Huntsville Hopeful (Birmingham, Decatur, Woodland: houses, safe neighborhood, allergies)

[ionlife]

that should offset the sales tax==
haha

[HsvMike]

There's always a silver lining.

[ionlife]

Yup

[Southlander]

Originally Posted by cglover

felt like 10 when we calculated our bill but you are right== still high compared to VA. what is the income tax here? c

I believe Birmingham is the only city in Alabama that has a city income tax. My son is NOT happy with that...he lives and works there. I think even people who work there and live in a 'burb pay it.

[cobolt]

Okay so....no city income tax but there is a state income tax. Sales tax 8% and this includes groceries, prescription drugs, utilities, right? I got this off a "taxes by state" site but I don't know how current it is. Do you find the taxes are a big deal? I ask this because I don't pay state income tax or taxes on groceries etc. Our sales tax is about 8.75%, but then again, our property taxes, housing costs, etc are more. Now, this doesn't affect me because I rent, but I want to relocate because I can't buy here. I'm just wondering if the cheaper housing but more taxes of AL make the financial situation a wash or not.

Let me ask you this: does the lower cost of living affect the salary ranges that much? Should I expect a pay cut/reduction and if so, what is the average?

[djmaxwell]

Prescription drugs are not taxed. I don't believe there is sales tax on utilities, but I don't have my bill in front of me to be sure.

DJM

[ionlife]

What is the state income tax?

[cobolt]

Originally Posted by cglover

What is the state income tax?

I got ths from one of those "tax by states" websites. It's actually a retirement site---but, ya know---I'm a big researcher, so whatever works!

ALABAMA
Sales Taxes
State Sales Tax: 4% (prescription drugs exempt); The rate can go as high as 12.0% depending on city and county taxes. The state administers over 200 different city and county sales taxes; however, it does not administer all county or city sales taxes. View municipal sales taxes
Gasoline Tax: 20.2 cents/gallon
Diesel Fuel Tax: 21.2 cents/gallon
(Local option taxes on fuel may add up to 3 cents.)
Cigarette Tax: 42.5 cents/pack of 20

Personal Income Taxes
Tax Rate Range: Low - 2.0%; High - 5.0%
Income Brackets: *Lowest - $500; Highest - $3,000
Number of Brackets: 3
Personal Exemptions: Single - $1,500; Married - $3,000; Dependents - $300
Standard Deduction: Single - $2,000; Married filing joint return - $4,000
Medical/Dental Deduction: Limited to excess of 4% of adjusted gross income
Federal Income Tax Deduction: Full
Retirement Income Taxes: Social Security, military, civil service, state/local government and qualified private pensions are exempt. All out-of-state government pensions are tax-exempt if they are defined benefit plans.
Retired Military Pay: Pay and survivor benefits not taxed.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Property Taxes
The state does not collect taxes on personal property such as boats and computers. Its ad valorem (property tax) is 6.5 mills (advalorem). Each city and county may levy has its own millage rate. For information on all ad valorem tax exemptions, click here. Homeowners 65 and older are exempt from all county property taxes. Some cities also assess separate property taxes. A homestead exemption up to $5,000 of assessed value is granted by the state on real property taxes. A larger exemption is available to persons over 65. Visit state's property tax division web site.

Inheritance and Estate Taxes
There is no inheritance tax and the estate tax is limited to federal estate tax collection.

For further information, visit the Alabama Department of Revenue site or call 334-242-1170.
* For joint returns, the taxes are twice the tax imposed on half the income.

[HsvMike]

Here is Alabama's income tax rates from .... Individual Income Tax Frequently Asked Questions

• What are Alabama's individual income tax rates?
• For single persons, heads of families, and married persons filing separate returns:
  2% First $500 of taxable income
  4% Next $2,500 of taxable income
  5% All taxable income over $3,000
• For married persons filing a joint return:
• 2% First $1,000 of taxable income
• 4% Next $5,000 of taxable income
• 5% All taxable income over $6,000

[ionlife]

thanks