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Alabama Paycheck Calculator (2026)

Last reviewed: April 20, 2026

Alabama applies a progressive state income tax with rates from 2% to 5% across three brackets. The top 5% rate kicks in at $3,000 of taxable income for single filers, which means most Alabama wage earners pay the top marginal rate on the majority of their income. Alabama allows residents to deduct federal income taxes paid when computing state taxable income, an unusual provision that softens the headline rate somewhat for higher earners. The state has no broad-based State Disability Insurance program funded by payroll. Birmingham and Bessemer levy a 1% occupational license tax on workers employed within city limits, but other Alabama municipalities do not impose a separate local income tax on wages. This calculator estimates 2026 Alabama take-home pay after federal tax, FICA, and state tax, with support for pre-tax 401(k) and HSA deductions.

vs. baseline ($85,000 single filer)

A $85,000 salary in Alabama takes home approximately $4,200 less than the same salary in a no-income-tax state like Texas or Florida.

Data pending verification

Alabama's federal-tax-deductibility on state returns is not yet wired into the calculator engine. For high earners with sizable federal liability, the calculator may slightly overstate Alabama state tax.

Birmingham and Bessemer occupational license taxes are not yet modeled. Subtract 1% of wages earned in those cities to approximate the post-tax figure.

Alabama state tax breakdown

Single-filer state income tax brackets used by the calculator for 2026.

Taxable IncomeRate
$0 - $5002%
$500 - $3,0004%
$3,000+5%

Cities in Alabama

Local jurisdictions with employee payroll tax. Linked entries have a dedicated city page; others can be selected in the calculator below.

Enter your salary to begin

Type above or pick a quick salary to see your 2026 take-home pay instantly.

Alabama paycheck FAQ

Why does Alabama tax the top rate at only $3,000 of income?
Alabama's bracket structure compresses very early: 2% applies to the first $500, 4% to the next slice, and 5% to everything above $3,000 for single filers. The thresholds have not been indexed for inflation in modern decades, so virtually all full-time wage earners pay the top marginal rate.
Can I deduct federal income taxes on my Alabama return?
Yes. Alabama is one of a small group of states (joining Iowa, Louisiana, Missouri, Montana, and Oregon) that allows a deduction for federal income taxes paid when computing state taxable income. The effect is to reduce the state's effective rate for higher earners with larger federal liabilities.
What is the Birmingham occupational license tax?
Birmingham (and the smaller city of Bessemer) levy a 1% occupational license tax on wages earned within city limits. It applies to residents and non-residents who work in the city, withheld from each paycheck. Other Alabama cities do not impose this kind of local income tax.
Does Alabama have State Disability Insurance?
No. Alabama does not run a State Disability Insurance program funded by employee payroll. Workers who want short-term disability coverage typically obtain it through their employer or a private policy.

Take-home at common salaries for Alabama

Dedicated salary-anchor pages with a federal-state-FICA breakdown, vs-baseline callouts, and a calculator pre-set to that salary and Alabama.

$50,000 after taxesin Alabama$75,000 after taxesin Alabama$100,000 after taxesin Alabama$150,000 after taxesin Alabama$200,000 after taxesin Alabama$250,000 after taxesin Alabama

See also

Run the full US paycheck calculatorCompare to Georgia paycheck calculatorCompare to Florida paycheck calculatorCompare to Mississippi paycheck calculatorCompare to Tennessee paycheck calculatorCompare to South Carolina paycheck calculatorCompare paycheck taxes between two locationsPaycheck and tax glossaryHow we calculate paycheck taxes

Reviewed

How This Page Is Reviewed

The Alabama paycheck page is reviewed against primary federal and state sources before each major tax-year update. Source links below are the references used to validate brackets, wage bases, and supported local taxes.

Reviewed by

PaycheckCalc Research Desk

Last reviewed

2026-04-20