Alabama Take-Home Pay Calculator
5% top rateEstimate your net paycheck after federal taxes, FICA, and Alabama state income tax.
Last updated: April 2026
Alabama Income Tax
Alabama has a graduated income tax with a top rate of 5% for income over $3,000 (single).
Alabama State Income Tax: What You Need to Know
Alabama has a graduated income tax with a top rate of 5% for income over $3,000 (single).
Alabama has one of the shortest income tax bracket tables in the country — just three brackets topping out at 5% above $3,000 of taxable income. Alabama is one of very few states that allows residents to deduct federal income taxes paid from their Alabama taxable income, which meaningfully reduces the effective state tax burden for most earners. Alabama also allows a personal exemption of $1,500 and a standard deduction of $2,500 for single filers earning under $20,500. No Alabama city imposes a local income tax on wages.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies Alabama's 5% top rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
Alabama Income Tax Brackets (2026, Single Filers)
| Income Range | Tax Rate |
|---|---|
| $0 – $500 | 2.00% |
| $500 – $3,000 | 4.00% |
| $3,000 – and above | 5.00% |
Alabama Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $1,960 | $3,060 | $31,813 |
| $60,000 | $6,617 | $2,960 | $4,590 | $45,833 |
| $80,000 | $10,817 | $3,960 | $6,120 | $59,103 |
| $100,000 | $15,617 | $4,960 | $7,650 | $71,773 |
Frequently Asked Questions: Alabama Taxes
Does Alabama allow you to deduct federal income taxes on your state return?
Yes — Alabama is one of very few states that lets you deduct federal income taxes paid when calculating Alabama taxable income. This federal deduction meaningfully reduces your Alabama tax bill, especially at higher income levels. It's a structural advantage unique to Alabama workers that lowers the effective state tax rate below the headline 5%.
What are Alabama's income tax brackets for 2026?
Alabama has three tax brackets for single filers: 2% on income up to $500, 4% on income from $500 to $3,000, and 5% on all income above $3,000. Because the 5% rate kicks in at just $3,000, the vast majority of taxable income for most workers falls in that top bracket.
Does Alabama have a city or local income tax?
No. Alabama cities and counties do not impose a local income tax on wages. Alabama workers pay only state income tax at the state level — there is no additional local withholding. This is unlike states such as Ohio or Michigan where many cities levy their own income taxes on top of state tax.
What is Alabama's standard deduction and personal exemption?
Alabama's standard deduction for single filers is $2,500 for those earning under $20,500, phasing out at higher incomes. Alabama also allows a personal exemption of $1,500 per taxpayer. These are separate from the federal standard deduction and apply specifically to your Alabama state return.
How does Alabama compare to neighboring states on income taxes?
Alabama's 5% top rate is similar to Georgia (5.29% flat) and higher than Tennessee and Florida (both no income tax). Compared to Mississippi (5% flat) it's roughly the same. Alabama's federal tax deduction makes its effective state rate lower than the headline 5% suggests for most middle-income earners.
What is Alabama's minimum wage in 2026?
Alabama has no state minimum wage law and defers entirely to the federal minimum of $7.25/hour. Alabama cities and counties are preempted from setting their own higher local minimums. This makes Alabama one of the lowest minimum wage states in the country in terms of legal floor.