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Tax year 2026 · state vs state

Alabama vs Oregon Income Tax Comparison (2026)

On a $75,000 salary (single filer, 2026), you pay $2,248 less state income tax a year in Alabama than in Oregon, which is about $187 a month. At $150,000 the gap is $5,314 in favor of Alabama.

Alabama: up to 5%Oregon: up to 9.9%Updated October 10, 2026

Compare Alabama and Oregon for your income

Estimate for education only, not tax advice. 2026 federal and state rules, standard deductions, no local taxes. How we calculate.

State comparison

Comparing 2 states, sorted by lowest overall tax rate.

1Alabama

Lowest

22.5%

Overall effective tax rate

  • Net
  • Federal
  • State
  • FICA
Federal income tax
$7,670
State income tax
$3,485
Payroll tax (FICA)
$5,738
Total tax
$16,893
Net income (annual)
$58,108

2Oregon

25.5%

Overall effective tax rate

  • Net
  • Federal
  • State
  • FICA
Federal income tax
$7,670
State income tax
$5,733
Payroll tax (FICA)
$5,738
Total tax
$19,140
Net income (annual)
$55,860

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💰 Monthly breakdown

Your take-home pay, spread across the year

Alabama

Monthly gross$6,250
Monthly tax$1,408
Monthly take-home$4,842

Oregon

Monthly gross$6,250
Monthly tax$1,595
Monthly take-home$4,655

Estimates use 2026 federal and state rates, the standard deduction for your filing status and no local taxes. Rankings use state income tax only.

Alabama vs Oregon: how the two systems differ

AlabamaOregon
Wage income taxProgressive, 3 bracketsProgressive, 4 brackets
Top rate5%9.9%
Lowest rate2%4.75%
Deductions and credits (single)$3,000 standard deduction, $1,500 personal exemption$2,910 standard deduction, $256 personal credit

State income tax and take-home pay at every salary

The same salary can leave you with different take-home pay depending on the state. This table applies each state’s 2026 rules to a single filer with no pre-tax contributions.

IncomeAL state taxOR state taxDifferenceAL take-homeOR take-home
$30,000$1,235$1,795$560 less in Alabama$25,050$24,490
$40,000$1,735$2,670$935 less in Alabama$32,585$31,650
$50,000$2,235$3,545$1,310 less in Alabama$40,120$38,810
$60,000$2,735$4,420$1,685 less in Alabama$47,655$45,970
$75,000$3,485$5,733$2,248 less in Alabama$58,108$55,860
$100,000$4,735$7,920$3,185 less in Alabama$74,445$71,260
$150,000$7,235$12,549$5,314 less in Alabama$106,556$101,242
$250,000$12,235$22,449$10,214 less in Alabama$170,947$160,733

Single filer, 2026, federal standard deduction. Take-home is after federal, state and payroll tax. No local taxes.

Married filing jointly

IncomeAL state taxOR state taxDifferenceAL take-homeOR take-home
$75,000$3,095$4,903$1,808 less in Alabama$61,528$59,719
$100,000$4,345$7,091$2,746 less in Alabama$80,365$77,619
$150,000$6,845$11,466$4,621 less in Alabama$116,340$111,719
$250,000$11,845$20,216$8,371 less in Alabama$185,623$177,252

Married filing jointly, 2026, federal standard deduction. Uses each state's joint brackets where they differ.

Does the lower-tax state change as income rises?

For a single filer, Oregon is the lower-tax state up to roughly $17,500 of income, and Alabama becomes the lower-tax state above that.

Rates side by side

Alabama (single filers)

2%Up to $500
4%$501 to $3,000
5%Over $3,000

Oregon (single filers)

4.75%Up to $4,550
6.75%$4,551 to $11,400
8.75%$11,401 to $125,000
9.9%Over $125,000

Full details for each state: Alabama income tax calculator and Oregon income tax calculator. Federal rates are on the 2026 federal tax brackets page.

Alabama vs Oregon FAQ

Which has lower income tax, Alabama or Oregon?+

Alabama is lower at $75,000: $3,485 of state income tax versus $5,733 in Oregon. At $150,000 it is $7,235 in Alabama and $12,549 in Oregon. For a single filer, Oregon is the lower-tax state up to roughly $17,500 of income, and Alabama becomes the lower-tax state above that.

How much more do I keep on $100,000 in Alabama versus Oregon?+

A single filer keeping $74,445 a year in Alabama would keep $71,260 in Oregon after federal, state and payroll tax. The difference is $3,185 a year, or $265 a month.

How do the Alabama and Oregon income tax systems differ?+

Alabama uses progressive rates up to 5%; Oregon uses progressive rates up to 9.9%. State deductions and exemptions also differ, which changes how much income is taxed.

Are local taxes included in this Alabama vs Oregon comparison?+

No. It covers federal income tax, Social Security, Medicare and state income tax only. City, county, sales and property taxes are not included, and they can change the real cost of living in each state.

Should I move from Alabama to Oregon to save on taxes?+

State income tax is one cost among many. Property and sales taxes, housing, insurance and wages also differ, and you may owe tax to both states in the year you move. Use this comparison as one input and confirm details with a tax professional.

Sources

Last checked October 10, 2026. Confirm with your state tax agency before filing.

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Estimates for education only, not tax, legal or financial advice. Not a substitute for a tax professional or your state revenue department.