Alabama has a state income tax, but its structure is different from many larger states. The rate schedule is short, the top state rate is reached at a relatively low level of taxable income, and the state has its own deduction and exemption rules that can make Alabama taxable income different from your federal taxable income.
This page brings the Alabama income tax picture together in one place: the state brackets, the Alabama standard deduction and state-specific adjustments, local income or occupational taxes where applicable, and the combined federal, state, and FICA rate you actually face on your income.
Every table below is generated from current tax data, so the figures stay accurate year to year, and they match the numbers used by our payroll and income tax calculators.
Alabama state income tax brackets
| Tax Rate | Single | Married (Joint) | Married (Separate) | Head of Household |
|---|---|---|---|---|
| 2% | Up to $500 | Up to $1,000 | Up to $500 | Up to $500 |
| 4% | $500 – $3,000 | $1,000 – $6,000 | $500 – $3,000 | $500 – $3,000 |
| 5% | Over $3,000 | Over $6,000 | Over $3,000 | Over $3,000 |
Brackets apply to Alabama taxable income — income after deductions and exemptions, not your gross salary. The U.S. system is progressive: each rate applies only to the income inside its own bracket, never to your whole income.
Alabama uses a progressive income tax system, which means different layers of your taxable income are taxed at different rates. The table above shows the current Alabama brackets for each filing status. Your marginal rate is the rate applied to your next dollar of taxable income, while your effective rate is the average tax rate across all of your taxable income.
Alabama standard deduction, exemptions, and adjustments
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | Up to $3,000 — phases down to $2,500 between AGI $25,500 and $35,500 | $1,500 |
| Married Filing Jointly | Up to $8,500 — phases down to $5,000 between AGI $25,500 and $35,500 | $3,000 |
| Married Filing Separately | Up to $4,250 — phases down to $2,500 between AGI $12,750 and $17,750 | $1,500 |
| Head of Household | Up to $5,200 — phases down to $2,500 between AGI $25,500 and $35,500 | $1,500 |
These amounts are subtracted from income before Alabama's tax rates apply. They are separate from — and in addition to — the federal standard deduction.
- Alabama lets filers deduct the federal income tax they paid from their state taxable income — an unusual rule that lowers the state bill, especially at higher incomes.
Alabama does not simply copy the federal standard deduction. The state has its own standard deduction, its own exemption rules, and state-specific adjustments that affect how much income is exposed to Alabama income tax. One important Alabama-specific feature is the federal income tax deduction, which can reduce Alabama taxable income and is reflected in the tables and calculators on this site.
Alabama local income and occupational taxes
| Locality | Resident Rate | Non-Resident Rate | Applies To |
|---|---|---|---|
| Attalla | 2% | 2% | Earned income (wages) |
| Auburn | 1% | 1% | Earned income (wages) |
| Bessemer | 1% | 1% | Earned income (wages) |
| Birmingham | 1% | 1% | Earned income (wages) |
| Brilliant | 1% | 1% | Earned income (wages) |
| Gadsden | 2% | 2% | Earned income (wages) |
| Glencoe | 2% | 2% | Earned income (wages) |
| Goodwater | 0.75% | 0.75% | Earned income (wages) |
| Guin | 1% | 1% | Earned income (wages) |
| Haleyville | 1% | 1% | Earned income (wages) |
| Leeds | 1% | 1% | Earned income (wages) |
| Lineville | 1% | 1% | Earned income (wages) |
| Midfield | 1% | 1% | Earned income (wages) |
| Mosses | 1% | 1% | Earned income (wages) |
| Opelika | 1.5% | 1.5% | Earned income (wages) |
| Rainbow City | 2% | 2% | Earned income (wages) |
| Red Bay | 0.5% | 0.5% | Earned income (wages) |
| Shorter | 1% | 1% | Earned income (wages) |
| Southside | 2% | 2% | Earned income (wages) |
| Sumiton | 1% | 1% | Earned income (wages) |
| Tuskegee | 2% | 2% | Earned income (wages) |
Local rates apply to wages in addition to federal and state income tax. "Resident" is the rate for people who live in the locality; "non-resident" applies to people who only work there.
Most Alabama residents think first about the statewide income tax, but local payroll-related taxes can also matter in some places. Where Alabama local income or occupational taxes are available in our database, the table above lists the locality, the resident and non-resident treatment, and the type of income the tax applies to. If no local tax applies to you, your Alabama state income tax calculation is driven by the statewide rules shown above.
