Alabama Income Tax Calculator
Estimate your Alabama income tax burden
Updated for 2023 tax year on Mar 01, 2023
Income tax calculators by state
Alabama state taxes
Quick Alabama tax facts
- State income tax: 2% to 5%
- Local occupational tax: 0.5% to 2%
- State sales tax: 4%
- Property tax: an average rate of approximately 0.42%
- Gas tax: $0.24 per gallon on gasoline and $0.25 per gallon on diesel fuel
- Tobacco tax: $0.675 per pack of 20 cigarettes
- Insurance premium tax: 1% to 4%
From Wikipedia
Alabama income taxes
Alabama’s income tax system is progressive, with rates ranging from 2% to 5%, depending on income levels. The state income tax is a significant source of revenue for Alabama, funding essential state services like education, health care, and infrastructure. However, it’s not the only income tax that Alabamians might face. Some cities and counties in Alabama levy an occupational tax, typically a percentage of the individual’s gross income.
The state standard deduction in Alabama varies depending on filing status, with a larger deduction available for married and filing jointly. Deductions reduce the amount of income subject to taxation, and the standard deduction is a straightforward way that Alabama allows taxpayers to reduce their tax burden.
Additionally, Alabama offers several exemptions that reduce taxable income. These include personal exemptions for the taxpayer and dependents and exemptions for the elderly and disabled. The availability of these exemptions ensures that Alabama’s tax system considers the taxpayer’s ability to pay.
Calculate your income tax in Alabama
Calculating your Alabama state income tax is similar to the steps we listed on our Federal income tax calculator:
- Determine your filing status
- Work out your adjusted gross income [Gross income − Retirement contributions = Adjusted gross income]
- Calculate your state taxable income [Adjusted gross income − (Standard/Itemized deductions + Exemptions) = State taxable income]
- Figure out your state/local tax liability [State taxable income × State tax rate = State tax liability]
State income tax brackets
Each filer type has different progressive tax rates. Refer to Tax Foundation for more details.
| Tax year | Filing status | Taxable income | Rate |
|---|---|---|---|
| 2022 2021 2020 |
Single Married, Filing Separately Head of Household |
$0 – $500 | 2.00% |
| $501 – $3,000 | 4.00% | ||
| $3,001+ | 5.00% | ||
| Married, Filing Jointly or Widow(er) | $0 – $1,000 | 2.00% | |
| $1,001 – $6,000 | 4.00% | ||
| $6,001+ | 5.00% |
Local income tax
Occupational tax is based on gross income.
| Tax year | Taxable income | City | Rate |
|---|---|---|---|
| 2022 2021 2020 |
Any | Attalla | 2.00% |
| Auburn | 1.00% | ||
| Bear Creek | 1.00% | ||
| Bessemer | 1.00% | ||
| Birmingham | 1.00% | ||
| Brilliant | 1.00% | ||
| Fairfield | 1.00% | ||
| Gadsden | 2.00% | ||
| Glencoe | 2.00% | ||
| Goodwater | 0.75% | ||
| Guin | 1.00% | ||
| Hacklebug | 1.00% | ||
| Haleyville | 1.00% | ||
| Hamilton | 1.00% | ||
| Leeds | 1.00% | ||
| Lynn | 1.00% | ||
| Midfield | 1.00% | ||
| Mosses | 1.00% | ||
| Opelika | 1.50% | ||
| Rainbow City | 2.00% | ||
| Red Bay | 0.50% | ||
| Shorter | 1.00% | ||
| Southside | 2.00% | ||
| Sulligent | 1.00% | ||
| Tuskegee | 2.00% |
State standard deduction
| Tax year | Filing status | Adjusted gross income | Standard deduction amount |
|---|---|---|---|
| 2022 2021 2020 |
Single | $0 – $20,499 | $2,500 |
| $20,500 – $20,999 | $2,475 | ||
| $21,000 – $21,499 | $2,450 | ||
| $21,500 – $21,999 | $2,425 | ||
| $22,000 – $22,499 | $2,400 | ||
| $22,500 – $22,999 | $2,375 | ||
| $23,000 – $23,499 | $2,350 | ||
| $23,500 – $23,999 | $2,325 | ||
| $24,000 – $24,499 | $2,300 | ||
| $24,500 – $24,999 | $2,275 | ||
| $25,000 – $25,499 | $2,250 | ||
| $25,500 – $25,999 | $2,225 | ||
| $26,000 – $26,499 | $2,200 | ||
| $26,500 – $26,999 | $2,175 | ||
| $27,000 – $27,499 | $2,150 | ||
| $27,500 – $27,999 | $2,125 | ||
| $28,000 – $28,499 | $2,100 | ||
| $28,500 – $28,999 | $2,075 | ||
| $29,000 – $29,499 | $2,050 | ||
| $29,500 – $29,999 | $2,025 | ||
| $30,000+ | $2,000 | ||
| Married, Filing Jointly | $0 – $20,499 | $7,500 | |
| $20,500 – $20,999 | $7,325 | ||
| $21,000 – $21,499 | $7,150 | ||
