Alabama Income Tax Calculator 2026

Alabama income tax at a glance

Alabama is one of the few states that lets you deduct the federal income tax you paid, which lowers the effective rate. The standard deduction shrinks as income rises, and the dependent exemption falls from $1,000 to $500 above $50,000 of AGI and to $300 above $100,000.

How Alabama calculates your income tax

Alabama starts from your federal adjusted gross income (AGI). The standard deduction is $3,000 for single filers and $8,500 for married couples filing jointly ($5,200 head of household). It phases down between $25,499 and $35,499 of income for single filers. You also get a personal exemption of $1,500 ($3,000 joint) and a dependent exemption of $1,000 (reduced at higher incomes) per dependent.

• Unusually, Alabama lets you deduct the federal income tax you paid, which lowers taxable income substantially — on $75,000 that deduction is worth $7,670.

Alabama income tax brackets (2026)

Married couples filing jointly get their own, wider brackets. Rates apply only to the slice of taxable income inside each bracket.

Single filers

Married filing jointly

Alabama standard deduction and exemptions

Amounts before any income-based phase-outs.

Alabama income tax on $50,000, $75,000 and $100,000

Estimated 2026 tax for W-2 wages with the standard deduction, no children and no pre-tax deductions. Change any of these in the calculator above.

Step by step: $75,000 single filer in Alabama

• Gross wages: $75,000
• Standard deduction: −$2,500
• Exemptions: −$1,500
• Federal income tax deduction: −$7,670
• Alabama taxable income: $63,330
• 2% on $500 = $10.00
• 4% on $2,500 = $100.00
• 5% on $60,330 = $3,016.50
• Alabama income tax: $3,127 — 4.17% of gross pay, with a marginal state rate of 5%.
• With $7,670 of federal income tax and $5,738 of FICA, total tax is $16,534 and take-home pay is about $58,466 ($2,249 every two weeks).

Local income taxes in Alabama

About two dozen cities and counties levy occupational license taxes on wages earned there — for example Birmingham (1%), Bessemer (1%) and Gadsden (2%).

To include a local tax, type its rate in the “Other local / city income tax rate” box in the calculator. At a 1% local rate, $75,000 of wages would add about $750 a year.

Sales tax and other Alabama taxes

The Alabama state sales tax rate is 4%, and local governments may add their own rates on top. Spending $30,000 a year on taxable goods would cost roughly $1,200 in state sales tax alone.

Compare Alabama with neighboring states

State income tax on $75,000 of wages for a single filer in Alabama and its neighbors. Moving to Florida would cut state income tax on this salary by about $3,127 a year.

If you live in one of these states and work in another, you generally file a non-resident return in the work state and claim a credit at home for the tax paid.

How to lower your Alabama income tax

• Pre-tax retirement savings. Putting $10,000 into a traditional 401(k) on a $75,000 salary cuts Alabama tax by about $398 on top of the federal savings.
• Claim state credits. Check the Alabama return for earned-income, child, education and renter or property-tax credits that this estimate doesn’t include.
• Watch residency and work location. Days worked in another state and the date you move in or out change how much each state can tax.
• Time large income. Bonuses, stock sales and Roth conversions all land on your state return too.

See all states side by side in the state income tax calculator, or check the federal side with the federal income tax calculator and your per-check withholding in the paycheck calculator.

Sources and updates

Rates, brackets and deductions are for tax year 2026. Source: official Alabama tax agency page, cross-checked with the Tax Foundation’s 2026 state income tax tables and 2026 state legislation. Data last reviewed November 4, 2026.