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Birmingham, Alabama Paycheck Calculator (2026)

Last reviewed: April 20, 2026

Birmingham is Alabama's largest city and levies a 1% occupational license tax on wages earned within city limits, applied uniformly to residents and non-residents. Combined with Alabama's progressive state tax (top 5%, with federal-tax-deductibility), a Birmingham wage earner pays roughly 5.5% to 6% in state plus local income tax at higher income levels. Alabama lets residents deduct federal income tax paid from their Alabama taxable income, which softens the effective state burden compared to states without that provision. This calculator estimates 2026 take-home pay for a Birmingham wage earner after federal tax, FICA, Alabama state tax, and the Birmingham occupational license rate. It supports pre-tax 401(k) and HSA deductions.

$85,000 single filer take-home comparison

Birmingham, Alabama

$63,600

Alabama (no city tax)

$64,400

Texas (no income tax)

$68,600

Birmingham, Alabama take-home is -$800 vs the state-only figure and -$5,100 vs the no-income-tax baseline.

Birmingham, Alabama local tax breakdown

Local bracket schedule applied by the calculator for 2026.

Taxable IncomeRate
$0+1%

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Birmingham, Alabama paycheck FAQ

What is Alabama's federal income tax deduction, and how does it affect the state line?
Alabama is one of a small number of states that lets residents deduct federal income tax paid from their Alabama taxable income. This reduces the effective state rate compared to states without the deduction. The Alabama top marginal rate is 5%, but federal deductibility makes the effective rate lower than the nominal figure suggests.
Does the Birmingham occupational tax apply to non-residents?
Yes. The 1% rate applies to wages earned within Birmingham city limits regardless of where the worker lives. Withholding is at the work location, and the worker's residency does not change the Birmingham line.
How does Birmingham compare to Bessemer, the adjacent city?
Both Birmingham and Bessemer levy a 1% occupational license tax. The two cities sit immediately adjacent in Jefferson County, and the matching rates produce identical city-tax outcomes for residents of either jurisdiction at the same gross income.
Does Alabama have State Disability Insurance?
No. Alabama does not run a State Disability Insurance program funded by employee payroll. Workers seeking short-term disability coverage typically obtain it through their employer or a private policy.

See also

Run the full Alabama paycheck calculatorCompare to Gadsden paycheck calculatorCompare to Bessemer paycheck calculatorBrowse all city paycheck calculatorsBrowse paycheck calculators by statePaycheck and tax glossaryHow we calculate paycheck taxes

Reviewed

How This Page Is Reviewed

The Birmingham, Alabama paycheck page is reviewed against primary federal, state, and city 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