Alabama taxes at a glance
Alabama has a progressive income tax with rates from 2% to 5%. Birmingham also levies a local income tax.
Every paycheck in Alabama also has federal income tax, Social Security (6.2%) and Medicare (1.45%) withheld. Use the calculator above to see the exact amounts for your salary and deductions.
Notes for Alabama
- Alabama lets you deduct the federal income tax you owe.
- The standard deduction steps down in $500 increments; this estimate uses a straight line.
- Occupational taxes (e.g. Birmingham 1%) are paid where you work, not where you live.
- The overtime deduction (2026–2028) is the overtime premium up to $1,000; a married couple who both earn overtime may be able to claim up to $1,000 each.