Alabama is ranked 8th in the top ten cheapest states to live in. Here is the most inexpensive consumer basket. For example, our family spends only about $800-1000 per month on groceries. However, the sales tax is 10%.
To any price tag, be it a store or a restaurant, a consumer tax will be added to the check. It has a different rate, for example, in Pennsylvania it is 7%, and somewhere it is taken into account in public catering, somewhere it is not. Four states have no sales tax at all.
Our family spends $1,000 a month on groceries.
Income taxes make up a third of the salary — 32% — and are divided into three main ones: federal, Alabama state tax and pension. The highest federal tax rate is 11%. This is a standard expenditure on the armament of the state, the salaries of civil servants, education and medicine.
5% goes to the pension fund, the rest is taxes from the state of Alabama and the county of Mobile, which go to cleaning the streets, garbage collection and other expenses for law and order and the work of municipal services.
Alabama is one of the ten cheapest states to live in.
With accurate and timely tax payments, part can be returned. This is roughly the amount of a month’s salary. That is, you kind of get the 13th salary from the state if you behave like an exemplary taxpayer. The tax rate can be reduced if there are dependents (but only if they are US citizens) or adopted children.