How Alabama taxes your paycheck
Alabama has progressive income tax rates from 2% to 5% for tax year 2026, in 3 brackets. Before the rate applies, the calculator subtracts a standard deduction of $3,000 for single filers, $8,500 for married couples filing jointly and $5,200 for heads of household and a personal exemption of $1,500 per filer ($3,000 for a married couple). The standard deduction shrinks to a smaller minimum as income rises: over $26,000–$35,500 for single filers, $26,000–$35,500 for married couples and $26,000–$35,500 for heads of household. The calculator applies this using your taxable wages as the income figure.
Traditional 401(k) contributions are excluded from Alabama taxable wages, and Section 125 health premiums are excluded.
Figures are from Alabama DOR Withholding Tax Tables and Instructions for Employers and Withholding Agents (Revised January 2026) (tax year 2026).
Take-home pay examples in Alabama
A single filer earning $60,000 in Alabama, paid every two weeks, takes home about $1,841.58 per paycheck, or $47,881 a year. Of the $60,000, $5,020 goes to federal income tax, $4,590 to Social Security and Medicare, and $2,509 to Alabama income tax.
At $100,000, take-home pay is about $75,079 a year ($2,887.63 per paycheck), with $4,102 of Alabama income tax. A married couple filing jointly on one $100,000 salary keeps about $80,572, because of the larger standard deduction and wider brackets. The table below shows more salaries.
Other Alabama payroll deductions
Alabama has no state-mandated employee payroll contribution, such as disability or paid family leave insurance, included in this calculator. Your paycheck may still show voluntary or employer-specific deductions.
Local income taxes in Alabama
Some Alabama municipalities impose occupational taxes on wages. Local taxes are not included in the calculator, so subtract them separately if they apply to you.
Hourly pay in Alabama
A full-time worker earning $20 an hour (40 hours a week, $41,600 a year) in Alabama takes home about $1,304.08 every two weeks, or $652.04 a week on average, as a single filer. Alabama income tax takes $1,699 of that pay a year, an effective state rate of 4.085%. Choose Hourly wage in the calculator to enter your own rate and hours.
Alabama compared with neighboring states
On a $75,000 salary (single, no pre-tax deductions), take-home pay in Alabama is about $58,466 a year. It is higher in Florida, Tennessee, Mississippi and Georgia. The comparison table below shows the difference in dollars. Where you live usually decides which state taxes your wages, but people who live in one state and work in another should check both states' rules on residency and credits.
What else to know about Alabama taxes
Rates are 2%, 4% and 5%. Single filers and heads of household reach the 5% rate above $3,000 of taxable income; married couples filing jointly above $6,000.
Alabama lets you deduct the federal income tax you pay from Alabama income. The calculator subtracts the estimated federal income tax from this page before working out Alabama tax.
Dependent exemptions are not included. Employers may withhold a flat 5% on bonuses and other supplemental pay.
Many Alabama cities, including Birmingham, charge an occupational tax on wages earned there.
What this estimate does not include
Tax credits, itemized deductions, other income, overtime, bonuses, local income taxes and post-tax deductions are not included, and actual withholding follows your Form W-4 and Alabama's own withholding rules. Use it as a planning estimate. For the method and the federal rules, see the main paycheck calculator.