Government budget and revenue in Alabama, United States: official figures
Alabama's state government took in $45.4 billion in fiscal year 2024, $8,789 per resident, 19th lowest of 50 states per person (all states: $9,318 per person). The total includes taxes, federal funds, charges and pension-fund investment income.
How much does the Alabama state government spend?
The Alabama state government spent $44.4 billion in fiscal year 2024, or $8,594 per resident, 17th lowest of 50 states (all states: $9,444). Spending was 33.5% higher than in fiscal year 2019 ($33.2 billion), before adjusting for inflation.
Source: U.S. Census Bureau · saved copyHow much debt does the Alabama state government have?
Alabama state government debt outstanding was $11.0 billion at the end of fiscal year 2024, $2,129 per resident, 12th lowest of 50 states (all states: $3,248). That equals 25% of one year's general revenue; in fiscal year 2019 the debt was $10.1 billion.
Source: U.S. Census Bureau · saved copyHow much federal funding does Alabama get?
The federal government provided $16.9 billion to the Alabama state government in fiscal year 2024, $3,282 per resident and 37.8% of its general revenue, 19th highest share of 50 states (all states: 34.2%).
Source: U.S. Census Bureau · saved copyWhat are federal funds to Alabama spent on?
Public welfare programmes, mainly Medicaid, accounted for $10.3 billion or 61% of Alabama's federal funds in fiscal year 2024, and education for $3.8 billion (22%).
Source: U.S. Census Bureau · saved copyWhat does the Alabama state government spend its money on?
Direct state spending on public welfare was $1,886 per resident in fiscal year 2024, 7th lowest of 50 states (all states: $3,000); higher education took $1,607 per resident and highways $382.
Source: U.S. Census Bureau · saved copyHow much does Alabama give to local governments and schools?
28.8% of Alabama's state general spending in fiscal year 2024 ($12.6 billion) was paid to other governments, mostly local governments and school districts, 10th highest share of 50 states (all states: 27.7%).
Source: U.S. Census Bureau · saved copyHow much tax does Alabama collect?
Alabama collected $17.7 billion in state taxes in fiscal year 2025, $3,403 per resident, 11th lowest of 50 states (all states: $4,503). That was 4.8% more than in fiscal year 2024 ($16.9 billion); across all states collections rose 4.3%.
Source: U.S. Census Bureau · saved copyWhat taxes does Alabama rely on?
The individual income tax raised $5.8 billion (32.8% of state taxes, 25th highest share of 50 states) in fiscal year 2025. The general sales tax raised $4.8 billion (27.2%, 20th lowest share of 50 states). The largest single tax was the individual income tax (32.8%), followed by the general sales and gross receipts tax (27.2%).
Source: U.S. Census Bureau · saved copyDoes Alabama have corporate, property or severance taxes?
In fiscal year 2025, in Alabama, corporate net income tax raised $2.1 billion (12.0% of state taxes); state property tax raised $653.7 million; severance tax on oil, gas, coal and minerals raised $36.1 million (0.2% of state taxes).
Source: U.S. Census Bureau · saved copyHow much money does the Alabama state government hold in reserves?
The Alabama state government held $51.1 billion in cash and securities at the end of fiscal year 2024, $9,896 per resident, of which $48.9 billion was in insurance trust funds such as public employee pension systems.
