IRS data shows Alabama gained 21,000 taxpayers, $7.4B in income in 2020

According to recently-released Internal Revenue Service (IRS) data, the state of Alabama gained 21,532 taxpayers in 2020, which trails many of its neighboring states. 

Those taxpayers added more than $7.4 billion in adjusted gross income to the Yellowhammer State.

The biggest destinations for Alabamians leaving the state were Georgia (14,323 new taxpayers), Florida (13,280), Tennessee (7,759), and Texas (7,265).

The IRS data is based on tax returns filed in 2020 and 2021 that showed those who moved between 2019 and 2020. Non-filers are not represented in the data.

The data showed that suburban populations are growing at the expense of Alabama’s largest cities, except for Huntsville. Madison County added 3,381 new residents.

The county that added the most taxpayers was Shelby County, with 6,617 new residents, followed by Baldwin County, which added 6,061.

Most of those who moved south on Interstate 65 to Shelby County were from neighboring Birmingham (Jefferson County), which lost a state-worst 4,892 taxpayers.

Mobile also lost 1,195 taxpayers, most of those to Baldwin County across Mobile Bay. Montgomery County also had 1,018 taxpayers move out, mostly to suburban Elmore County.

Florida enjoyed the biggest gains, with 257,487 taxpayers moving to the Sunshine State, followed by Texas, North Carolina, South Carolina, and Tennessee.

Republished with the permission of The Center Square.

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