How Alabama taxes your paycheck in 2026
Alabama taxes income at 2% to 5%, but it's one of the few states that lets you deduct the federal income tax you pay, which lowers your state bill.
- The 5% top rate starts at just $3,000 of taxable income ($6,000 for couples), so most workers pay 5% on most of their income.
- Alabama lets you subtract the federal income tax you pay before figuring state tax — a valuable break most states don't offer.
- The standard deduction is $3,000 for single filers ($8,500 for couples) and shrinks as income rises, down to $2,500 ($5,000). Each person also gets a $1,500 exemption.
- Birmingham and a few other cities charge an occupational tax on wages. Add it under More options if it applies to you.
Alabama 2026 income tax brackets
| Rate | Single | Married filing jointly |
|---|---|---|
| 2% | $0 – $500 | $0 – $1,000 |
| 4% | $500 – $3,000 | $1,000 – $6,000 |
| 5% | Over $3,000 | Over $6,000 |
Brackets apply to taxable income, after the state standard deduction.
Take-home pay in Alabama at common salaries
| Salary | Take-home per year | Every 2 weeks | Alabama taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $32,691 | $1,257 | $1,629 | 18.3% |
| $60,000 | $47,881 | $1,842 | $2,509 | 20.2% |
| $75,000 | $58,466 | $2,249 | $3,126 | 22.0% |
| $100,000 | $75,078 | $2,888 | $4,102 | 24.9% |
| $150,000 | $107,768 | $4,145 | $6,023 | 28.2% |
Single filer, paid every two weeks, no 401(k) or pre-tax benefits, excluding local taxes.
Example
A single filer in Alabama earning $75,000 a year, paid every two weeks with no 401(k), takes home about $2,249 per paycheck, or $58,466 a year. Federal income tax is about $7,670, Social Security and Medicare $5,738, and Alabama taxes $3,126.
Not in Alabama?
Use our main paycheck calculator for any state, or browse paycheck calculators by state.
This calculator estimates your yearly tax and spreads it evenly across paychecks. Your employer's withholding depends on your W-4 and state forms, so individual paychecks can differ slightly. It doesn't include tax credits such as the Child Tax Credit.
Common questions
What is Alabama's income tax rate?
2% on the first $500 of taxable income, 4% up to $3,000 and 5% above that (double those thresholds for married couples).
Can I deduct federal taxes on my Alabama return?
Yes. Alabama allows a deduction for federal income tax paid, which reduces your Alabama taxable income.
Does Birmingham have a city income tax?
Birmingham charges a 1% occupational tax on wages earned in the city.
How much is $75,000 a year after taxes in Alabama?
About $58,466 a year, or $2,249 every two weeks, for a single filer with no 401(k) contributions, before any local income tax.
More calculators
- Paycheck calculatorTake-home pay after taxes and 401(k)
- Alaska paycheckNo state income tax
- Delaware paycheck0% to 6.6% + paid leave
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Last updated .