Alabama Paycheck Calculator
Free Alabama paycheck calculator. Estimate your take-home pay with current Alabama state tax rates and federal withholdings. Calculate federal income tax, Social Security, Medicare, and Alabama state withholdings instantly.
What you should know about Alabama taxes
Alabama is one of the few states that still allows you to deduct your federal income tax from your state taxable income. That quirk alone can save workers hundreds of dollars per year, but it also makes estimating your paycheck trickier than in most states.
Alabama Income Tax Brackets — 2026
| Tax Rate | Taxable Income Range |
|---|---|
| 2% | $0 – $500 |
| 4% | $501 – $3,000 |
| 5% | $3,001+ |
How Alabama State Taxes Work
Alabama uses a three-bracket progressive tax system with rates of 2%, 4%, and 5%. What makes AL unique is the federal tax deduction — you can subtract the federal income tax you owe from your Alabama taxable income before calculating state tax. Most tax calculators miss this. Ours does not. The standard deduction in Alabama is $2,500 for single filers and $7,500 for married couples filing jointly, which is lower than many states. Personal exemptions add another $1,500 per person. For workers in Birmingham, Huntsville or Mobile, this means your actual state tax bill is often lower than the bracket rates suggest.
What Gets Taken Out of Your Alabama Paycheck
Every paycheck in Alabama has federal income tax, Social Security (6.2%), and Medicare (1.45%) withheld — same as everywhere else. On top of that, you pay the Alabama state income tax at whatever bracket your income falls in. There is no local income tax anywhere in Alabama, which is a relief compared to states like Ohio or Pennsylvania where cities tack on their own percentages. If your employer offers health insurance, 401(k), or other pre-tax benefits, those come out before taxes are calculated, lowering your overall tax bill.