Taxes in Decatur
Alabama's near-flat 5% state income tax (softened by its real federal-tax-deduction offset) and Decatur's 9.0% combined sales tax apply here the same as elsewhere in Alabama, layered with a 0.48% effective property tax rate -- the highest of this wave's five markets, though still nationally low.
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Learn moreAlabama'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.
Decatur's 9.0% combined sales tax
Decatur's minimum combined 2026 sales tax rate is 9.0%: 4% state + 1% Morgan County + 4% city.
The highest property tax rate of this wave's five markets, still nationally low
Morgan County's effective property tax rate runs about 0.48% -- higher than Lauderdale (0.38%), Houston (0.33%), Limestone (0.36%), and Autauga (0.30%) counties, but still 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
- Alabama's near-flat 5% income tax is softened by its real, uncapped federal-tax-deduction offset.
- Decatur's combined sales tax is 9.0%.
- Morgan County's ~0.48% effective property tax rate is the highest of this wave's five markets, but still nationally low.
- Alabama levies no state estate or inheritance tax.
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