How your paycheck is taxed in Alabama
A Alabama paycheck is reduced by federal income tax, Social Security (6.2%), Medicare (1.45%), and state income tax of 2% to 5%. The federal side uses the 2026 standard deduction of $16,100 (single) or $32,200 (joint) and seven brackets from 10% to 37%. The state side is described below. The standard deduction shown is the maximum; it steps down for higher incomes under Alabama's phase-out table, which is not modeled.
Formula
Net pay = Gross pay - Pre-tax deductions - Federal income tax - Social Security - Medicare - Alabama income tax - After-tax deductions. Federal taxable income is gross minus pre-tax deductions minus the standard deduction. Alabama taxable income is wages minus the state standard deduction and the personal exemption.
Alabama income tax brackets for 2026
Alabama's 5% top rate starts at just $3,000 of taxable income, so nearly all wage earners pay close to a flat 5%. Brackets apply to Alabama taxable income, which is wages after the $3,000 (single) or $8,500 (joint) standard deduction and the $1,500 per-person exemption.
| Rate | Single taxable income |
|---|---|
| 2% | $0 to $500 |
| 4% | $500 to $3,000 |
| 5% | Over $3,000 |
| Rate | Married filing jointly taxable income |
|---|---|
| 2% | $0 to $1,000 |
| 4% | $1,000 to $6,000 |
| 5% | Over $6,000 |
Head of household and married filing separately use the single schedule in this estimate; Alabama may publish separate columns.
Local taxes in Alabama
Birmingham and a few other cities levy a 1% to 2% occupational tax on wages earned there. Local taxes are not included in the estimate above; check your pay stub for a city or county line and subtract it from the net pay shown.
Worked examples: single filer, paid biweekly
Each row is a single filer with no pre-tax deductions, using the 2026 federal tables and the Alabama rules above. The $75,000 example: federal taxable income is $58,900 after the $16,100 standard deduction, giving $7,670.00 of federal tax (10% on the first $12,400, 12% up to $50,400, 22% on the rest). Social Security is 6.2% of $75,000 = $4,650.00, Medicare is 1.45% = $1,087.50, and Alabama tax on $70,500 of state taxable income is $3,485.00. Net pay is $58,107.50 a year, or $2,234.90 every two weeks.
| Salary | Federal tax | Social Security | Medicare | Alabama tax | Net per year | Net per paycheck |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,100 | $725 | $2,235 | $40,120 | $1,543.08 |
| $75,000 | $7,670 | $4,650 | $1,088 | $3,485 | $58,108 | $2,234.90 |
| $100,000 | $13,170 | $6,200 | $1,450 | $4,735 | $74,445 | $2,863.27 |
Effective total tax rates in these examples run from 19.8% at $50,000 to 25.6% at $100,000. Married filers with the same household income pay less federal tax because the joint standard deduction and brackets are twice as wide, and Alabama's joint brackets are wider too.
How the Alabama brackets apply to $75,000
State taxable income for the single $75,000 example is $70,500. Each slice is taxed at its own rate and the pieces are added up, so the marginal rate (5%) is higher than the average rate on all wages (4.65%).
| Bracket | Income in bracket | Tax |
|---|---|---|
| 2% | $500 | $10.00 |
| 4% | $2,500 | $100.00 |
| 5% | $67,500 | $3,375.00 |
| Total Alabama tax | $3,485.00 |
Hourly pay in Alabama
Hourly workers are annualized the same way: rate x hours per week x 52. At $20 an hour for 40 hours, gross pay is $41,600 a year or $800 a week. Federal income tax is $54.08 a week, Social Security $49.60, Medicare $11.60, and Alabama tax $34.90, leaving $649.82 per weekly paycheck. Overtime raises the annualized figure and can push a few dollars into the next federal bracket, but only those dollars are taxed at the higher rate.
Married filing jointly on $75,000
A married couple filing jointly with $75,000 of combined wages gets the $32,200 joint standard deduction and brackets twice as wide, so federal income tax falls to $4,640.00 from $7,670.00 for a single filer, and Alabama tax is $3,095.00 instead of $3,485.00. Social Security and Medicare do not change with filing status. Take-home pay for the couple is $61,527.50 a year, or $2,366.44 per biweekly paycheck.
Estimates for 2026 using federal and state tables; local taxes, benefits, and credits vary. Not tax advice. Compare other states on the national paycheck calculator.