Alabama income tax rates for 2026
Alabama has rates from 2% to 5%; for single filers the top rate of 5% starts above $3,000 of Alabama taxable income. Rates apply to Alabama taxable income: federal adjusted gross income minus Alabama’s own deductions and exemptions.
| 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 |
Alabama standard deduction and exemptions
| Item | Single | Married filing jointly |
|---|---|---|
| Standard deduction | $3,000 | $8,500 |
| Personal exemption | $1,500 | $3,000 |
| Exemption per dependent | $1,000 | $1,000 |
Deductions and exemptions reduce the income Alabama taxes; credits reduce the tax itself. The head-of-household standard deduction is $5,200.
How much Alabama income tax will I pay?
Estimated 2026 tax for a single filer with wage income, the standard deduction and no dependents:
| Wages | Alabama tax | State effective rate | Federal income tax | Total income tax | Combined rate |
|---|---|---|---|---|---|
| $40,000 | $1,629 | 4.07% | $2,620 | $4,249 | 10.6% |
| $60,000 | $2,509 | 4.18% | $5,020 | $7,529 | 12.5% |
| $80,000 | $3,322 | 4.15% | $8,770 | $12,092 | 15.1% |
| $100,000 | $4,102 | 4.1% | $13,170 | $17,272 | 17.3% |
| $150,000 | $6,023 | 4.02% | $24,734 | $30,757 | 20.5% |
| $250,000 | $9,695 | 3.88% | $51,304 | $60,999 | 24.4% |
At $100,000, for example, Alabama takes about $4,102 and the combined income tax bill is $17,272. Your marginal rate on the next dollar at that income is 27% (22% federal + 5% Alabama). These estimates apply Alabama’s brackets, standard deduction, exemptions and credits from our data, plus the phase-outs and other special rules described below; local taxes and rules the notes below mark as not modeled are left out.
How Alabama compares with neighboring states
On a $75,000 salary, a single filer pays $3,127 in Alabama income tax, the 38th-lowest among the 50 states and DC. The median across all of them is $2,588.
| State | State tax on $75,000 | Effective rate | Rates | National rank |
|---|---|---|---|---|
| Florida | $0 | 0% | No wage tax | 1 of 51 |
| Tennessee | $0 | 0% | No wage tax | 1 of 51 |
| Mississippi | $2,268 | 3.02% | Flat 4% | 17 of 51 |
| Georgia | $2,994 | 3.99% | Flat 4.99% | 36 of 51 |
| Alabama | $3,127 | 4.17% | 2%–5% | 38 of 51 |
Compare Alabama with Florida, Georgia, Mississippi and Tennessee.
Alabama tax rules to know
Key points from our 2026 Alabama data, compiled from the official sources listed at the end of this page:
- Rates and brackets are set in statute and are NOT indexed for inflation: 2% / 4% / 5%. Head of family and married filing separately use the single schedule (2% on first $500, 4% on next $2,500, 5% above $3,000); married filing jointly: 2% on first $1,000, 4% on next $5,000, 5% above $6,000.
- Standard deduction amounts shown are MAXIMUMS; they phase down as Alabama income rises (ADOR standard deduction chart, based on Form 40 line 7 income): Single $3,000 up to $25,999, minus $25 per $500 above that, floor $2,500 at $35,500+; Married joint $8,500 up to $25,999, minus $175 per $500, floor $5,000 at $35,500+; Head of family $5,200 up to $25,999, minus $135 per $500, floor $2,500 at $35,500+; Married separate $4,250 up to $12,999, minus $88 per $250, floor $2,500 at $17,750+.
- Personal exemption: $1,500 single or married filing separately; $3,000 married filing jointly or head of family.
- Dependent exemption per dependent depends on AGI: $1,000 if AGI is $0-$50,000; $500 if $50,001-$100,000; $300 if over $100,000.
- Alabama allows a deduction for federal income tax liability (federal income tax plus net investment income tax, minus refundable credits such as EIC/ACTC/AOTC), which lowers Alabama taxable income.
- HB 527 (signed April 2026) creates an Alabama deduction for qualified overtime compensation, up to $1,000, for tax years 2026 through 2028.
- A 2025 bill (HB 389) to raise the standard deduction for 2026 did not pass, so the 2025 standard deduction chart still applies in 2026.
- Alabama does not use the federal standard deduction; Social Security and most defined-benefit pensions are exempt from Alabama income tax.
Local income tax: Some Alabama cities and counties levy an occupational license tax on wages earned there, typically 1%-2% of gross wages (e.g., Birmingham 1%, Bessemer 1%, Gadsden 2%); it applies based on where you work.
More 2026 tax tools
See the 2026 federal brackets and standard deduction, estimate each paycheck with the paycheck calculator, or compare income tax in every state.
Frequently asked questions
What is the Alabama income tax rate for 2026?
Alabama has rates from 2% to 5% for 2026. For single filers the top rate of 5% applies to Alabama taxable income over $3,000. Because the rate applies to taxable income after deductions and exemptions, the share of total income you pay is lower: about 4.17% for a single filer earning $75,000. At $100,000 of wages, a single filer would owe about $4,102 in Alabama income tax.
How much is Alabama income tax on $75,000?
A single filer with $75,000 in wages owes about $3,127 in Alabama income tax for 2026, based on Alabama taxable income of about $63,330. Federal income tax adds $7,670 and Social Security and Medicare $5,738, leaving about $58,466. A married couple earning $150,000 would owe about $6,253 in state tax.
What is the Alabama standard deduction for 2026?
In our 2026 data, the Alabama standard deduction is $3,000 for single filers and $8,500 for married couples filing jointly ($5,200 for heads of household). A personal exemption of $1,500 per filer also reduces taxable income. For a single filer earning $75,000, Alabama taxable income works out to about $63,330 in our estimate. See the rules section on this page for income limits and other details.
Does Alabama have local income taxes?
Some Alabama cities and counties levy an occupational license tax on wages earned there, typically 1%-2% of gross wages (e.g., Birmingham 1%, Bessemer 1%, Gadsden 2%); it applies based on where you work. This calculator does not add local taxes. A single filer earning $75,000 pays about $10,797 in combined federal and Alabama income tax.
How does Alabama income tax compare with nearby states?
On a $75,000 salary, a single filer pays about $3,127 in Alabama income tax, the 38th-lowest among the 50 states and DC. Among neighbors, Florida would take $0 and Georgia $2,994. The national median is $2,588. Income tax is only one part of the picture; sales and property taxes also differ by state.
Is this Alabama tax estimate exact?
It is an estimate. We apply Alabama’s 2026 brackets, standard deduction, exemptions and credits to your income, starting from federal adjusted gross income. We do not model every Alabama subtraction, credit or phase-out, or local income taxes, and federal figures leave out the AMT and the QBI deduction. Use it for planning and check your actual return or Alabama’s tax agency for final numbers.