ALABAMA INCOME TAX · TAX YEAR 2026
2026 Alabama income tax calculator
Estimate Alabama income tax with the federal income tax deduction, sliding standard deduction and exemptions, plus federal income tax and take-home pay for tax year 2026.
Your estimate
Alabama take-home pay by salary
Take-home pay is wages minus Alabama tax, federal income tax, Social Security and Medicare. Paychecks split the annual estimate evenly; your actual withholding depends on your W-4 and pay schedule.
| Salary | State tax | Take-home pay | Every two weeks |
|---|---|---|---|
| $50,000 | $2,069 | $40,286 | $1,549 |
| $75,000 | $3,127 | $58,466 | $2,249 |
| $100,000 | $4,102 | $75,079 | $2,888 |
| $150,000 | $6,023 | $107,768 | $4,145 |
| $200,000 | $7,923 | $141,004 | $5,423 |
Alabama tax brackets for 2026
Alabama taxes the first $500 of taxable income at 2%, the next $2,500 at 4% and the rest at 5%; joint filers' brackets are twice as wide. Alabama's rates, deductions and exemptions are set in statute and not indexed for inflation, so the 2026 amounts match 2025.
| Rate | Taxable income |
|---|---|
| 2% | Up to $500 |
| 4% | Over $500 through $3,000 |
| 5% | Over $3,000 |
| Rate | Taxable income |
|---|---|
| 2% | Up to $1,000 |
| 4% | Over $1,000 through $6,000 |
| 5% | Over $6,000 |
| Filing status | Standard deduction | Exemption |
|---|---|---|
| Single | $3,000 | $1,500 |
| Married filing jointly | $8,500 | $3,000 |
| Head of household | $5,200 | $3,000 |
| Married filing separately | $4,250 | $1,500 |
| Each dependent | — | $1,000 |
Alabama income tax questions
Does Alabama have a state income tax?
Yes. Alabama taxes income at graduated rates from 2% to 5% for 2026. Alabama also lets you deduct the federal income tax you pay, and some cities and counties add occupational taxes on wages.
How much is Alabama income tax on $100,000?
A single filer with $100,000 in wages and no other income, 401(k) contributions or dependents owes about $4,101.50 in Alabama income tax for 2026, 4.10% of wages. After federal income tax, Social Security and Medicare, take-home pay is about $75,078.50, or $2,887.63 every two weeks.
What is the Alabama standard deduction for 2026?
For 2026, the Alabama standard deduction is $3,000 for single filers, $8,500 for married couples filing jointly, $5,200 for heads of household, and $4,250 for married couples filing separately. Personal exemptions are $1,500 for single filers and married couples filing separately, and $3,000 for married couples filing jointly and heads of household, plus $1,000 for each dependent. These are maximums. The standard deduction shrinks once Alabama AGI passes $25,999 ($12,999 if married filing separately) and reaches its minimum of $2,500, or $5,000 for joint filers, at $35,500 ($17,750 if married filing separately). The dependent exemption is $1,000 when AGI is $50,000 or less, $500 up to $100,000 and $300 above that. Alabama also deducts the federal income tax you paid, with no cap.
Does Alabama tax Social Security?
No. Alabama does not tax Social Security benefits.
Alabama Social Security tax rules
Does Alabama tax retirement income?
Partly. Alabama exempts defined-benefit pensions, including government and military pensions, and from 65 excludes the first $6,000 per person of 401(k) and IRA withdrawals.
Alabama retirement income tax for 2026
How does Alabama tax capital gains?
As ordinary income at Alabama's rates of 2% to 5%. Alabama has no separate capital gains rate. Long-term gains get lower federal rates than this calculator applies to other income, so use the capital gains tax calculator for the federal side.
Do Alabama cities tax income?
Some do. Birmingham and several other Alabama cities and counties levy occupational taxes, a percentage of wages earned within their limits that employers withhold; Birmingham's is 1%. This calculator does not include them.
How this calculator works
The calculator starts from federal AGI and takes the standard deduction from Alabama's chart: for each $500 of AGI, or part of it, over $25,999, single filers lose $25, heads of household $135 and joint filers $175; married-separate filers lose $88 for each $250 over $12,999.
It also subtracts the $1,500 or $3,000 personal exemption, the dependent exemption for each dependent and your 2026 federal income tax net of all credits, then applies the brackets. The refundable additional child tax credit and earned income credit lower the federal tax deduction, and it is never below zero. The earned income credit uses wages after 401(k) contributions and counts children under 17 as your qualifying children.
Worked example
A single filer with $75,000 in wages, no other income, no 401(k) contributions and no dependents has $63,330.00 of Alabama taxable income and about $3,126.50 in Alabama income tax, 4.17% of wages. After federal income tax of $7,670.00 and $5,737.50 in Social Security and Medicare, estimated take-home pay is $58,466.00, or $4,872.17 a month.
What this estimate excludes
City and county occupational taxes, the exemptions for Social Security, military retirement, public pensions and defined benefit plans, the retirement income exclusion for people 65 or older, itemized deductions, the vehicle loan interest deduction and Alabama credits. The earned income credit ignores older qualifying children entered as other dependents and the investment income limit, and is not allowed if married filing separately.
Alabama sources
- Alabama DOR: individual income tax rates
- 2025 Form 40 booklet: standard deduction chart, exemptions, federal tax deduction worksheet and exempt income
- Withholding tax tables and instructions (January 2026): standard deduction and exemptions
- 2025 Schedule RS: $6,000 retirement exclusion for age 65 or older
- City of Birmingham Tax and License Division: occupational tax
Federal tax uses IRS Revenue Procedure 2025-32. Read the full assumptions and sources.