Side-by-side tax comparison between Alabama (5% top rate) and Texas (no income tax).
| Salary | Alabama | Texas | Difference | Winner |
|---|---|---|---|---|
| $50K | $39,673 | $42,298 | +$2,625 | Texas |
| $75K | $57,365 | $61,303 | +$3,938 | Texas |
| $100K | $73,640 | $78,890 | +$5,250 | Texas |
| $150K | $105,571 | $113,446 | +$7,875 | Texas |
| $200K | $138,603 | $149,103 | +$10,500 | Texas |
Texas offers higher take-home pay at every salary level. With no state income tax, Texas gives you a significant advantage over Alabama's 5% top rate. At $100K, the difference is $5,250/year — that’s $438/month.
However, cost of living matters. Alabama has a cost index of 88 while Texas is at 93. With similar costs of living, the tax difference is the main factor.