State Income Tax Range The lowest rate is 2.2% (on up to $1,000 of tax-deductible earnings for joint filers married to each other, and as high as $500 for all others). High: 5% (on more than $6,000 in taxable income for married joint filers and more than $3,000 for all others). Alabama municipalities shoppingallabout shopping all about Website shopping all about com may also impose occupational tax on salaries and wages.

  Sales Tax: 4% state levy. The Tax Foundation reports that localities may add up to 7.5 percent for a total rate of 9.22 percent.