| $21,500 – $21,999 | $6,975 | ||
| $22,000 – $22,499 | $6,800 | ||
| $22,500 – $22,999 | $6,625 | ||
| $23,000 – $23,499 | $6,450 | ||
| $23,500 – $23,999 | $6,275 | ||
| $24,000 – $24,499 | $6,100 | ||
| $24,500 – $24,999 | $5,925 | ||
| $25,000 – $25,499 | $5,750 | ||
| $25,500 – $25,999 | $5,575 | ||
| $26,000 – $26,499 | $5,400 | ||
| $26,500 – $26,999 | $5,225 | ||
| $27,000 – $27,499 | $5,050 | ||
| $27,500 – $27,999 | $4,875 | ||
| $28,000 – $28,499 | $4,700 | ||
| $28,500 – $28,999 | $4,525 | ||
| $29,000 – $29,499 | $4,350 | ||
| $29,500 – $29,999 | $4,175 | ||
| $30,000+ | $4,000 | ||
| Married, Filing Separately | $0 – $10,249 | $3,750 | |
| $10,250 – $10,499 | $3,662 | ||
| $10,500 – $10,749 | $3,574 | ||
| $10,750 – $10,999 | $3,486 | ||
| $11,000 – $11,249 | $3,398 | ||
| $11,250 – $11,499 | $3,310 | ||
| $11,500 – $11,749 | $3,222 | ||
| $11,750 – $11,999 | $3,134 | ||
| $12,000 – $12,249 | $3,046 | ||
| $12,250 – $12,499 | $2,958 | ||
| $12,500 – $12,749 | $2,870 | ||
| $12,750 – $12,999 | $2,782 | ||
| $13,000 – $13,249 | $2,694 | ||
| $13,250 – $13,499 | $2,606 | ||
| $13,500 – $13,749 | $2,518 | ||
| $13,750 – $13,999 | $2,430 | ||
| $14,000 – $14,249 | $2,342 | ||
| $14,250 – $14,499 | $2,254 | ||
| $14,500 – $14,749 | $2,166 | ||
| $14,750 – $14,999 | $2,078 | ||
| $15,000+ | $2,000 | ||
| Head of Household | $0 – $20,499 | $4,700 | |
| $20,500 – $20,999 | $4,565 | ||
| $21,000 – $21,499 | $4,430 | ||
| $21,500 – $21,999 | $4,295 | ||
| $22,000 – $22,499 | $4,160 | ||
| $22,500 – $22,999 | $4,025 | ||
| $23,000 – $23,499 | $3,890 | ||
| $23,500 – $23,999 | $3,755 | ||
| $24,000 – $24,499 | $3,620 | ||
| $24,500 – $24,999 | $3,485 | ||
| $25,000 – $25,499 | $3,350 | ||
| $25,500 – $25,999 | $3,215 | ||
| $26,000 – $26,499 | $3,080 | ||
| $26,500 – $26,999 | $2,945 | ||
| $27,000 – $27,499 | $2,810 | ||
| $27,500 – $27,999 | $2,675 | ||
| $28,000 – $28,499 | $2,540 | ||
| $28,500 – $28,999 | $2,405 | ||
| $29,000 – $29,499 | $2,270 | ||
| $29,500 – $29,999 | $2,135 | ||
| $30,000+ | $2,000 |
State exemptions
There are state-level exemptions for all types of filers and dependents. Refer to Tax Foundation for more details.
| Tax year | Filing status | Personal exemption amount |
|---|---|---|
| 2022 2021 |
Single Married, Filing Separately Head of Household |
$1,500 |
| Married, Filing Jointly or Widow(er) | $3,000 | |
| Dependent(s) | $1,000 | |
| 2020 | Single Married, Filing Separately Head of Household |
$1,500 |
| Married, Filing Jointly or Widow(er) | $3,000 | |
| Dependent(s) | $500 |
Alabama sales tax
The sales tax rate in Alabama is 4%, but localities can add their own sales taxes, bringing the total sales tax rate to as high as 11% in some areas. The revenue from sales taxes funds various state and local services, making it a significant component of Alabama’s overall tax system.
Alabama property tax
Alabama boasts one of the lowest property tax rates in the nation, with an average rate of approximately 0.42%.
Alabama capital gains tax
Capital gains in Alabama are treated as regular income and are subject to the same tax rates. This approach ensures that income from investments is taxed like income from work, contributing to a more equitable tax system.
Alabama gas tax
The state imposes a gas tax of $0.24 per gallon on gasoline and $0.25 per gallon on diesel fuel.
Alabama tobacco tax
The state imposes a tobacco tax of $0.675 per pack of 20 cigarettes, with other tobacco products taxed at different rates depending on the type and weight.
Alabama insurance tax
Insurance companies operating in Alabama are subject to a premium tax, with rates ranging from 1% to 4%, depending on the type of insurance.
FAQs
How do I calculate my Alabama income tax?
There are just four easy steps to calculate your Alabama income tax.
- Determine your filing status
- Gross income − Retirement contributions = Adjusted gross income
- Adjusted gross income − (Standard/Itemized deductions + Exemptions) = State taxable income
- State taxable income × State tax rate = State tax liability
There is no state payroll tax.
How much is $48,000 a year after taxes in Alabama?
The total income tax is $9,857.50 for a single filer. The after-tax income is $38,142.50.