According to a national survey, Alabama residents pay fewer taxes.
The Tax Foundation discovered Alabama citizens pay about $3,100 between state, city, and county governments a year. Despite the seemingly high number, Alabama is still considered have one of the lowest amounts, per capita, which lies around $36,000. Loosely translated...Alabamians pay around 8.6% of taxes, per capita income.
Among Alabama's neighboring states, the foundation calculated area tax burdens at the following: 7.4%-Florida, 9.9%-Georgia, 8.9%-Mississippi, and 8.3%-Tennessee.
Jim Bryce, a law professor for the University of Alabama who specializes in state and local taxes said, Alabama's relatively low tax burden is not surprising because the lowest ratios are in states with relatively low per capita income. Nationwide, average taxes paid per resident is around $4,200, which reflects 9.7% of taxes, per an average income of $44,000.
Alabama was ranked 38th in the nation for the tax burdens on its citizens.