Alabama vs 
Tennessee
Take-home pay after federal tax, state income tax, and FICA — calculated with the same engine as our paycheck calculator.
By Sammy S. · Founder · AuthorUpdated for 2026
Winner at $100k
Tennessee
Extra take-home / year
$4,735
Per month
$395
Over 10 years
$47,350
Moving from Alabama → Tennessee at $100,000
Metric vs metric
Lower tax and cost figures generally favor the highlighted cell. Rate structure notes sit under each state's calculator link.
| Metric | Alabama | Tennessee |
|---|---|---|
| Income tax | 5% · Progressive (top 5%) | 0% · No state income tax (0%) |
| Combined sales tax | ~9.46% | ~9.61% |
| Effective property tax | ~0.37% | ~0.52% |
| Cost of living index | 85 | 88.9 |
| Median household income | $61,200 | $66,800 |
| Unemployment rate | 3.2% | 3.3% |
Dig into each state's paycheck
Alabama rate structure
Progressive brackets with a top marginal rate of about 5%.
Tennessee rate structure
No state income tax on wages; revenue relies more on sales and property taxes.
Overview
Alabama has progressive (top 5%), while Tennessee has no state income tax. Moving from Alabama to Tennessee saves about $4,735/year in take-home at $100,000 gross (single filer). Sales tax: ~9.46% vs ~9.61%. Property tax: ~0.37% vs ~0.52%. Median household income (ACS 2024): $61,200 vs $66,800.
Take-home by income
Net pay after federal income tax, state income tax, and FICA — single filer, standard deduction, no dependents (2026). Advantage is take-home in Tennessee minus Alabama.
| Gross | Alabama take-home | Tennessee take-home | Advantage |
|---|---|---|---|
| $50,000 | $40,120 | $42,355 | +$2,235 |
| $75,000 | $58,108 | $61,593 | +$3,485 |
| $100,000Headline | $74,445 | $79,180 | +$4,735 |
| $150,000 | $106,556 | $113,791 | +$7,235 |
| $200,000 | $139,192 | $148,927 | +$9,735 |
| $500,000 | $315,742 | $340,477 | +$24,735 |
Assumptions: single filer, standard deduction, no dependents, tax year 2026. At $100k: FICA ≈ $7,650 in both states; effective total tax rate ≈ 25.6% in Alabama vs 20.8% in Tennessee. Local city taxes are not included unless noted.
$100k tax breakdown: Alabama vs Tennessee
Where a $100,000 paycheck goes after federal income tax, state income tax, and FICA (2026, single filer).
| Line item | Alabama | Tennessee |
|---|---|---|
| Gross pay | $100,000 | $100,000 |
| Federal income tax (est.) | $13,170 | $13,170 |
| State income tax | $4,735 | $0 |
| FICA (SS + Medicare) | $7,650 | $7,650 |
| Take-home pay | $74,445 | $79,180 |
| Effective total tax rate | 25.6% | 20.8% |
| Monthly take-home | $6,204 | $6,598 |
Federal estimates can differ slightly between states when state interactions affect taxable income. Combined sales tax ~9.46% (Alabama) vs ~9.61% (Tennessee); effective property tax ~0.37% vs ~0.52%.
Pros & cons: Alabama vs Tennessee
Tax structure, living costs, and lifestyle trade-offs beyond the paycheck number.
Alabama
Pros
- Lower effective property tax (~0.37% vs ~0.52% in Tennessee)
- Lower cost of living index (85 vs 88.9; 100 = US average)
- Modeled with our 2026 federal + state + FICA paycheck engine
Cons
- −State income tax (Progressive (top 5%)) reduces take-home vs a $0-income-tax peer
- −Roughly $4,735/year less take-home at $100k vs Tennessee
- −Lower median household income ($61,200 ACS 2024 vs $66,800)
Tennessee
Pros
- No state income tax on wages — $0 withholding vs Alabama's state tax
- About $4,735/year more take-home at $100k gross (single) vs Alabama
- Higher median household income ($66,800 ACS 2024 vs $61,200)
Cons
- −Higher effective property tax (~0.52% vs ~0.37% in Alabama)
- −Higher cost of living index (88.9 vs 85; 100 = US average)
- −Local city/county taxes and credits are not fully modeled in the headline ladder
Who wins when
Quick read on when each state is the better fit — beyond the headline tax number.
- Tennessee wins on take-home pay at every salary band in our ladder (single filer, standard deduction).
- Alabama: Lower effective property tax (~0.37% vs ~0.52% in Tennessee)
- Alabama: Lower cost of living index (85 vs 88.9; 100 = US average)
- Tennessee: No state income tax on wages — $0 withholding vs Alabama's state tax
- Tennessee: About $4,735/year more take-home at $100k gross (single) vs Alabama
How we calculate Alabama vs Tennessee
Tax engine. Federal income tax uses 2026 IRS brackets and the standard deduction for a single filer. FICA includes Social Security and Medicare employee shares. State income tax applies Alabama's and Tennessee's rules as modeled in our US calculator (Progressive (top 5%) vs No state income tax (0%)).
What's included. Wage income only — no capital gains, self-employment tax, itemized deductions, credits, or local city wage taxes (e.g. NYC) unless noted. Sales tax (~9.46% vs ~9.61%) and property tax (~0.37% vs ~0.52%) are context metrics, not subtracted from the take-home ladder.
Cost of living. COL indexes (85 vs 88.9, 100 = US average) and median household income ($61,200 vs $66,800) help interpret whether a paycheck win buys more in real life. For city-level equivalent salary, use the Alabama → Tennessee relocation calculator.
Frequently asked questions
Common questions about Alabama vs Tennessee taxes, take-home pay, and relocation.
Moving Alabama → Tennessee?
Model cost-of-living equivalent salary, or open each state's paycheck calculator with your filing status and deductions.
Related tools
Estimates only for tax year 2026. Not tax advice — verify with your state tax agency or a CPA before relocating. Figures assume a single filer with the standard deduction and no dependents.