Alabama is one of the few states that lets you subtract the federal income tax withheld from your pay before figuring state tax. Rates are low and graduated (2%, 4% and 5%), but the 5% rate starts early, and several cities, led by Birmingham, take a separate occupational tax straight off gross pay.
2026 tax year, verified Sources
Estimated take-home this week
$920.79
from $1,153.85 gross. You keep 80%.
No local tax included. Some Alabama cities and counties tax wages; pick yours under “Where you work.”
2026 tax year, rules last verified November 12, 2026. An estimate, not tax advice. How we calculate
Each extra dollar you earn loses about 24¢ to taxes, but across all your pay the average is 20¢. A raise never lowers your take-home: only the dollars above a bracket line pay the higher rate.
| Annual pay | Effective | Marginal |
|---|---|---|
| $15,000 | 10.9% | 12.7% |
| $30,000 | 16.3% | 24.3% |
| $45,000 | 18.9% | 24.1% |
| $60,000 | 20.2% | 24.1% |
| $75,000 | 22.0% | 33.6% |
| $90,000 | 24.0% | 33.6% |
| $105,000 | 25.3% | 33.6% |
| $120,000 | 26.4% | 33.6% |
| $135,000 | 27.3% | 35.4% |
| $150,000 | 28.2% | 35.4% |
Same pay, W-4 and benefits; each state’s default withholding answers, no local taxes. Take-home per week:
Alabama uses an annualized formula. Your employer multiplies this paycheck by the number of paychecks in the year, then subtracts four things: a standard deduction, the federal income tax withheld from your pay (annualized), a personal exemption and an amount for each dependent.
The standard deduction phases down between about $26,000 and $35,500 of annual pay. A single filer gets $3,000 at the low end and $2,500 at the top; married filers get $8,500 down to $5,000. Each dependent is worth $1,000 up to $50,000 of pay, $500 up to $100,000 and $300 above that.
What’s left is taxed at 2% on the first $500, 4% on the next $2,500, 5% above $3,000 (married: 2% on the first $1,000, 4% on the next $5,000, 5% above $6,000), and the annual total is divided back into paychecks.
Because federal withholding is subtracted, a new federal W-4 that raises or lowers your federal withholding moves your Alabama withholding slightly the other way.
| Item | Single (S), 0, MS, H | Married (M) |
|---|---|---|
| 2% bracket | $0 – $500 | $0 – $1,000 |
| 4% bracket | $500 – $3,000 | $1,000 – $6,000 |
| 5% bracket | over $3,000 | over $6,000 |
| Standard deduction (low income → $35,500+) | S/0: $3,000 → $2,500; MS: $4,250 → $2,500; H: $5,200 → $2,500 | $8,500 → $5,000 |
| Personal exemption | S/MS: $1,500; H: $3,000; 0: none | $3,000 |
| Each dependent | $1,000 up to $50,000; $500 up to $100,000; $300 above | same |
| Supplemental (bonus) rate | 5% flat | 5% flat |
Married filing separately phases from $4,250 down to $2,500 between $13,000 and $17,750 of annual pay.
Single filer, standard W-4, no benefits, paid weekly, default A4 answers. Alabama takes $41.48 of this check (4.1% of gross).
| Line | Per week | Per year |
|---|---|---|
| Gross pay | $1,000.00 | $52,000.00 |
| Federal income tax | −$78.08 | −$4,060.16 |
| Social Security | −$62.00 | −$3,224.00 |
| Medicare | −$14.50 | −$754.00 |
| Alabama income tax | −$41.48 | −$2,156.96 |
| Take-home pay | $803.94 | $41,804.88 |
Single filer, standard W-4, no benefits, no local tax. Per-week amounts; annual totals account for the Social Security wage cap.
| Salary | Gross / week | Federal | FICA | Alabama | Take-home / week | Per year |
|---|---|---|---|---|---|---|
| $30,000 | $576.92 | $27.31 | $44.14 | $22.60 | $482.87 | $25,109 |
| $40,000 | $769.23 | $50.38 | $58.84 | $31.33 | $628.68 | $32,691 |
| $50,000 | $961.54 | $73.46 | $73.56 | $39.79 | $774.73 | $40,286 |
| $60,000 | $1,153.85 | $96.54 | $88.27 | $48.25 | $920.79 | $47,881 |
| $75,000 | $1,442.31 | $147.50 | $110.33 | $60.13 | $1,124.35 | $58,466 |
| $100,000 | $1,923.08 | $253.27 | $147.11 | $78.88 | $1,443.82 | $75,079 |
| $150,000 | $2,884.62 | $475.65 | $220.68 | $115.83 | $2,072.46 | $107,768 |
Married filing jointly with two children on $100,000: $1,630.44 a week ($84,783 a year).
Many Alabama cities levy an occupational (license) tax on wages earned there, whether or not you live there. It is a flat percentage of gross pay, before 401(k) or health deductions. Pick your work city in the calculator. Others, such as Attalla, Fairfield, Leeds, Midfield and Rainbow City, are reported to levy similar taxes but aren’t modeled yet; your pay stub shows if one applies.
None. Alabama has no state disability, paid family leave or employee unemployment deduction. State unemployment tax is paid by employers.
Alabama law lets you deduct federal income tax on your state return, so the withholding formula subtracts your annualized federal withholding to match. It’s one reason Alabama withholding is usually lower than the 5% top rate suggests.
In the Department of Revenue’s own example (married, two dependents, $35.19 federal withholding a week), Alabama withholds $29.59 a week. Your amount depends on your federal withholding, so use the calculator.
Yes, if you work in Birmingham. The 1% tax is based on where you work, not where you live. On a $1,000.00 weekly paycheck that’s $10.00. If you live in Birmingham but work elsewhere, you don’t owe it.
No. Occupational taxes apply to gross wages before any deductions, so 401(k) contributions and health premiums don’t reduce them. They do reduce your Alabama income tax.
Employers may withhold a flat 5% of a bonus for Alabama. City occupational tax also applies to the bonus if you work in a taxing city.
Alabama rules for the 2026 tax year, last verified November 12, 2026. Federal sources are on the methodology page.
Every state page has its own withholding formula, local taxes, payroll programs and worked examples. Compare all states.