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What is the state income tax rate difference between Alabama and Texas?
Posted on 12/10/13 at 4:39 pm
Posted on 12/10/13 at 4:39 pm
Serious question. Texas has no state income tax. Does Alabama, and if so, what is the rate?
Obvious reason I ask - how much would Saban save in taxes if he lived in Texas versus Alabama?
Obvious reason I ask - how much would Saban save in taxes if he lived in Texas versus Alabama?
6
Posted on 12/10/13 at 4:41 pm to Captain Want
You need to compare property tax, too.
Posted on 12/10/13 at 4:41 pm to Captain Want
Not enough to be a dealbreaker or dealmaker either way.
Posted on 12/10/13 at 4:41 pm to Captain Want
quote:
Obvious reason I ask - how much would Saban save in taxes if he lived in Texas versus Alabama?
he would come out 300k on top
Posted on 12/10/13 at 4:43 pm to Captain Want
texas has no state income tax, but property tax varies between 2-3% depending on county
so that would be ~100-150K on a $5MM home
so that would be ~100-150K on a $5MM home
Posted on 12/10/13 at 4:43 pm to baytiger
Good point. What is the property tax in Alabama too?
Posted on 12/10/13 at 4:52 pm to Captain Want
quote:
how much would Saban save in taxes if he lived in Texas versus Alabama?
After a quick search, it looks like the income tax rate is 2-5%. However, the property taxes in Texas are usually higher. Based on this website ( Tax Estimator), for a $10 million house in Tuscaloosa, he would pay $30-35k. While in Austin, He would pay $250-300k in property taxes. That is a net "loss" in property taxes of $215-$265k. Even if he went over for $5 million, if he saved 5% in state income taxes, he would break even. However, his bump in salary would far exceed that.
This post was edited on 12/10/13 at 4:54 pm
Posted on 12/10/13 at 4:54 pm to Captain Want
It's not going to sway it either way. Austin generally is a slightly more expensive town than Tuscaloosa but not in a massive way (unless he was living right downtown). Reports are he would be in Lakeway where total property taxes are about 3% with no income taxes.
Posted on 12/10/13 at 4:56 pm to baytiger
If you assume he's making $7 Million, he's paying around $350,000 in state income taxes on top of federal taxes.
If he owns a $5,000,000 home at the highest property tax rate (~3%) he'd pay $150,000 in property tax in Texas.
So even if you assume he'd pay no property taxes in Bama, he'd still get $200,000 more a year in Texas.
Say he gets in the $10 Million range, then he'd get $350,000 more per year.
If he owns a $5,000,000 home at the highest property tax rate (~3%) he'd pay $150,000 in property tax in Texas.
So even if you assume he'd pay no property taxes in Bama, he'd still get $200,000 more a year in Texas.
Say he gets in the $10 Million range, then he'd get $350,000 more per year.
This post was edited on 12/10/13 at 4:58 pm
Posted on 12/10/13 at 4:58 pm to Geauxgurt
Uh, property taxes are deductible
Income tax, is not
Income tax, is not
Posted on 12/10/13 at 5:00 pm to League Champs
State income taxes partially offset federal taxes, though.
Posted on 12/10/13 at 5:01 pm to League Champs
quote:
League Champs
You sure about that?
IRS webpage on local taxes
quote:
State and local income taxes withheld from your wages during the year appear on your Form W-2 (PDF). The following amounts are also deductible:
Any estimated taxes you paid to state or local governments during the year, and
Any prior year's state or local income tax you paid during the year.
This post was edited on 12/10/13 at 5:02 pm
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