While many states continue raising taxes, Alabama is holding the line.
A new report from the Public Affairs Research Council of Alabama (PARCA) shows Alabama continues to rank near the bottom nationally in state and local tax collections, a result of a tax system that relies heavily on sales taxes while keeping property taxes among the lowest in the country.
According to PARCA’s “How Alabama Taxes Compare, 2025 Edition,” Alabama state and local governments collected $4,930 per capita in taxes during fiscal year 2023, placing the state ahead of only Mississippi and Tennessee…