How Alabama paycheck taxes work
- Alabama income tax: rates from 2% to 5% for 2026.
- Before tax, Alabama subtracts a standard deduction of $3,000 single and $8,500 married filing jointly and a personal exemption of $1,500 ($3,000 for a married couple).
- Federal income tax is subtracted first.
- Alabama lets you deduct the federal income tax you pay before working out state tax. The calculator does this.
- Alabama's standard deduction shrinks as income rises. We use the full amount, so Alabama tax can be slightly understated for middle and higher incomes.
- Some Alabama cities and counties charge an occupational tax on wages. Enter it in Local tax %.
Alabama income tax rates for 2026
| Rate | Single | Married filing jointly |
|---|---|---|
| 2% | $0 – $500 | $0 – $1,000 |
| 4% | $500 – $3,000 | $1,000 – $6,000 |
| 5% | over $3,000 | over $6,000 |
How your take-home pay is calculated
Take-home = Gross pay − 401(k) − health − HSA − federal income tax − Social Security − Medicare − Alabama income tax − local tax
Federal income tax uses the 2026 brackets and standard deduction. Social Security is 6.2% of pay up to $184,500 a year; Medicare is 1.45% of all pay plus 0.9% above $200,000. Pre-tax health and HSA payroll deductions lower all of these; 401(k) lowers income tax only.
Alabama take-home pay examples
Single filer, paid every two weeks, no 401(k) or other pre-tax deductions, no local tax:
| Salary | Federal tax | Social Security + Medicare | State income tax | Take-home a year | Per biweekly check |
|---|---|---|---|---|---|
| $50,000 | $3,820.00 | $3,825.00 | $2,044.00 | $40,311.00 | $1,550.42 |
| $75,000 | $7,670.00 | $5,737.50 | $3,101.50 | $58,491.00 | $2,249.65 |
| $100,000 | $13,170.00 | $7,650.00 | $4,076.50 | $75,103.50 | $2,888.60 |
Worked example, $75,000 salary:
- Federal: $75,000 − $16,100 standard deduction = $58,900 taxable. Tax = $1,240 + $4,560 + 22% × $8,500 = $7,670.00.
- Social Security 6.2% = $4,650.00. Medicare 1.45% = $1,087.50.
- Alabama taxable income $62,830.00, Alabama income tax $3,101.50.
- Take-home: $58,491.00 a year, or $2,249.65 every two weeks. That's 22% of pay in taxes.
What this calculator simplifies
- Tax is worked out for the whole year and spread evenly over your paychecks. Employers use withholding tables, so a real check can differ by a few dollars; you settle the difference when you file.
- Federal tax uses the 2026 standard deduction only. Dependents, itemized deductions and the new tips, overtime and senior deductions aren't included (W-4 Step 3 credits can be entered under More options).
- State tax covers a typical W-2 employee who lives and works in the state. State credits for dependents, renters, earned income and similar aren't included.
- Head of household and married filing separately use Alabama's single amounts.
Compare states on the paycheck calculator by state, or see federal tax bracket by bracket in the income tax calculator.
Sources
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- IRS IR-2025-103: 2026 tax inflation adjustments
- SSA contribution and benefit base ($184,500 for 2026)
- IRS Topic 560, Additional Medicare Tax
State figures: 2026. Last reviewed October 2026.