $58 per month. This is below the national average of 1.1%.
What is the sales tax rate in Florence?
The combined sales tax rate in Florence is 4.23%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Florence's tax burden compare to other cities?
Florence has a low overall tax burden. The effective total tax rate for a median-income household is approximately 23.1%. The combination of 5% state income tax, 0.4% property tax, and 4.23% sales tax determines the total burden. Cost of living index is 83.5 (100 = national average).
Are there any local taxes in Florence?
Florence does not impose a separate local or city income tax. Residents pay the state income tax of 5%, federal income tax, and FICA (Social Security and Medicare).