Your hub for Alabama taxes: state income tax (2% to 5%), plus free calculators for take-home pay, self-employment tax, quarterly estimates, and salary conversion.
Last updated: May 2026 · Data: IRS, BLS, Alabama Department of Revenue
Alabama levies a state income tax (2% to 5%) that is withheld from wages on top of federal tax and FICA. Alabama is one of the few states that allows a deduction for federal income taxes paid on your state return, which effectively lowers the state tax burden.
| Tax | 2026 Rate / Detail |
|---|---|
| Alabama State Income Tax | 2% to 5% |
| Alabama State Sales Tax (base) | 4% |
| Federal Income Tax | 10% to 37% (progressive brackets) |
| Social Security | 6.2% on first $176,100 |
| Medicare | 1.45% on all wages (plus 0.9% above $200,000) |
| Federal Standard Deduction (Single / MFJ) | $15,000 / $30,000 |
| Minimum Wage | $7.25 / hour |
| State Tax Authority | Alabama Department of Revenue |
Alabama has a state income tax. The 2026 rate is 2% to 5%. This applies on top of federal income tax and FICA (Social Security and Medicare) withheld from your pay.
For 2026, Alabama income tax is 2% to 5%. Alabama is one of the few states that allows a deduction for federal income taxes paid on your state return, which effectively lowers the state tax burden.
A Alabama paycheck has federal income tax, Alabama state income tax (2% to 5%), Social Security (6.2% up to $176,100), and Medicare (1.45%) withheld. Try the take-home pay calculator for a personalized net-pay estimate.
Yes. Self-employed workers in Alabama generally make quarterly estimated payments to the IRS and to the state if they expect to owe tax. The quarterly estimated tax calculator estimates each payment and the due dates.
The Alabama statewide base sales tax rate is 4%. Local jurisdictions may add their own rates on top of the state rate.