Taxes in Athens

Alabama's near-flat 5% state income tax (softened by its real federal-tax-deduction offset) and Athens's 9.0% combined sales tax apply here the same as elsewhere in Alabama, layered with a moderate 0.36% effective property tax rate in Limestone County.

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Alabama's graduated income tax, restated as place-level context

Alabama taxes income at 2% up to $500 (single) / $1,000 (MFJ), 4% on the next bracket, and 5% above $3,000 (single) / $6,000 (MFJ) -- effectively near-flat 5% for most earners, softened by Alabama's real, uncapped federal-tax-deduction offset.

Athens's 9.0% combined sales tax

Athens's minimum combined 2026 sales tax rate is 9.0%: 4% state + 2% Limestone County + 3% city.

A moderate property tax rate

Limestone County's effective property tax rate runs about 0.36% -- moderate among this wave's five Alabama markets (between Autauga's 0.30% and Morgan's 0.48%), and well under the roughly 1.0% national median.

No state estate or inheritance tax

Alabama levies no state estate tax or inheritance tax, consistent with the rest of this project's Alabama coverage.

Key takeaways

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Last reviewed: 2026-08-24. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.