AL → FL Tax Savings

How Much Would You Save: Alabama vs Florida Taxes

Alabama taxes income up to 5%. Florida charges 0%. Compare the two side by side and see your potential savings.

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Alabama vs Florida: Tax Comparison

See how Alabama's tax structure compares to Florida across every major tax category.

Tax Category	Alabama	Florida
State Income Tax	Up to 5%	0%
Capital Gains Tax	Yes	No
State Estate Tax	No	No
Homestead Property-Tax Relief	Check state eligibility	Available to qualifying homeowners

Your Potential Tax Savings

Estimated annual state income tax savings when moving from Alabama to Florida, computed from Alabama's income tax brackets for a single filer.

Annual Income

$100,000

You Could Save

$4,760/yr

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Annual Income

$150,000

You Could Save

$7,260/yr

≈ $72,600 over a decade

Annual Income

$250,000

You Could Save

$12,260/yr

Annual Income

$500,000

You Could Save

$24,760/yr

Florida residents pay 0% state income tax. The figures above run each income through Alabama's 2026 individual income tax brackets for a single filer, after the state's standard deduction and before credits (California figures use the latest published 2025-indexed brackets). They cover state income tax only; local income taxes, filing status, and state-specific deductions can change your number. For a personalized projection, book a free consultation.Rate source: Tax Foundation 2026 State Individual Income Tax Rates and Brackets, with statutory 2026 overrides where post-publication legislation applies (Georgia HB 463, Kentucky HB 1, Ohio HB 96, Maryland BRFA 2025, North Carolina continuing decline, plus phasedowns in MS, NE, ID, MT, SC, IN, OK, UT per state DOR).

Key Tax Facts: Alabama

What you need to know about Alabama's tax environment before making your move.

Alabama's top marginal individual income tax rate in this 2026 wage-income comparison is 5%. Deductions, taxable-income thresholds and credits affect the amount actually paid.

Alabama is one of the few states that allows a deduction for federal income taxes paid.

Local governments in Alabama can impose additional income taxes, adding to the total burden.

Alabama taxes capital gains as ordinary income at the same 5% top rate.

What this Alabama comparison includes

The comparison models a full year of wage income for a single filer in Alabama. A top marginal rate is not the rate paid on every dollar. A move during the year, continuing Alabama-source income, credits and local taxes can change the result.

Tax data used: 2026 schedule. Tax Foundation 2026 State Individual Income Tax Rates and Brackets
Single-filer standard deduction in the model: $2,500 before any modeled income-based reduction. Personal exemptions and credits are separate; this figure is not a filing threshold.

Establishing Florida domicile does not automatically end another state's statutory residency or source-income rules. Keep a dated move record, a travel calendar and records of income connected with your former state. A mailing address or declaration alone does not determine tax residency.

Check current guidance from Alabama Department of Revenue. Check why tax may remain due after moving.

Alabama: account for the federal-tax deduction

Alabama permits a deduction for qualifying federal income taxes paid. This wage model does not calculate that deduction, so its Alabama estimate can overstate the actual state bill. Obtain the federal return and payment information before turning a displayed saving into a relocation budget. Local income taxes and move-year allocation are also outside the estimate.

Records to bring to your preparer

Federal income-tax liability and payment records
Alabama return adjustments and local withholding
Dates and sources of income before and after departure

Alabama individual income-tax guidance

Source checked September 17, 2026. Select instructions for the year you file; this is a planning question, not a filing determination.

Alabama vs Florida: Side by Side

Explore the practical steps involved in moving from Alabama to Florida.

Alabama charges 5% income tax; Florida charges 0%.

Alabama taxes capital gains at up to 5%; Florida has no capital gains tax.

Alabama has local income taxes in some cities; Florida has no local income taxes anywhere.

Neither Alabama nor Florida has a state estate tax, but Florida offers stronger asset protection laws.

Plan the departure from Alabama

Use the state migration guide to connect the calculation with residence, payroll and filing decisions. For Florida documents, follow the evidence checklist. A document package does not itself end Alabama tax obligations.

Frequently Asked Questions

How much will I save by moving from Alabama to Florida?

Alabama has a top income tax rate of 5%. Florida has 0% income tax. A single filer earning $150,000 could save approximately $7,260 per year, and one earning $250,000 approximately $12,260 per year (2026 rate schedules, after Alabama's standard deduction, state income tax only, before credits). Actual savings depend on your filing status and total income.

Alabama: account for the federal-tax deduction

Will I still owe Alabama taxes after I move to Florida?

You may owe Alabama tax for the resident portion of the year and on Alabama-source income after leaving, such as rent from property there. Also check any statutory-residency and remote-work sourcing rules. Florida domicile alone does not settle these separate questions.