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Alabama Income Tax Calculator

Estimate your 2025 combined federal and Alabama income tax — Alabama adds progressive state income tax on top of federal.

InputsTY-2025
$
$
$
Federal + state tax18.2% effective
$18,184/yr
10% on $11,925$1,193
12% on $36,550$4,386
22% on $35,775$7,871
federal tax subtotal$13,449
AL state tax$4,735
taxable income
$84,250
marginal rate
22.0%
after tax
$81,816

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.

Common questions

What is the Alabama state income tax rate?
Alabama has progressive state income tax brackets, applied on top of your federal tax.
Does Alabama tax capital gains?
Yes — Alabama taxes capital gains as ordinary income at the same rate as your wages.

How we calculate this

Federal brackets per our income-tax methodology, plus 2025 Alabama state tax. Estimates only — not tax advice.

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.