Taxes in Tuscaloosa, Alabama
Complete tax guide for Tuscaloosa, AL. State income tax up to 5%, 0.4% property tax, 9% sales tax. Calculate your total tax burden.
State Income Tax
5%
Alabama
Property Tax
0.4%
Effective rate
Sales Tax
9%
Combined rate
Tax Burden
Very Low
Tuscaloosa, AL Tax Overview
University town; no local income tax
Population
101,113
Median Income
$42,033
Cost of Living
90.1 (100 = avg)
State Income Tax
5%
Median Home Price
$195,000
Tuscaloosa Tax Calculator
Pre-filled with Tuscaloosa median: $42,033
Total Tax Burden in Tuscaloosa
$8,323
Take-Home: $33,710 · Effective Rate: 19.80%
Federal Tax
$3,005
7.15% eff.
AL State
$2,102
5.00% eff.
FICA
$3,216
7.65% eff.
Take-Home
$33,710
80.20% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $42,033.00 | $3,502.75 |
| Federal Income Tax | -$3,005.46 | -$250.46 |
| Alabama State Tax | -$2,101.65 | -$175.14 |
| Social Security (6.2%) | -$2,606.05 | -$217.17 |
| Medicare (1.45%) | -$609.48 | -$50.79 |
| Take-Home Pay | $33,710.37 | $2,809.20 |
Property Tax in Tuscaloosa
Median Home
$195,000
Annual Tax
$780
Monthly Tax
$65
Effective Rate
0.4%
Sales Tax in Tuscaloosa
Combined Rate
9%
State Portion
~6.5%
Local Portion
~2.5%
The combined sales tax rate in Tuscaloosa 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 | Tuscaloosa | Alabama Avg | National Avg |
|---|---|---|---|
| Income Tax | 5% | 5% | 4.6% |
| Property Tax | 0.4% | ~0.4% | 1.1% |
| Sales Tax | 9% | ~9% | 7.12% |
| Overall Burden | Very Low | — | Moderate |
Tax Saving Tips for Tuscaloosa 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 Tuscaloosa (0.4%) 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 Tuscaloosa, AL?
Tuscaloosa, Alabama has a state income tax rate up to 5%. The property tax rate is 0.4% and the combined sales tax rate is 9%. University town; no local income tax
How much is property tax in Tuscaloosa?
The effective property tax rate in Tuscaloosa is 0.4%. On the median home price of $195,000, this equals approximately $780 per year or $65 per month. This is below the national average of 1.1%.
What is the sales tax rate in Tuscaloosa?
The combined sales tax rate in Tuscaloosa is 9%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Tuscaloosa's tax burden compare to other cities?
Tuscaloosa has a very low overall tax burden. The effective total tax rate for a median-income household is approximately 23%. The combination of 5% state income tax, 0.4% property tax, and 9% sales tax determines the total burden. Cost of living index is 90.1 (100 = national average).
Are there any local taxes in Tuscaloosa?
Tuscaloosa 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). University town; no local income tax