MONTGOMERY, Ala. (AP) — A new national study shows Alabama levies more income tax on families living in poverty than any other state.
The study released Wednesday by the Center on Budget and Policy Priorities in Washington shows Alabama has the lowest threshold for levying income taxes on a family of three and the next-to-lowest for a family of four.
The study said the level where a single-parent family of three starts paying Alabama's income tax is $9,800, which is the lowest threshold in the country.
A family of three earning at the federal poverty level of $17,165 will pay $333 in Alabama, which is the highest tax rate in the country.
The study said an Alabama family of four earning at the federal poverty line of $22,017 will pay $483, which is the highest tax rate in the country.
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