Alabama tax tables 2026
The figures set by or for Alabama for 2026: income tax brackets, payroll contributions and employer rates. Federal or national figures for the US are on the national page.
- 2026-01-01 to 2026-12-31
- USD
Income tax
Alabama income tax brackets: Single, head of family, married filing separately
| State taxable income, per year | Rate |
|---|---|
| $0 to $500 | 2% |
| $500 to $3,000 | 4% |
| Over $3,000 | 5% |
Source: Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026), Formula for Computing Alabama Withholding Tax, p.7 · retrieved 2026-10-16
Alabama income tax brackets: Married filing jointly
| State taxable income, per year | Rate |
|---|---|
| $0 to $1,000 | 2% |
| $1,000 to $6,000 | 4% |
| Over $6,000 | 5% |
Source: Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026), Formula for Computing Alabama Withholding Tax, p.7 · retrieved 2026-10-16
Alabama income tax: key figures
| Item | Value |
|---|---|
| Type | Progressive brackets |
| Top rate | 5% |
| Standard deduction: SinglePhases down to $2,500 between $26,000 and $35,500 of income. | $3,000 |
| Standard deduction: Married filing jointlyPhases down to $5,000 between $26,000 and $35,500 of income. | $8,500 |
| Standard deduction: Head of householdHead of family; phases down to $2,500 between $26,000 and $35,500. | $5,200 |
| Standard deduction: Married filing separatelyPhases down to $2,500 between $13,000 and $17,750 of income. | $4,250 |
| Personal exemption — single or married filing separately (exemption) | $1,500 |
| Personal exemption — married filing jointly or head of family (exemption) | $3,000 |
| Dependent exemption (income up to $50,000) (exemption)$500 for income over $50,000 up to $100,000; $300 above $100,000. | $1,000 |
Source: Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026), Formula for Computing Alabama Withholding Tax, p.7 · retrieved 2026-10-16
Employee contributions
Alabama supplemental (bonus) withholding
| Item | Value |
|---|---|
| Supplemental rate | 5% |
Source: Alabama Department of Revenue, Withholding Tax Tables and Instructions (rev. January 2026), Computing Alabama Withholding Tax, p.3 · retrieved 2026-10-16
Alabama local income taxes
| Item | Value |
|---|---|
| Birmingham (city)Non-residents: 1%. Basis: all wages | 1% |
| Auburn (city)Non-residents: 1%. Basis: all wagesSource: auburnalabama.org · retrieved 2026-10-16 | 1% |
| Opelika (city)Non-residents: 1%. Basis: all wagesSource: opelika-al.gov · retrieved 2026-10-16 | 1% |
| Gadsden (city)Non-residents: 2%. Basis: all wagesSource: cityofgadsden.com · retrieved 2026-10-16 | 2% |
Local taxes the calculators support, each with its own official source. Rates are for residents unless a non-resident rate is given.
Source: City of Birmingham, 'How to Become a Vendor for the Magic City Classic' — occupational tax calculation example (Tax & License Division) · retrieved 2026-10-16
Employer costs
Alabama state unemployment insurance (employer)
| Item | Value |
|---|---|
| Taxable wage base (per employee, per year) | $8,000 |
| New employer rate | 2.7% |
| Experience-rated range: lowest | 0.2% |
| Experience-rated range: highest | 5.4% |
Alabama's base new-employer rate from the U.S. Department of Labor's 2026 summary. State surcharges, if any, are not included.
Source: U.S. Department of Labor, Significant Provisions of State Unemployment Insurance Laws, Effective July 2026 · retrieved 2026-10-16
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Official sources
- Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026) · retrieved 2026-10-16
- Form A-4 Employee's Withholding Tax Exemption Certificate (Rev. 4/2025) · retrieved 2026-10-16
- How to Become a Vendor for the Magic City Classic (occupational tax example) · retrieved 2026-10-16
- Tax and License Division · retrieved 2026-10-16
- Occupational License Fee · retrieved 2026-10-16
- Occupation License · retrieved 2026-10-16
- Occupation License Fee quarterly return form (rate reduced to 1% as of April 1, 2025) · retrieved 2026-10-16
- Business registration form (occupation tax note) · retrieved 2026-10-16
- City Council minutes, February 28, 2023 (resolution on the 2% Occupational License Fee) · retrieved 2026-10-16
- U.S. Department of Labor, Significant Provisions of State Unemployment Insurance Laws, Effective July 2026 · retrieved 2026-10-16
How every figure is checked: methodology. All datasets: CalcBloc data.