Alabama income tax rate 2026
OfficialAlabama rates, brackets and the tax on common salaries.
- Rate
- 2% to 5%
- Tax on $75,000
- $3,127
- 4.2% effective
- Tax on $100,000
- $4,102
- 4.1% effective
- Rank among taxing states
- #14 of 42
- by tax taken on $75,000, 1 takes the most
What is the Alabama income tax rate in 2026?
Alabama taxes wages at 2% to 5% in 2026. On a $75,000 salary, Alabama income tax is $3,127, an effective rate of 4.17%.
How this is calculated
- The effective rate is the yearly state income tax divided by gross pay, after the state's deductions and exemptions.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
Alabama income tax brackets for 2026
Alabama has 3 brackets for single filers, from 2% to 5%. The 5% top bracket starts at $3,000 of taxable income for a single filer. Alabama tax is owed on top of federal income tax, which follows the federal tax brackets for 2026.
Single
| Taxable income over | Rate |
|---|---|
| $0 | 2% |
| $500 | 4% |
| $3,000 | 5% |
Married filing jointly
| Taxable income over | Rate |
|---|---|
| $0 | 2% |
| $1,000 | 4% |
| $6,000 | 5% |
Head of household
| Taxable income over | Rate |
|---|---|
| $0 | 2% |
| $500 | 4% |
| $3,000 | 5% |
Brackets apply to taxable income after the state's deductions and exemptions, not to gross pay.
How much Alabama income tax do you pay on $100,000?
On $100,000 of wages, Alabama income tax is $4,102 in 2026, an effective rate of 4.1%. The table runs from $30,000 to $300,000. At the low end, see what a full-time job keeps at the minimum wage in Alabama.
How this is calculated
- Each salary is single filer wages with no pre-tax deductions, through the state's rules for the year.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
What is the Alabama standard deduction in 2026?
The Alabama standard deduction is $2,500 for single filers and $5,000 for married couples filing jointly in 2026. Each filer also gets a personal exemption of $1,500.
- Standard deduction, single
- $2,500
- Married filing jointly
- $5,000
- Personal exemption
- $1,500
How did Alabama income tax change in 2026, and what changes in 2027?
Alabama kept its rate at 2% to 5% in 2026. No 2027 schedule has been published yet.
| Tax year | Kind | Lowest rate | Top rate | Standard deduction, single | Status |
|---|---|---|---|---|---|
| 2025 | progressive | 2% | 5% | $2,500 | official |
| 2026 | progressive | 2% | 5% | $2,500 | official |
How does Alabama income tax compare with other states?
On $75,000, Alabama income tax ranks #14 of 42 states that tax wages, where #1 takes the most. The state income tax rates page compares all of them.
How this is calculated
- Each state's income tax on the same $75,000 salary, single filer, under its rules for 2026.
- States without a wage income tax are left out of this rank.
- The reference worker is a single filer with one job, paid every two weeks, with a standard Form W-4 and no pre-tax deductions, under 65.
Do Alabama cities or counties charge income tax?
Some Alabama cities charge an occupational tax on wages earned there; the calculator includes 3 of them: Birmingham, Leeds and Opelika, at 1%. The Alabama paycheck calculator adds the one you pick.
| Locality | Kind | Resident rate | Note |
|---|---|---|---|
| Birmingham | city | 1% | 1% occupational tax on wages for work done in Birmingham |
| Leeds | city | 1% | 1% occupational tax on gross wages for work done in Leeds |
| Opelika | city | 1% | 1% occupational tax on gross wages for work done in Opelika |
How is Alabama income tax withheld from a paycheck?
Employers withhold Alabama income tax from each paycheck, using the Form A-4 each employee fills in. On a $75,000 salary paid every two weeks, that is $120.25 a paycheck.
Employer withholding tables can differ from the yearly tax owed; the return settles the difference.
How this is calculated
- Employers use the Alabama withholding tables or formula, which subtract the standard deduction, the federal tax withheld and the exemptions on Form A-4 before applying 2%, 4% and 5%; the formula has no overtime deduction. Paychecks here assume Form A-4 claims the filing status (S, M or H) and every dependent.
Questions people ask
How much Alabama tax is withheld from a bonus?
Employers can withhold Alabama tax on a bonus at a flat 5%. The return settles the actual tax on it.
Does Alabama tax overtime and tips?
Partly. Alabama has its own, narrower version of the federal deductions for overtime and tips. Alabama did not adopt the federal deductions; it has its own deduction of up to $1,000 of overtime premium pay for 2026 to 2028. Tips stay taxable.
Do 401(k) contributions lower Alabama income tax?
Yes. Traditional 401(k) contributions lower Alabama taxable wages, as they do for federal income tax.