Editing Alabama (section)

=== Taxes ===
Taxes are collected by the Alabama Department of Revenue.<ref>{{Cite web |url=https://revenue.alabama.gov/ |title=Alabama Department of Revenue |publisher=Alabama Department of Revenue |access-date=January 3, 2020 |archive-date=January 3, 2020 |archive-url=https://web.archive.org/web/20200103043604/https://revenue.alabama.gov/ |url-status=live}}</ref> Alabama levies a 2%, 4%, or{{spaces}}5% [[State income tax|personal income tax]], depending on the amount earned and filing status.<ref>{{Cite web |url=https://taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/ |title=State Individual Income Tax Rates and Brackets for 2021 |first=Katherine |last=Loughead |publisher=[[Tax Foundation]] |date=February 17, 2021 |access-date=January 19, 2022 |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118042724/https://taxfoundation.org/publications/state-individual-income-tax-rates-and-brackets/ |url-status=live}}</ref> Taxpayers are allowed to deduct their [[Income tax in the United States|federal income tax]] from their Alabama state tax, even if taking the [[standard deduction]]; those who itemize can also deduct [[Federal Insurance Contributions Act tax|FICA]] (the Social Security and Medicare tax).<ref>{{Cite news |url=https://www.thebalance.com/deducting-federal-income-taxes-on-your-state-return-3193248 |title=States That Allow You to Deduct Federal Income Taxes |first=TONYA |last=MORENO |work=[[Dotdash]] |date=May 27, 2021 |access-date=January 19, 2022 |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119055340/https://www.thebalance.com/deducting-federal-income-taxes-on-your-state-return-3193248 |url-status=live}}</ref>

The state's general sales tax rate is 4%.<ref>{{cite web |url=https://revenue.alabama.gov/sales-use/taxes-administered/sales-tax/ |title=Sales Tax |publisher=Alabama Department of Revenue |access-date=January 19, 2022 |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119015045/https://revenue.alabama.gov/sales-use/taxes-administered/sales-tax/ |url-status=live}}</ref> Sales tax rates for cities and counties are also added to purchases.<ref>{{Cite web |url=https://revenue.alabama.gov/sales-use/tax-rates/city-and-county-tax-rates/ |title=City and County Tax Rates |publisher=Alabama Department of Revenue |access-date=January 19, 2022 |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119055340/https://revenue.alabama.gov/sales-use/tax-rates/city-and-county-tax-rates/ |url-status=live}}</ref> For example, the total sales tax rate in [[Mobile County, Alabama]] is 10% and there is an additional restaurant tax of 1%, which means a diner in [[Mobile County, Alabama]] would pay an 11% tax on a meal.

In 2020, sales and excise taxes in Alabama accounted for 38% of all state and local revenue.<ref>{{Cite news |url=https://rss.alabamanewscenter.com/2021/01/08/alabama-collected-record-12-2b-revenues-in-2020/ |title=Alabama collected record $12.2B revenues in 2020 |first=Chuck |last=Chandler |work=Alabama News Center |date=January 8, 2021 |access-date=January 19, 2022 |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119055339/https://rss.alabamanewscenter.com/2021/01/08/alabama-collected-record-12-2b-revenues-in-2020/ |url-status=live}}</ref> Only Alabama, [[Mississippi]], and [[South Dakota]] tax groceries at the full state sales tax rate.<ref>{{Cite web |url=https://www.cbpp.org/research/state-budget-and-tax/states-that-still-impose-sales-taxes-on-groceries-should-consider |title=States That Still Impose Sales Taxes on Groceries Should Consider Reducing or Eliminating Them |first1=Eric |last1= Figueroa |first2=Julian |last2=Legendre |publisher= [[Center on Budget and Policy Priorities]] |date=April 1, 2020 |access-date=January 19, 2022 |archive-date=January 31, 2021 |archive-url=https://web.archive.org/web/20210131124324/https://www.cbpp.org/research/state-budget-and-tax/states-that-still-impose-sales-taxes-on-groceries-should-consider |url-status=live}} {{update inline|date=May 2024}}</ref>

The corporate income tax rate in Alabama is 6.5%. The overall federal, state, and local tax burden in Alabama ranks the state as the second least tax-burdened state in the country.<ref>{{cite web |url=https://taxfoundation.org/state/alabama/ |title=Taxes In Alabama |publisher=[[Tax Foundation]] |access-date=January 19, 2022 |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119055341/https://taxfoundation.org/state/alabama/ |url-status=live}}</ref> [[Property tax]]es of .40% of assessed value per year, are the second-lowest in the U.S., after Hawaii.<ref>{{Cite news |url=https://www.forbes.com/sites/brendarichardson/2020/04/09/residents-pay-the-lowest-property-taxes-in-these-states/ |title=Residents Pay The Lowest Property Taxes In These States |first=Brenda |last=Richardson |work=[[Forbes]] |date=April 9, 2020 |url-access=limited |access-date=January 19, 2022 |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119055340/https://www.forbes.com/sites/brendarichardson/2020/04/09/residents-pay-the-lowest-property-taxes-in-these-states/ |url-status=live}}</ref> The state constitution currently requires a voter referendum to raise property taxes.

Historically, an Alabama excise tax "on the storage, use or other consumption in this state of tangible personal property purchased at retail for storage, use or other consumption in this state" was the focus of a 1941 [[Supreme Court of the United States|U S Supreme Court]] ruling, ''Curry v United States''.<ref>{{ussc|314|14|1941}}</ref>