Taxes in Montgomery, Alabama
Complete tax guide for Montgomery, AL. State income tax up to 5%, 0.43% property tax, 10% sales tax. Calculate your total tax burden.
State Income Tax
5%
Alabama
Property Tax
0.43%
Effective rate
Sales Tax
10%
Combined rate
Tax Burden
Low
Montgomery, AL Tax Overview
State capital; no local income tax
Population
200,603
Median Income
$45,889
Cost of Living
86.7 (100 = avg)
State Income Tax
5%
Median Home Price
$142,000
Montgomery Tax Calculator
Pre-filled with Montgomery median: $45,889
Total Tax Burden in Montgomery
$9,273
Take-Home: $36,616 · Effective Rate: 20.21%
Federal Tax
$3,468
7.56% eff.
AL State
$2,294
5.00% eff.
FICA
$3,511
7.65% eff.
Take-Home
$36,616
79.79% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $45,889.00 | $3,824.08 |
| Federal Income Tax | -$3,468.18 | -$289.02 |
| Alabama State Tax | -$2,294.45 | -$191.20 |
| Social Security (6.2%) | -$2,845.12 | -$237.09 |
| Medicare (1.45%) | -$665.39 | -$55.45 |
| Take-Home Pay | $36,615.86 | $3,051.32 |
Property Tax in Montgomery
Median Home
$142,000
Annual Tax
$611
Monthly Tax
$51
Effective Rate
0.43%
Sales Tax in Montgomery
Combined Rate
10%
State Portion
~7.5%
Local Portion
~2.5%
The combined sales tax rate in Montgomery 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 | Montgomery | Alabama Avg | National Avg |
|---|---|---|---|
| Income Tax | 5% | 5% | 4.6% |
| Property Tax | 0.43% | ~0.43% | 1.1% |
| Sales Tax | 10% | ~10% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Montgomery 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 Montgomery (0.43%) 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 Montgomery, AL?
Montgomery, Alabama has a state income tax rate up to 5%. The property tax rate is 0.43% and the combined sales tax rate is 10%. State capital; no local income tax
How much is property tax in Montgomery?
The effective property tax rate in Montgomery is 0.43%. On the median home price of $142,000, this equals approximately $611 per year or $51 per month. This is below the national average of 1.1%.
What is the sales tax rate in Montgomery?
The combined sales tax rate in Montgomery is 10%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Montgomery's tax burden compare to other cities?
Montgomery has a low overall tax burden. The effective total tax rate for a median-income household is approximately 24.8%. The combination of 5% state income tax, 0.43% property tax, and 10% sales tax determines the total burden. Cost of living index is 86.7 (100 = national average).
Are there any local taxes in Montgomery?
Montgomery 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). State capital; no local income tax