Alabama Tax Calculator
Calculate your Alabama state income tax, federal tax, and take-home pay for all jurisdictions
Calculate Your Alabama Taxes
Your annual income after above-the-line deductions
Leave 0 to use standard deduction
Health insurance, retirement contributions, etc.
Alabama Tax Calculation Results
💡 Alabama Tax Information
• Alabama has progressive state income tax rates from 2% to 5%
• Local income taxes vary by jurisdiction (1%-2%)
• Standard deductions vary based on AGI and filing status
• This calculator is for estimation purposes only
Example Calculation
Single Filer in Bessemer
AGI: $60,000
Filing Status: Single
Jurisdiction: Bessemer
Tax Breakdown
FICA Tax: $4,590
Federal Tax: $6,617
Alabama State Tax: $2,635
Local Tax: $600
Total Tax: $14,442
Result
Take-Home Pay: $45,558
Effective Rate: 24.1%
Monthly Pay: $3,797
Alabama Tax Brackets 2024
Single Filers
Married Filing Jointly
Alabama Local Tax Rates
Understanding Alabama Taxes
Alabama Tax Structure
Alabama has a progressive state income tax system with rates from 2% to 5%. In addition to state taxes, residents must pay federal income tax, FICA tax, and local income tax depending on their jurisdiction.
Tax Components
- •FICA Tax: 7.65% (Social Security + Medicare)
- •Federal Tax: Progressive rates 10%-37%
- •Alabama State Tax: Progressive rates 2%-5%
- •Local Tax: 1%-2% depending on jurisdiction
Deductions & Exemptions
Alabama Standard Deductions
- • Single: $2,500 (reduced for higher AGI)
- • Married Filing Jointly: $7,500 (reduced for higher AGI)
- • Personal Exemptions: $1,500 (single), $3,000 (married)
Important: Standard deductions are reduced for AGI over $23,500. This calculator includes these adjustments automatically.
Alabama Tax Calculation Process
Federal Taxes
- Calculate FICA tax (7.65% of AGI)
- Subtract standard/itemized deductions from AGI
- Apply progressive federal tax brackets
- Determine marginal and effective tax rates
Alabama State Taxes
- Apply Alabama standard deduction (AGI-adjusted)
- Subtract personal exemptions
- Apply Alabama progressive tax brackets (2%-5%)
- Add local tax based on jurisdiction
Local Tax Jurisdictions
Alabama allows certain municipalities to impose local income taxes. The rate varies by jurisdiction:
Higher Rate Areas
- • Gadsden: 2% local income tax
Standard Rate Areas
- • Bessemer: 1% local income tax
- • Birmingham: 1% local income tax
- • Macon County: 1% local income tax