Side-by-side tax comparison between Alabama (5% top rate, graduated) and Wyoming (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Wyoming has no state income tax, while Alabama uses a graduated system with rates of 2-5%. On a $100K salary, this creates a state tax difference of $3,250/year that Wyoming residents simply don’t pay.
Alabama’s graduated brackets mean the gap between these two states widens at higher salaries. At $200K, the state tax difference grows to $6,500/year, while at $50K it’s only $1,625.
Wyoming wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Alabama | Wyoming | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,020 | $34,320 | +$1,300 | Wyoming |
| $50K | $40,730 | $42,355 | +$1,625 | Wyoming |
| $60K | $48,440 | $50,390 | +$1,950 | Wyoming |
| $75K | $59,100 | $61,538 | +$2,438 | Wyoming |
| $100K | $75,875 | $79,125 | +$3,250 | Wyoming |
| $120K | $89,295 | $93,195 | +$3,900 | Wyoming |
| $150K | $108,876 | $113,751 | +$4,875 | Wyoming |
| $200K | $142,387 | $148,887 | +$6,500 | Wyoming |
| $250K | $175,139 | $183,264 | +$8,125 | Wyoming |
| $300K | $205,579 | $215,329 | +$9,750 | Wyoming |
Take-home pay only tells part of the story. Alabama has a cost of living index of 88 while Wyoming is at 94 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $86,222 in Alabama vs $84,176 in Wyoming. However, Alabama actually provides better purchasing power despite Wyoming’s take-home advantage.
For a single earner at $100K filing jointly, take-home becomes $81,460 in Alabama and $84,710 in Wyoming \u2014 a difference of $3,250. The gap remains similar regardless of filing status.
On paper, moving from Alabama to Wyoming would save $3,250/year on a $100K salary, or $16,250 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $3,250/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.