Alabama vs Tennessee Taxes: Take-Home Pay Compared (2026)
On a $75,000 salary, a single filer keeps $3,177 more a year in Tennessee than in Alabama ($265 a month).
Alabama
2% - 5% state income tax
$58,415
take-home on $75,000 · $4,868/month
36th of 51 states for take-home pay
Alabama paycheck calculator ›Tennessee
No state income tax on wages
$61,592
take-home on $75,000 · $5,133/month
1st of 51 states for take-home pay
Tennessee paycheck calculator ›Take-home pay in Alabama and Tennessee by salary
| Salary | Alabama | Tennessee | Difference |
|---|---|---|---|
| $40,000 | $32,641 | $34,320 | $1,679 more in Tennessee |
| $50,000 | $40,236 | $42,355 | $2,119 more in Tennessee |
| $60,000 | $47,831 | $50,390 | $2,559 more in Tennessee |
| $75,000 | $58,415 | $61,592 | $3,177 more in Tennessee |
| $100,000 | $75,028 | $79,180 | $4,152 more in Tennessee |
| $125,000 | $91,580 | $96,703 | $5,123 more in Tennessee |
| $150,000 | $107,718 | $113,791 | $6,073 more in Tennessee |
| $200,000 | $140,954 | $148,927 | $7,973 more in Tennessee |
Single filer, standard deduction, no local tax. To match $75,000 in Alabama you would need about $70,500 in Tennessee; to match $75,000 in Tennessee you would need about $79,800 in Alabama.
How Alabama and Tennessee tax wages
| 2026 | Alabama | Tennessee |
|---|---|---|
| Income tax | 3 brackets from 2% to 5% | no state income tax |
| Top rate | 5% | 0% |
| Standard deduction | $3,000 single | Not applicable |
| State tax on $75k | $3,177 (4.2%) | $0 (0.0%) |
| Local wage taxes | Yes (5 modeled) | No |
| Reciprocity | None | None |
Alabama vs Tennessee: FAQ
Does Alabama or Tennessee have lower income taxes in 2026?
On a $75,000 salary, a single filer keeps $3,177 more a year in Tennessee than in Alabama ($265 a month). Alabama has 3 brackets from 2% to 5% for 2026. For single filers the top 5% rate starts at $3,000 of taxable income. Tennessee has no state income tax.
What salary in Tennessee equals $75,000 in Alabama?
To take home the same $58,415 that $75,000 leaves in Alabama, you would need about $70,500 in Tennessee, based on income, payroll, and state taxes only. Housing and other living costs are not included.
How much more do high earners keep in Tennessee than in Alabama?
At $150,000 the gap is $6,073 a year: $107,718 in Alabama versus $113,791 in Tennessee. Progressive brackets make the difference grow faster as income rises.
Do local taxes change the Alabama vs Tennessee comparison?
Alabama has local wage taxes in places like Birmingham (1%), Auburn (1%), Gadsden (2%). Those are on top of the statewide figures above, so check the city calculators if you live or work in one of them.