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Alabama Income Tax Calculator

Estimate your 2026 combined federal and Alabama income tax — Alabama adds progressive state income tax on top of federal.

InputsTY-2026
$
$
$
Federal + state tax17.9% effective
$17,905/yr
10% on $12,400$1,240
12% on $38,000$4,560
22% on $33,500$7,370
federal tax subtotal$13,170
AL state tax$4,735
taxable income
$83,900
marginal rate
22.0%
after tax
$82,095

A single filer earning Alabama's median household income of $65,560 owes about $3,013 in Alabama state income tax — an effective state rate of 4.60%. That is state tax only, on top of federal income tax and FICA.

Based on 2026 Alabama rules and 2026 federal rules, with the standard deduction and no other adjustments. Median income is the 2024 Census figure.

Income tax in Alabama

Alabama's brackets are tiny — the 5% top rate starts at just $3,000 of taxable income for single filers ($6,000 joint), so nearly everyone pays close to 5% at the margin. Alabama uniquely lets filers deduct federal income tax paid from state taxable income (not modeled here), which lowers real-world effective rates, and cities such as Birmingham levy roughly 1% occupational taxes that are also excluded.

Alabama income tax structure (2026)

Alabama uses 3 progressive brackets on income above a $3,000 standard deduction (single) plus a $1,500 personal exemption. Single-filer brackets:

$0 – $5002%
$501 – $3,0004%
over $3,0015%

Married-filing-jointly thresholds differ (roughly double in most states). Each slice of income is taxed at its own rate — landing in a bracket does not tax your whole income at that rate.

Common questions

What are Alabama's income tax brackets?
Alabama uses three brackets for 2026: 2% on the first $500 of taxable income, rising to 5% above $3,000 for a single filer. Taxable income here is your pay after a $3,000 standard deduction ($8,500 joint) and a $1,500 personal exemption per filer. Joint filers get their own, wider thresholds.
What is the top income tax rate in Alabama?
5%, and it begins at $3,000 of taxable income for a single filer — about $7,500 of gross pay, once the $4,500 Alabama subtracts first is added back. Only income above that point is taxed at that rate; everything below it is taxed in the lower bands.
What is the tax bill on $65,560 in Alabama?
A single filer on Alabama's $65,560 median household income (2024 Census figure) owes roughly $3,013 to Alabama — an effective state rate of 4.6% against a 5% marginal bracket — plus about $5,687 of federal income tax.
Does Alabama have a personal exemption?
Yes — $1,500 per filer, or $3,000 on a joint return, subtracted before the brackets apply. It comes on top of the $3,000 standard deduction, for $4,500 of total single-filer subtractions.

How we calculate this

Federal brackets per our income-tax methodology, plus Alabama's 2026 state tax. Estimates only — not tax advice.

Tax Foundation: 2026 state individual income tax rates and brackets (updated Feb 11, 2026) →Alabama Dept. of Revenue — Withholding Tax Tables and Instructions for Employers (rev. January 2026) →

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Estimates for general informational purposes only; not tax advice. Alabama figures are simplified (credits, local taxes, and AGI adjustments vary) and should be verified with the state Department of Revenue. This estimate does not model municipal occupational taxes in cities such as Birmingham. Alabama's three-rate 2%–5% schedule is applied with the $3,000 standard deduction and $1,500 personal exemption for a single filer — not itemized deductions, exemption phase-outs, or any Alabama tax credit.