Alabama paycheck taxes at a glance (2026)
| State income tax | Three brackets — 2%, 4% and 5% — with the 5% rate starting at $3,000 of taxable income ($6,000 for joint filers) |
|---|---|
| Deductions & credits | A standard deduction that shrinks as income rises (from $3,000 down to $2,500 for single filers and $8,500 down to $5,000 for joint filers); A personal exemption of $1,500 (single) or $3,000 (joint); A deduction for federal income tax paid |
| State payroll taxes | None paid by employees |
| Local income taxes | Some Alabama cities and counties levy an occupational tax on wages earned there, whether or not you live there — 1% in Birmingham, Bessemer and Auburn and 2% in Gadsden. |
| Federal (every state) | 2026 brackets from 10% to 37%; Social Security 6.2% up to $184,500; Medicare 1.45%, plus 0.9% on wages over $200,000 |
| Sales tax | 9.46% average combined rate — Alabama sales tax calculator |
How Alabama taxes your paycheck
Three brackets — 2%, 4% and 5% — with the 5% rate starting at $3,000 of taxable income ($6,000 for joint filers). The calculation starts from Alabama adjusted gross income, with a deduction for federal income tax paid, and filers get a standard deduction that shrinks as income rises (from $3,000 down to $2,500 for single filers and $8,500 down to $5,000 for joint filers), a personal exemption of $1,500 (single) or $3,000 (joint) and a deduction for federal income tax paid. Employers withhold it each payday using the state's withholding formula, so a pay stub can differ a little from the annual tax estimated here; any difference settles when you file your Alabama return.
Worked example: $65,000 salary in Alabama
A single filer paid every two weeks (26 paychecks), with no 401(k) or health deductions — the calculator's starting values:
| Line | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,500.00 | $65,000.00 |
| Federal income tax | −$216.15 | −$5,620.00 |
| Social Security (6.2%) | −$155.00 | −$4,030.00 |
| Medicare (1.45%) | −$36.25 | −$942.50 |
| Alabama income tax | −$104.96 | −$2,729.00 |
| Take-home pay | $1,987.63 | $51,678.50 |
Federal: $65,000 − $16,100 standard deduction = $48,900 taxable, which the 2026 single brackets tax at $5,620.00.
Alabama: $65,000 − $2,500 standard deduction − $1,500 personal exemption − $5,620 federal income tax deduction = $55,380 taxable; the brackets give $2,729.00 (4.2% of pay).
All taxes together take 20.5% of gross pay, leaving $51,678.50.
Take-home pay at other salaries in Alabama
| Salary | Single, per year | Single, biweekly | AL income tax | Total tax rate | Married jointly, per year |
|---|---|---|---|---|---|
| $40,000 | $32,691 | $1,257.35 | $1,629 | 18.3% | $34,679 |
| $50,000 | $40,286 | $1,549.46 | $2,069 | 19.4% | $42,464 |
| $65,000 | $51,679 | $1,987.63 | $2,729 | 20.5% | $53,990 |
| $80,000 | $61,789 | $2,376.48 | $3,322 | 22.8% | $65,382 |
| $100,000 | $75,079 | $2,887.63 | $4,102 | 24.9% | $80,572 |
| $150,000 | $107,768 | $4,144.91 | $6,023 | 28.2% | $116,932 |
Standard deduction only, with no pre-tax deductions or dependents and no local tax. The total tax rate (single) includes federal income tax, Social Security, Medicare, state income tax and state payroll contributions.
Alabama compared with nearby states
On a $65,000 salary (single, biweekly), Alabama ranks 38 of 51 for take-home pay, where 1 keeps the most. Tennessee, Florida, Mississippi and Georgia would leave you more each year.
Local income taxes are left out, except Maryland's county tax, which every resident pays (3.20% used here).
| State | State & county income tax | State payroll taxes | Take-home per year | vs. Alabama |
|---|---|---|---|---|
| Alabama | $2,729 | $0 | $51,679 | — |
| Mississippi | $1,868 | $0 | $52,540 | +$861 |
| Tennessee | $0 | $0 | $54,408 | +$2,729 |
| Georgia | $2,495 | $0 | $51,913 | +$234 |
| Florida | $0 | $0 | $54,408 | +$2,729 |
Good to know about Alabama paychecks
- Alabama is one of the few states that let you deduct the federal income tax you paid, which lowers the effective state rate.
Frequently asked questions
How much is $65,000 a year after taxes in Alabama?
About $51,679 a year, or $1,987.63 per biweekly paycheck, for a single filer with no pre-tax deductions in 2026. That is after $5,620 of federal income tax, $4,973 of Social Security and Medicare and $2,729 of Alabama income tax. A married couple filing jointly on the same salary keeps about $53,990.
Does Alabama have a state income tax?
Yes. Three brackets — 2%, 4% and 5% — with the 5% rate starting at $3,000 of taxable income ($6,000 for joint filers). On a $65,000 salary a single filer owes about $2,729 a year, 4.2% of pay.
What else is taken out of a paycheck in Alabama?
Nothing else statewide: Alabama has no employee-paid disability, paid-leave or unemployment payroll tax, so the other deductions are federal taxes and whatever you elect, such as retirement savings or health premiums.
Do cities or counties in Alabama tax wages?
Some Alabama cities and counties levy an occupational tax on wages earned there, whether or not you live there — 1% in Birmingham, Bessemer and Auburn and 2% in Gadsden.
Is take-home pay higher in Alabama or nearby states?
On a $65,000 single salary, Alabama ranks 38 of 51 for take-home pay at $51,679. Tennessee ($54,408), Florida ($54,408) and Mississippi ($52,540) leave more.
Estimates only — not tax advice. Actual withholding depends on your federal Form W-4, any Alabama withholding certificate, pre-tax benefits and year-to-date wages. Alabama income tax figures: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Jan. 1, 2026); Alabama Department of Revenue Form 40 instructions. Payroll contributions: sources listed above. Checked October 2026.