Live in Tennessee, work in Alabama
Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.
State income tax: $4,102 a year
Living in Tennessee and working in Alabama, you'd pay about $4,102 in state income tax on $100,000 of wages, $4,102 more than if you worked in Tennessee.
Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.
State tax at different salaries
| Wages | To AL | To TN | Total | If you worked in TN |
|---|---|---|---|---|
| $50,000 | $2,069 | $0 | $2,069 | $0 |
| $75,000 | $3,127 | $0 | $3,127 | $0 |
| $100,000 | $4,102 | $0 | $4,102 | $0 |
| $150,000 | $6,023 | $0 | $6,023 | $0 |
| $250,000 | $9,695 | $0 | $9,695 | $0 |
Single filer, all wages earned in Alabama, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- File an Alabama nonresident return. There's no Tennessee return for wages because Tennessee has no income tax.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Alabama: Several cities levy occupational taxes on wages earned in the city (e.g., Birmingham 1%, Bessemer, Gadsden, Opelika), applying to nonresident commuters (e.g., from GA/TN/MS).
Frequently asked questions
Do I pay Alabama income tax if I live in Tennessee?
Yes. Alabama taxes wages earned there by nonresidents. On $100,000 that's about $4,102.
Do I have to file taxes in both Tennessee and Alabama?
Usually you file only one state return (a nonresident return in Alabama), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. Tennessee has no income tax, so you pay only Alabama's nonresident tax: about $4,102 on $100,000.
Related
- Live in Alabama, work in Tennessee
- Moving from Tennessee to Alabama
- Moving from Alabama to Tennessee
- Live in Tennessee, work in Arkansas
- Live in Tennessee, work in Georgia
- Live in Tennessee, work in Kentucky
- Live in Tennessee, work in Missouri
- Live in Tennessee, work in Mississippi
- Live in Tennessee, work in North Carolina
- Live in Tennessee, work in Virginia
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.