Episode Details

Alabamas local sales tax rate tops the nation at nearly five and a half percent, according to a recent Tax Foundation report. This combined rate from counties and cities puts it ahead of every other state, with Louisiana close behind at five and a half percent. Some cities even reach double digits when state tax is added. Sales taxes disproportionately affect lower-income individuals, making them a contentious issue. Greenville leads Alabama cities with a five and a half percent local rate, while Mobile, Huntsville, and Birmingham follow at five, four and a half, and four percent respectively. Tuscaloosa County charges the highest at six percent. Despite this, Alabama remains a low-tax state with some of the nations lowest income taxes and collections per person.

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