Alabama income tax rates for 2026
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. Each rate applies only to the slice of taxable income inside its bracket, so earning enough to reach a higher bracket never lowers your income after tax.
| Rate | Taxable income |
|---|---|
| 2% | $0 – $500 |
| 4% | $501 – $3,000 |
| 5% | Over $3,000 |
| Rate | Taxable income |
|---|---|
| 2% | $0 – $1,000 |
| 4% | $1,001 – $6,000 |
| 5% | Over $6,000 |
Heads of household use the single brackets. Married people filing separately use the single brackets.
Deductions, exemptions and credits
Before the rates apply, Alabama allows 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. The calculator uses these for the filing status you choose; dependent exemptions and credits, which lower the tax further for families, are not included.
- Alabama dependent exemptions are not included.
Worked example: $75,000 in Alabama
Single filer with $75,000 of income before state deductions.
Taxable income = $75,000 − $2,500 (standard deduction) − $1,500 (personal exemption) − $7,670 (federal income tax deduction) = $63,330.00
Brackets: 2% × $500.00 + 4% × $2,500.00 + 5% × $60,330.00 = $3,126.50
Alabama income tax = $3,126.50 — an effective rate of 4.17% and a marginal rate of 5%.
Alabama income tax at common incomes
| Income | Single | Effective | Married jointly | Effective |
|---|---|---|---|---|
| $30,000 | $1,175 | 3.92% | $924 | 3.08% |
| $50,000 | $2,069 | 4.14% | $1,931 | 3.86% |
| $75,000 | $3,127 | 4.17% | $3,038 | 4.05% |
| $100,000 | $4,102 | 4.1% | $4,138 | 4.14% |
| $150,000 | $6,023 | 4.02% | $6,253 | 4.17% |
| $250,000 | $9,695 | 3.88% | $10,147 | 4.06% |
Income before state deductions; standard deduction and personal exemptions for the filer (and spouse) only; no dependents, itemized deductions or local taxes.
Alabama compared with nearby states
At $75,000 (single), Alabama ranks 14 of 51 for state income tax, where 1 is the highest. Tennessee and Florida do not tax wages.
| State | Tax on $75,000 | Effective rate | Top rate |
|---|---|---|---|
| Alabama | $3,127 | 4.17% | 5% |
| Mississippi | $2,268 | 3.02% | 4% |
| Tennessee | $0 | 0% | none |
| Georgia | $2,994 | 3.99% | 4.99% |
| Florida | $0 | 0% | none |
More about taxes in Alabama
- 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
What is the Alabama income tax rate for 2026?
Three brackets — 2%, 4% and 5% — with the 5% rate starting at $3,000 of taxable income ($6,000 for joint filers). A single filer with $75,000 of income is in the 5% bracket but pays an effective 4.17%, because lower slices of income are taxed at lower rates.
How much Alabama income tax do I pay on $75,000?
About $3,127 for a single filer — 4.17% of income — after $2,500 of standard deduction, $1,500 of personal exemption and $7,670 of federal income tax deduction. A married couple with $150,000 owes about $6,253.
What deductions does Alabama allow?
Alabama allows 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. Dependent exemptions or credits, where the state offers them, lower the tax further.
Is Alabama's income tax higher than its neighbors'?
At $75,000 (single), Alabama ranks 14 of 51 for state income tax, where 1 is the highest. Among nearby states, Tennessee is lowest at $0 and Alabama is highest at $3,127.
Estimates only — not tax advice. Alabama figures: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Jan. 1, 2026); Alabama Department of Revenue Form 40 instructions. Checked October 2026. Your return may include income, deductions and credits this estimate leaves out.