1Tennessee
Lowest17.9%
Overall effective tax rate
- Net
- Federal
- State
- FICA
- Federal income tax
- $7,670
- State income tax
- $0
- Payroll tax (FICA)
- $5,738
- Total tax
- $13,408
- Net income (annual)
- $61,593
Tax year 2026 · state vs state
Alabama vs Tennessee Income Tax Comparison (2026)
On a $75,000 salary (single filer, 2026), you pay $3,485 less state income tax a year in Tennessee than in Alabama, which is about $290 a month. At $150,000 the gap is $7,235 in favor of Tennessee.
Alabama: up to 5%Tennessee: no state taxUpdated October 10, 2026
Compare Alabama and Tennessee 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.
2Alabama
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
Advanced analysis (optional)
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💰 Monthly breakdown
Your take-home pay, spread across the year
Tennessee
Monthly gross$6,250
Monthly tax$1,117
Monthly take-home$5,133
Alabama
Monthly gross$6,250
Monthly tax$1,408
Monthly take-home$4,842
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 Tennessee: how the two systems differ
| Alabama | Tennessee | |
|---|---|---|
| Wage income tax | Progressive, 3 brackets | No tax on wages |
| Top rate | 5% | 0% |
| Lowest rate | 2% | 0% |
| Deductions and credits (single) | $3,000 standard deduction, $1,500 personal exemption | Not applicable |
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.
| Income | AL state tax | TN state tax | Difference | AL take-home | TN take-home |
|---|---|---|---|---|---|
| $30,000 | $1,235 | $0 | $1,235 less in Tennessee | $25,050 | $26,285 |
| $40,000 | $1,735 | $0 | $1,735 less in Tennessee | $32,585 | $34,320 |
| $50,000 | $2,235 | $0 | $2,235 less in Tennessee | $40,120 | $42,355 |
| $60,000 | $2,735 | $0 | $2,735 less in Tennessee | $47,655 | $50,390 |
| $75,000 | $3,485 | $0 | $3,485 less in Tennessee | $58,108 | $61,593 |
| $100,000 | $4,735 | $0 | $4,735 less in Tennessee | $74,445 | $79,180 |
| $150,000 | $7,235 | $0 | $7,235 less in Tennessee | $106,556 | $113,791 |
| $250,000 | $12,235 | $0 | $12,235 less in Tennessee | $170,947 | $183,182 |
Single filer, 2026, federal standard deduction. Take-home is after federal, state and payroll tax. No local taxes.
Married filing jointly
| Income | AL state tax | TN state tax | Difference | AL take-home | TN take-home |
|---|---|---|---|---|---|
| $75,000 | $3,095 | $0 | $3,095 less in Tennessee | $61,528 | $64,623 |
| $100,000 | $4,345 | $0 | $4,345 less in Tennessee | $80,365 | $84,710 |
| $150,000 | $6,845 | $0 | $6,845 less in Tennessee | $116,340 | $123,185 |
| $250,000 | $11,845 | $0 | $11,845 less in Tennessee | $185,623 | $197,468 |
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?
Across every income from $10,000 to $1,000,000 that we tested, Tennessee charges the same or less state income tax than Alabama for a single filer, so there is no income level where the ranking flips.
Rates side by side
Alabama (single filers)
| 2% | Up to $500 |
| 4% | $501 to $3,000 |
| 5% | Over $3,000 |
Tennessee (single filers)
Tennessee has no state personal income tax. The old “Hall tax” on interest and dividends was repealed after 2020.
- Alabama: Many Alabama cities and counties also levy occupational taxes that are not included here.
Full details for each state: Alabama income tax calculator and Tennessee income tax calculator. Federal rates are on the 2026 federal tax brackets page.
Alabama vs Tennessee FAQ
Which has lower income tax, Alabama or Tennessee?+
Tennessee is lower at $75,000: $0 of state income tax versus $3,485 in Alabama. At $150,000 it is $7,235 in Alabama and $0 in Tennessee. Across every income from $10,000 to $1,000,000 that we tested, Tennessee charges the same or less state income tax than Alabama for a single filer, so there is no income level where the ranking flips.
How much more do I keep on $100,000 in Alabama versus Tennessee?+
A single filer keeping $74,445 a year in Alabama would keep $79,180 in Tennessee after federal, state and payroll tax. The difference is $4,735 a year, or $395 a month.
How do the Alabama and Tennessee income tax systems differ?+
Alabama uses progressive rates up to 5%; Tennessee has no tax on wages. State deductions and exemptions also differ, which changes how much income is taxed.
Are local taxes included in this Alabama vs Tennessee 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 Tennessee 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
- Tax Foundation: 2026 state individual income tax rates and brackets
- IRS: Tax inflation adjustments for tax year 2026
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.