Taxes in Hoover, Alabama
Complete tax guide for Hoover, AL. State income tax up to 5%, 0.38% property tax, 9% sales tax. Calculate your total tax burden.
State Income Tax
5%
Alabama
Property Tax
0.38%
Effective rate
Sales Tax
9%
Combined rate
Tax Burden
Moderate
Hoover, AL Tax Overview
Affluent suburb of Birmingham
Population
92,606
Median Income
$80,192
Cost of Living
98.5 (100 = avg)
State Income Tax
5%
Median Home Price
$295,000
Hoover Tax Calculator
Pre-filled with Hoover median: $80,192
Total Tax Burden in Hoover
$19,401
Take-Home: $60,791 · Effective Rate: 24.19%
Federal Tax
$9,256
11.54% eff.
AL State
$4,010
5.00% eff.
FICA
$6,135
7.65% eff.
Take-Home
$60,791
75.81% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $80,192.00 | $6,682.67 |
| Federal Income Tax | -$9,256.24 | -$771.35 |
| Alabama State Tax | -$4,009.60 | -$334.13 |
| Social Security (6.2%) | -$4,971.90 | -$414.33 |
| Medicare (1.45%) | -$1,162.78 | -$96.90 |
| Take-Home Pay | $60,791.47 | $5,065.96 |
Property Tax in Hoover
Median Home
$295,000
Annual Tax
$1,121
Monthly Tax
$93
Effective Rate
0.38%
Sales Tax in Hoover
Combined Rate
9%
State Portion
~6.5%
Local Portion
~2.5%
The combined sales tax rate in Hoover is 9%, which is above the national average of 7.12%. On a $100 purchase, you would pay $9.00 in sales tax.
Tax Burden Comparison
| Tax Type | Hoover | Alabama Avg | National Avg |
|---|---|---|---|
| Income Tax | 5% | 5% | 4.6% |
| Property Tax | 0.38% | ~0.38% | 1.1% |
| Sales Tax | 9% | ~9% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Hoover 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 Hoover (0.38%) 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 9% 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 Hoover, AL?
Hoover, Alabama has a state income tax rate up to 5%. The property tax rate is 0.38% and the combined sales tax rate is 9%. Affluent suburb of Birmingham
How much is property tax in Hoover?
The effective property tax rate in Hoover is 0.38%. On the median home price of $295,000, this equals approximately $1,121 per year or $93 per month. This is below the national average of 1.1%.
What is the sales tax rate in Hoover?
The combined sales tax rate in Hoover is 9%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Hoover's tax burden compare to other cities?
Hoover has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 28.5%. The combination of 5% state income tax, 0.38% property tax, and 9% sales tax determines the total burden. Cost of living index is 98.5 (100 = national average).
Are there any local taxes in Hoover?
Hoover 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). Affluent suburb of Birmingham