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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.

State government revenue
$45.4 billion
2024
State government spending
$44.4 billion
2024
State government debt outstanding
$11.0 billion
2024
Federal funds to the state government
$16.9 billion
2024
State tax collections
$17.7 billion
2025

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 copy

How 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 copy

How 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 copy

What 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 copy

What 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 copy

How 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 copy

How 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 copy

What 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 copy

Does 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 copy

How 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 copy

How 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

RankRegionState government revenue per person
29Illinois$9,319
30Michigan$9,298
31Utah$9,173
32Alabama$8,789
33Oklahoma$8,690
34South Carolina$8,662
35Wisconsin$8,478
Source: U.S. Census Bureau · saved copy

State government spending per person (2024)

Alabama ranks 34 of 50, highest first. Total expenditure of the state government divided by 1 July population

RankRegionState government spending per person
31South Carolina$8,949
32Ohio$8,683
33Oklahoma$8,607
34Alabama$8,594
35Arkansas$8,482
36Indiana$8,302
37Arizona$8,113
Source: U.S. Census Bureau · saved copy

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

RankRegionState government debt per person
36Texas$2,237
37Kentucky$2,199
38Wyoming$2,140
39Alabama$2,129
40Nebraska$1,692
41Utah$1,585
42Georgia$1,254
Source: U.S. Census Bureau · saved copy

Federal funds received by the state government per person (2024)

Alabama ranks 26 of 50, highest first. Intergovernmental revenue from the federal government

RankRegionFederal funds received by the state government per person
23Minnesota$3,367
24Hawaii$3,360
25Michigan$3,323
26Alabama$3,282
27Maryland$3,263
28Ohio$3,236
29Iowa$3,219
Source: U.S. Census Bureau · saved copy

Federal funds as a share of state general revenue (2024)

Alabama ranks 19 of 50, highest first.

RankRegionFederal funds as a share of state general revenue
16Georgia38.1%
17Maine38.0%
18Arkansas38.0%
19Alabama37.8%
20Oregon36.9%
21Rhode Island36.8%
22Michigan36.3%
Source: U.S. Census Bureau · saved copy

State tax collections per person (2025)

Alabama ranks 40 of 50, highest first.

RankRegionState tax collections per person
37Tennessee$3,496
38Arizona$3,494
39South Carolina$3,455
40Alabama$3,403
41Colorado$3,370
42Ohio$3,264
43Oklahoma$3,164
Source: U.S. Census Bureau · saved copy

Individual income tax as a share of state taxes (2025)

Alabama ranks 25 of 50, highest first.

RankRegionIndividual income tax as a share of state taxes
22South Carolina35.1%
23Idaho34.9%
24Rhode Island33.4%
25Alabama32.8%
26Indiana31.7%
27Pennsylvania31.6%
28Iowa31.4%
Source: U.S. Census Bureau · saved copy

General sales tax as a share of state taxes (2025)

Alabama ranks 31 of 50, highest first.

RankRegionGeneral sales tax as a share of state taxes
28Missouri29.7%
29Pennsylvania28.5%
30New Jersey27.4%
31Alabama27.2%
32Georgia27.2%
33West Virginia27.1%
34Oklahoma26.9%
Source: U.S. Census Bureau · saved copy

State spending on public welfare per person (2024)

Alabama ranks 44 of 50, highest first. Direct general expenditure on public welfare, mainly Medicaid

RankRegionState spending on public welfare per person
41Nevada$2,036
42Utah$1,975
43New Hampshire$1,939
44Alabama$1,886
45Idaho$1,865
46Wyoming$1,858
47Texas$1,831
Source: U.S. Census Bureau · saved copy

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