Side-by-side tax comparison between Alabama (5% top rate, graduated) and Georgia (5.19% top rate, flat). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Alabama uses a graduated income tax (2-5%) while Georgia has a flat system (5.19% flat). On a $100K salary, Alabama takes $3,250 in state and local taxes compared to Georgia’s $5,190 \u2014 a difference of $1,940.
Because Alabama has graduated brackets while Georgia is flat, the gap between them changes at different income levels. Alabama’s rates increase with income, so high earners feel the difference more acutely.
Alabama also has local income taxes (estimated at $0/year on $100K), which Georgia does not. This widens the gap beyond just state rates.
Alabama wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Alabama | Georgia | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,020 | $32,244 | −$776 | Alabama |
| $50K | $40,730 | $39,760 | −$970 | Alabama |
| $60K | $48,440 | $47,276 | −$1,164 | Alabama |
| $75K | $59,100 | $57,645 | −$1,455 | Alabama |
| $100K | $75,875 | $73,935 | −$1,940 | Alabama |
| $120K | $89,295 | $86,967 | −$2,328 | Alabama |
| $150K | $108,876 | $105,966 | −$2,910 | Alabama |
| $200K | $142,387 | $138,507 | −$3,880 | Alabama |
| $250K | $175,139 | $170,289 | −$4,850 | Alabama |
| $300K | $205,579 | $199,759 | −$5,820 | Alabama |
Take-home pay only tells part of the story. Alabama has a cost of living index of 88 while Georgia is at 93 (national average = 100).
With similar costs of living (88 vs 93), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $86,222 in Alabama vs $79,500 in Georgia.
For a single earner at $100K filing jointly, take-home becomes $81,460 in Alabama and $79,520 in Georgia \u2014 a difference of $1,940. The gap remains similar regardless of filing status.
On paper, moving from Georgia to Alabama would save $1,940/year on a $100K salary, or $9,700 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,940/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.