What you actually pay in Alabama
| Gross Income | Federal | Alabama | FICA | Combined |
|---|---|---|---|---|
| Up to $4,500 | -7.65% | 0% | 7.65% | 0% |
| $4,500 – $5,000 | -7.65% | 2% | 7.65% | 2% |
| $5,000 – $7,500 | -7.65% | 4% | 7.65% | 4% |
| $7,500 – $16,100 | 7.65% | 5% | 7.65% | 20.3% |
| $16,100 – $25,500 | 10% | 4.5% | 7.65% | 22.15% |
| $25,500 – $28,500 | 10% | 4.75% | 7.65% | 22.4% |
| $28,500 – $35,500 | 12% | 4.65% | 7.65% | 24.3% |
| $35,500 – $66,500 | 12% | 4.4% | 7.65% | 24.05% |
| $66,500 – $121,800 | 22% | 3.9% | 7.65% | 33.55% |
| $121,800 – $184,500 | 24% | 3.8% | 7.65% | 35.45% |
| $184,500 – $200,000 | 24% | 3.8% | 1.45% | 29.25% |
| $200,000 – $217,875 | 24% | 3.8% | 2.35% | 30.15% |
| $217,875 – $272,325 | 32% | 3.4% | 2.35% | 37.75% |
| $272,325 – $656,700 | 35% | 3.25% | 2.35% | 40.6% |
| Over $656,700 | 37% | 3.15% | 2.35% | 42.5% |
Marginal rate = the tax on your NEXT dollar of gross income. Because the federal government and Alabama each subtract their own deductions before applying brackets, the ranges here are expressed in gross income — the two bracket tables cannot simply be added together.
FICA is the employee share of Social Security and Medicare. It applies from the first dollar, stops on wages above the Social Security cap, and rises again where the Additional Medicare surtax begins.
Alabama adjusts its deductions with income (deduction phase-out and/or a federal-tax deduction), so rates inside affected ranges shift gradually rather than at a single boundary. Values shown are measured at the middle of each range.
| Gross Income | Federal Tax | Alabama Tax | FICA | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|---|
| $30,000 | $1,420 | $1,175 | $2,295 | $4,890 | $25,110 | 16.3% |
| $50,000 | $3,820 | $2,069 | $3,825 | $9,714 | $40,286 | 19.4% |
| $75,000 | $7,670 | $3,127 | $5,738 | $16,534 | $58,466 | 22% |
| $100,000 | $13,170 | $4,102 | $7,650 | $24,922 | $75,079 | 24.9% |
| $150,000 | $24,734 | $6,023 | $11,475 | $42,232 | $107,768 | 28.2% |
| $200,000 | $36,734 | $7,923 | $14,339 | $58,996 | $141,004 | 29.5% |
| $300,000 | $68,134 | $11,353 | $16,689 | $96,177 | $203,823 | 32.1% |
| $500,000 | $138,134 | $17,853 | $21,389 | $177,377 | $322,623 | 35.5% |
Effective rate = total tax as a share of gross income. It is always lower than your top marginal rate, because only the last slice of income is taxed at the highest bracket.
The combined table shows what an Alabama resident really pays on their next dollar once federal tax, Alabama state tax, and FICA are stacked together. This is often more useful than looking at the state rate alone, because your paycheck is reduced by several layers of tax at the same time.
Social Security and Medicare
| Employee Rate | Wage Limit | |
|---|---|---|
| Social Security | 6.2% | First $184,500 of wages |
| Medicare | 1.45% | All wages (no cap) |
| Additional Medicare | 0.9% | Wages above $200,000 (single / head of household), $250,000 (married filing jointly), $125,000 (married filing separately) |
FICA comes out of every paycheck in every state and is separate from income tax. Employers pay a matching share on top of these employee rates; self-employed workers pay both halves through self-employment tax.
FICA applies the same way in Alabama as it does across the rest of the country. The table lists the current Social Security wage cap, the Medicare rate, and the additional Medicare surtax that higher earners pay.
Work out your Alabama take-home pay
To turn these tables into a practical paycheck estimate, use the payroll calculator and select Alabama as your state. To compare Alabama against another state, use the tax comparison calculator and keep the salary, filing status, and deductions consistent across both scenarios.
Frequently asked questions
Is Alabama income tax flat or progressive?
Alabama has a progressive state income tax, not a flat tax. Different layers of taxable income are taxed at different rates, and the top state bracket is reached at a relatively low level of taxable income.
Does Alabama let you deduct federal income tax?
Yes. Alabama has a federal income tax deduction that can reduce Alabama taxable income. This is one reason Alabama taxable income can differ from federal taxable income, and it is reflected in PaycheckNet’s Alabama tables and calculators.
Does Alabama have local income tax?
Alabama does not have one statewide local income tax system that applies everywhere, but some local jurisdictions may have payroll-related occupational or local income taxes. Check the local tax table on this page and your pay stub to see whether one applies to your location.