Alabama income tax in 2026
Alabama taxes wages at 2% to 5% of taxable income. Alabama deducts the federal income tax paid for the year and either a standard deduction of $3,000 ($8,500 joint, $5,200 head of family), which shrinks to $2,500 ($5,000 joint) as AGI rises from $26,000 to $35,500, or itemized deductions, which include the Social Security and Medicare tax withheld from wages (the larger choice from about $34,000 of wages for a single filer). There is also a personal exemption of $1,500 ($3,000 joint or head of family) and a $1,000 exemption for each dependent, $500 above $50,000 of AGI and $300 above $100,000.
| Taxable income | Rate |
|---|---|
| $0 to $500 | 2% |
| $500 to $3,000 | 4% |
| Over $3,000 | 5% |
| Taxable income | Rate |
|---|---|
| $0 to $1,000 | 2% |
| $1,000 to $6,000 | 4% |
| Over $6,000 | 5% |
Itemized deductions other than Social Security and Medicare tax, and the 2026–2028 deduction for up to $1,000 of overtime pay, aren't included.
Some of Alabama's 2026 figures weren't published when we checked, so the latest published amounts (or amounts worked out from the 2026 law) are used; we'll update them when the state publishes its 2026 forms.
Local taxes: About two dozen cities, including Birmingham, Bessemer and Auburn (1%), Opelika (1.5%) and Gadsden (2%), levy an occupational tax of 0.5%–2% on wages earned there. Not included above.
Examples
- Single, $60,000: take-home about $47,986 a year ($3,999 a month) after $5,020 federal tax, $4,590 FICA and $2,405 Alabama tax.
- Married, $120,000, two children under 17: about $100,181 a year ($8,348 a month) after $5,640 federal tax (after the Child Tax Credit), $9,180 FICA and $4,999 Alabama tax.
Both use the federal standard deduction and no pre-tax deductions; change any detail in the calculator above.
Questions
What is Alabama's income tax rate in 2026?
Alabama taxes wages at 2% to 5% of taxable income in 2026. Alabama deducts the federal income tax paid for the year and either a standard deduction of $3,000 ($8,500 joint, $5,200 head of family), which shrinks to $2,500 ($5,000 joint) as AGI rises from $26,000 to $35,500, or itemized deductions, which include the Social Security and Medicare tax withheld from wages (the larger choice from about $34,000 of wages for a single filer). There is also a personal exemption of $1,500 ($3,000 joint or head of family) and a $1,000 exemption for each dependent, $500 above $50,000 of AGI and $300 above $100,000.
How much is $60,000 a year after tax in Alabama?
For a single filer with no pre-tax deductions, about $47,986 a year ($3,999 a month): $5,020 federal income tax, $4,590 Social Security and Medicare and $2,405 Alabama income tax.
Are there local income taxes in Alabama?
Yes: About two dozen cities, including Birmingham, Bessemer and Auburn (1%), Opelika (1.5%) and Gadsden (2%), levy an occupational tax of 0.5%–2% on wages earned there. They aren't included in this calculator.
Alabama rules checked on 2026-10-01: revenue.alabama.gov, revenue.alabama.gov, revenue.alabama.gov, governor.alabama.gov. Federal figures from the IRS (Rev. Proc. 2025-32). An estimate, not tax advice.