Alabama income tax in 2026
Alabama has a graduated income tax with rates from 2% to 5% for single filers, spread across 3 brackets. Traditional 401(k) contributions lower your Alabama taxable income as well as your federal taxable income. Alabama then subtracts its own standard deduction of $3,000 for single filers ($8,500 married filing jointly). Personal exemptions: $1,500 single, $3,000 married filing jointly, $1,000 per dependent.
| Taxable income (single) | Rate |
|---|---|
| $0 – $500 | 2% |
| $500 – $3,000 | 4% |
| Over $3,000 | 5% |
| Taxable income (married filing jointly) | Rate |
|---|---|
| $0 – $1,000 | 2% |
| $1,000 – $6,000 | 4% |
| Over $6,000 | 5% |
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. These are not included in the calculator.
Alabama rules and notes
- 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.
Alabama take-home pay by salary
Single filer, paid every two weeks, 2026 rules, standard deduction and no pre-tax deductions; includes Alabama income tax but not local taxes.
| Salary | Federal income tax | Social Security + Medicare | Alabama income tax | Take-home per year | Per bi-weekly paycheck |
|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,629 | $32,691 | $1,257.35 |
| $50,000 | $3,820 | $3,825 | $2,069 | $40,286 | $1,549.46 |
| $60,000 | $5,020 | $4,590 | $2,509 | $47,881 | $1,841.58 |
| $75,000 | $7,670 | $5,738 | $3,127 | $58,466 | $2,248.69 |
| $100,000 | $13,170 | $7,650 | $4,102 | $75,079 | $2,887.63 |
| $150,000 | $24,734 | $11,475 | $6,023 | $107,768 | $4,144.91 |
Hourly wages after taxes in Alabama
Full-time (40 hours a week, 2,080 hours a year), no overtime, single filer:
| Hourly wage | Annual pay | Weekly take-home | Bi-weekly take-home | Take-home per year | Take-home per hour |
|---|---|---|---|---|---|
| $15.00 | $31,200 | $500.36 | $1,000.72 | $26,019 | $12.51 |
| $20.00 | $41,600 | $652.04 | $1,304.08 | $33,906 | $16.30 |
| $25.00 | $52,000 | $803.94 | $1,607.88 | $41,805 | $20.10 |
| $30.00 | $62,400 | $955.84 | $1,911.68 | $49,704 | $23.90 |
Alabama vs. neighboring states
Take-home pay on a $75,000 salary (single, bi-weekly), with the difference from Alabama. Federal taxes are identical in every state, so the gaps come from state income tax. On a $75,000 salary, Alabama ranks #38 of 51 (50 states and DC) for take-home pay. Nationally, take-home pay on $75,000 ranges from $56,538 in Oregon to $61,593 in states without a wage tax; the median is $59,005.
| State | State income tax | Take-home per year | Per bi-weekly paycheck | vs. Alabama |
|---|---|---|---|---|
| Alabama | $3,127 | $58,466 | $2,248.69 | — |
| Florida | None | $61,593 | $2,368.94 | +$3,127 |
| Tennessee | None | $61,593 | $2,368.94 | +$3,127 |
| Mississippi | $2,268 | $59,325 | $2,281.71 | +$859 |
| Georgia | $2,994 | $58,599 | $2,253.79 | +$133 |
Neighboring state calculators: Florida, Tennessee, Mississippi, Georgia. See all 50 states and DC on the national paycheck calculator.
How your Alabama paycheck is calculated
- Gross pay for the year is your salary, or your hourly wage × hours × 52 plus overtime at 1.5×.
- Pre-tax deductions such as a traditional 401(k), health premiums and HSA contributions are subtracted before federal income tax.
- Federal income tax uses the 2026 brackets, your filing status’s standard deduction ($16,100 single) and credits for children and other dependents.
- Social Security and Medicare take 6.2% (up to $184,500 of wages) and 1.45%.
- Alabama income tax is figured on the annual amount using the rules above, then divided across your paychecks.
We divide the annual totals by your number of paychecks, which is how a correctly completed 2026 Form W-4 is designed to withhold. Your employer’s withholding tables may differ by a few dollars per check. For your full-year tax bill, use the income tax calculator.
Frequently asked questions
How much is $75,000 a year after taxes in Alabama?
A single filer earning $75,000 in Alabama takes home about $58,466 a year in 2026, or $2,248.69 per bi-weekly paycheck. That is after $7,670 of federal income tax, $5,738 of Social Security and Medicare and $3,127 of Alabama income tax. Pre-tax 401(k) or health deductions would lower your taxes but also your take-home pay.
Does Alabama have a state income tax?
Yes. Alabama has a graduated income tax with rates from 2% to 5% for single filers in 2026. On a $75,000 salary, that works out to about $3,127 a year, or $120.25 per bi-weekly paycheck, an effective state rate of 4.17% of gross pay. Employers withhold it from each paycheck along with federal taxes.
How much is $20 an hour after taxes in Alabama?
Full time (40 hours a week), $20 an hour is $41,600 a year. After 2026 federal income tax, Social Security and Medicare and Alabama income tax, a single filer in Alabama takes home about $33,906 a year, or $1,304.08 per bi-weekly paycheck, about $16.30 per hour worked.
Are there local income taxes in Alabama?
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 doesn’t include local taxes, so subtract them from the estimate if they apply where you live or work.
How does take-home pay in Alabama compare with nearby states?
On a $75,000 salary (single, bi-weekly), take-home pay is $58,466 a year in Alabama. In neighboring states it ranges from $58,599 to $61,593; Florida (the highest nearby) is $3,127 higher. Federal taxes are the same everywhere, so the gap comes entirely from state income tax.
How much federal tax comes out of each paycheck on a $75,000 salary?
Federal taxes don’t depend on the state. For a single filer paid every two weeks on $75,000, about $295.00 of federal income tax, $178.85 of Social Security (6.2%) and $41.83 of Medicare (1.45%) come out of each 2026 paycheck, based on the $16,100 standard deduction. Children, pre-tax deductions and W-4 choices change the federal amount.