Source: U.S. Census Bureau · saved copyHow Alabama compares with other states
State government revenue per person (2024)
Alabama ranks 32 of 50, highest first. All revenue of the state government, including insurance trust income, divided by 1 July population
| Rank | Region | State government revenue per person |
|---|---|---|
| 29 | Illinois | $9,319 |
| 30 | Michigan | $9,298 |
| 31 | Utah | $9,173 |
| 32 | Alabama | $8,789 |
| 33 | Oklahoma | $8,690 |
| 34 | South Carolina | $8,662 |
| 35 | Wisconsin | $8,478 |
State government spending per person (2024)
Alabama ranks 34 of 50, highest first. Total expenditure of the state government divided by 1 July population
| Rank | Region | State government spending per person |
|---|---|---|
| 31 | South Carolina | $8,949 |
| 32 | Ohio | $8,683 |
| 33 | Oklahoma | $8,607 |
| 34 | Alabama | $8,594 |
| 35 | Arkansas | $8,482 |
| 36 | Indiana | $8,302 |
| 37 | Arizona | $8,113 |
State government debt per person (2024)
Alabama ranks 39 of 50, highest first. Debt outstanding at the end of the fiscal year divided by 1 July population
| Rank | Region | State government debt per person |
|---|---|---|
| 36 | Texas | $2,237 |
| 37 | Kentucky | $2,199 |
| 38 | Wyoming | $2,140 |
| 39 | Alabama | $2,129 |
| 40 | Nebraska | $1,692 |
| 41 | Utah | $1,585 |
| 42 | Georgia | $1,254 |
Federal funds received by the state government per person (2024)
Alabama ranks 26 of 50, highest first. Intergovernmental revenue from the federal government
| Rank | Region | Federal funds received by the state government per person |
|---|---|---|
| 23 | Minnesota | $3,367 |
| 24 | Hawaii | $3,360 |
| 25 | Michigan | $3,323 |
| 26 | Alabama | $3,282 |
| 27 | Maryland | $3,263 |
| 28 | Ohio | $3,236 |
| 29 | Iowa | $3,219 |
Federal funds as a share of state general revenue (2024)
Alabama ranks 19 of 50, highest first.
| Rank | Region | Federal funds as a share of state general revenue |
|---|---|---|
| 16 | Georgia | 38.1% |
| 17 | Maine | 38.0% |
| 18 | Arkansas | 38.0% |
| 19 | Alabama | 37.8% |
| 20 | Oregon | 36.9% |
| 21 | Rhode Island | 36.8% |
| 22 | Michigan | 36.3% |
State tax collections per person (2025)
Alabama ranks 40 of 50, highest first.
| Rank | Region | State tax collections per person |
|---|---|---|
| 37 | Tennessee | $3,496 |
| 38 | Arizona | $3,494 |
| 39 | South Carolina | $3,455 |
| 40 | Alabama | $3,403 |
| 41 | Colorado | $3,370 |
| 42 | Ohio | $3,264 |
| 43 | Oklahoma | $3,164 |
Individual income tax as a share of state taxes (2025)
Alabama ranks 25 of 50, highest first.
| Rank | Region | Individual income tax as a share of state taxes |
|---|---|---|
| 22 | South Carolina | 35.1% |
| 23 | Idaho | 34.9% |
| 24 | Rhode Island | 33.4% |
| 25 | Alabama | 32.8% |
| 26 | Indiana | 31.7% |
| 27 | Pennsylvania | 31.6% |
| 28 | Iowa | 31.4% |
General sales tax as a share of state taxes (2025)
Alabama ranks 31 of 50, highest first.
| Rank | Region | General sales tax as a share of state taxes |
|---|---|---|
| 28 | Missouri | 29.7% |
| 29 | Pennsylvania | 28.5% |
| 30 | New Jersey | 27.4% |
| 31 | Alabama | 27.2% |
| 32 | Georgia | 27.2% |
| 33 | West Virginia | 27.1% |
| 34 | Oklahoma | 26.9% |
State spending on public welfare per person (2024)
Alabama ranks 44 of 50, highest first. Direct general expenditure on public welfare, mainly Medicaid
| Rank | Region | State spending on public welfare per person |
|---|---|---|
| 41 | Nevada | $2,036 |
| 42 | Utah | $1,975 |
| 43 | New Hampshire | $1,939 |
| 44 | Alabama | $1,886 |
| 45 | Idaho | $1,865 |
| 46 | Wyoming | $1,858 |
| 47 | Texas | $1,831 |
More on Alabama: overview · economy and jobs · health · education and schools · poverty and living standards · the United States
Sources
- U.S. Census Bureau: Annual Survey of State Government Finances: State Government Finances, U.S. and States, 2012-2024 (table GS00STATEFIN01, amounts in thousands of dollars), read 23 October 2026 · saved copy (SHA-256 72ff59b48414…)
- U.S. Census Bureau: Annual Survey of State Government Tax Collections: historical database, fiscal years to 2025 (thousands of dollars), read 23 October 2026 · saved copy (SHA-256 bdf560cd3d8f…)
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