Taxes in Birmingham, AL
Updated 2026 • Property, income & sales tax data
📊 Total Annual Tax Burden in Birmingham, AL
The combined effect of property, income, and sales taxes determines your total tax burden. Based on Birmingham's median household income of $42,464 and a local median home price of $0.
🏠 Property Tax in Birmingham, AL
Property taxes are collected by local governments and used to fund schools, infrastructure, and other local services.
Note: The effective rate represents the percentage of a property's value paid in taxes annually. The US average property tax rate is approximately 1.1%.
💼 State Income Tax in AL
Income tax rates and brackets vary by state, impacting residents' overall tax burden. The top bracket applies to income above $$500-$3000.
Note: Tax estimates are approximations based on standard deductions and may not account for all applicable credits, deductions, or individual circumstances. For personalized tax advice, please consult a qualified tax professional.
🛒 Sales Tax in Birmingham, AL
Sales tax is applied to most retail purchases and is collected by merchants at the point of sale. The rate can vary based on location and type of purchase.
Impact on Common Household Expenses
| Category | Annual Spending | Est. Sales Tax |
|---|---|---|
| Groceries | $7,000 | $840 |
| Retail | $5,000 | $600 |
| Dining | $3,500 | $420 |
| Total Annual | $15,500 | $1,860 |
💡 Did you know? Not all states tax groceries, and some have tax holidays for specific items like back-to-school supplies or emergency preparedness equipment. Check with local authorities for exemptions that might apply to you.
Understanding Your Tax Burden in Birmingham, AL
Taxes impact your cost of living in Birmingham, AL. With moderate property taxes , variable income taxes, and sales tax at 4.00%, understanding your tax burden is crucial. Explore detailed breakdowns below.
Tax Pros & Cons of Birmingham, AL
Pros
- •Friendly community vibes
- •Rich historical significance
- •Access to outdoor activities
- •Good music and arts scene
- •Diverse dining choices
- •Growing job market
- •Affordable housing options
- •Family-friendly events available
- •Strong college presence
- •Emerging tech industry
Cons
- •High crime rates reported
- •Traffic congestion issues
- •Limited nightlife options
- •Healthcare access challenges
- •Limited public transportation
- •Perception of racism exists
- •Weather can be oppressive
- •Public schools need improvement
- •Some areas are not walkable
- •Economic inequality present
Frequently Asked Questions
What is the cost of living in Birmingham, AL? ▼
The cost of living in Birmingham, AL is 0% equal to the national average, with a cost of living index of 100 (where 100 represents the U.S. average). Housing typically accounts for the largest portion of living expenses. See full cost of living breakdown →
Is Birmingham, AL a safe place to live? ▼
Birmingham, AL is average in terms of safety, with crime rates near the national average. Safety varies significantly by neighborhood. View detailed Birmingham crime statistics →
What are the best neighborhoods in Birmingham, AL? ▼
The best neighborhoods in Birmingham, AL depend on your priorities. For families, look for areas near top-rated schools with lower crime rates. For affordability, neighborhoods vary in price depending on proximity to amenities and schools.
How are the taxes in Birmingham, AL? ▼
Tax rates in Birmingham, AL include state and local components. The cost of living index of 100 reflects a moderate cost environment compared to the national average. View detailed Birmingham tax information →
How does Birmingham, AL compare to nearby cities? ▼
Birmingham, AL offers comparable costs to nearby communities. With a cost of living index of 100, median home prices of $0, and a crime rate of 0 per 1,000 residents, you can compare these metrics side-by-side. Use the compare feature to evaluate specific cities.
What is the weather like in Birmingham, AL? ▼
Weather in Birmingham, AL varies by season. Climate data varies by season. View detailed Birmingham climate & environment data →
Explore More About Birmingham, AL
📅 Last Updated: February 2026
Sources: Tax Foundation, State Revenue Departments, U.S. Census Bureau ACS