Alabama Paycheck Calculator
In Alabama for 2026, a $75,000 salary takes home about $58,033 per year after federal income tax and FICA (Social Security and Medicare), and Alabama state income tax.
These are example numbers. Type yours to see your own.
Based on a $75,000 salary in Alabama, single filer, paid every 2 weeks
$2,232.02
take-home per 2 weeks · $58,033/yr
How your federal tax is calculated on a paycheck in Alabama, bracket by bracket
| Bracket | Income taxed here | Tax |
|---|---|---|
| 10% ($0 – $12,400) | $12,400 | $1,240 |
| 12% ($12,400 – $50,400) | $38,000 | $4,560 |
| 22% ($50,400 – $105,700) | $8,500 | $1,870 |
Taxable income $58,900 after the $16,100 standard deduction. Your federal marginal rate is 22%, the federal tax on your next dollar earned.
Compare your take-home pay with Georgia, Tennessee or Mississippi
Which 2026 rules apply to your Alabama paycheck?
Choose anything that matches how you are paid in Alabama and the list trims itself.
Tips: federally deductible, but Alabama still taxes tips in full. Work out the tip deduction
Overtime: federally deductible, with a smaller capped Alabama break on top. Work out the overtime deduction
Bonuses: Alabama withholds a flat 5% on supplemental pay, separately from your regular wages. Estimate the tax on a bonus in Alabama
Turning 65: the $6,000 federal senior deduction comes off your federal return; Alabama's three brackets still apply to the same wages. Check the senior deduction
Use this free Alabama (AL) paycheck, payroll and income tax calculator to estimate your 2026 take-home pay after federal income tax, Social Security, Medicare, and Alabama's graduated state income tax (three brackets, 2% to 5%).
Use the calculator for your own salary or hourly rate.
Alabama's three-bracket ladder (2%–5%): what comes out of each 2026 check
Alabama taxes income on a graduated state schedule for 2026, applied after the state deduction for your filing status. This calculator applies that on top of federal withholding and Social Security / Medicare to estimate your Alabama take-home pay.
Alabama uses a graduated income tax with 3 brackets for 2026, with marginal rates ranging from 2% to a top rate of 5% (which applies to single-filer taxable income above $3,000). For 2026, Alabama's state standard deduction is $3,000 for single filers and $8,500 for married couples filing jointly. As a worked example, a single filer earning $60,000 pays about $2,810 in Alabama income tax (roughly 4.7% of gross) before federal tax and FICA.
What this estimate doesn't include: Alabama's standard deduction is income-based and PHASES DOWN as your Alabama AGI rises (from the maximums shown toward a lower floor); this estimate applies the maximum standard deduction, so for higher incomes the actual tax can be slightly HIGHER than shown. Alabama's personal exemption ($1,500 single / $3,000 married / and $1,000 per dependent) and the dependent exemption are not modeled, so estimates run slightly high on that account. Local income taxes are not included. Many Alabama municipalities/counties levy a separate LOCAL occupational (wage) tax (e.g. ~1% in Birmingham, Gadsden, Macon County) that is not included in this estimate. The federal income tax deduction Alabama allows, and the 2026 overtime-pay subtraction (up to $1,000), are not modeled. City, county or school-district income taxes where they apply, court-ordered deductions, union dues, and anything else your specific employer withholds are not in this figure; your pay stub is the authority on those.
Estimates only, not tax advice. The section "What this estimate doesn't include" above lists what's left out; see also our terms and the corrections log.
Alabama's three 2026 brackets, from 2% to 5% (single filers)
Alabama's graduated single-filer schedule for 2026, applied after the state deduction:
| Taxable income | Marginal rate |
|---|---|
| $0 – $500 | 2% |
| $500 – $3,000 | 4% |
| $3,000 and above | 5% |
Two Alabama payroll quirks worth knowing
- Alabama lets taxpayers deduct their full federal income tax liability before computing state tax (a 1965 constitutional provision) — one of the very few states still allowing a full federal income tax deduction, which meaningfully lowers effective state withholding.
- Workers in cities like Gadsden (2.0%), Birmingham (1.0%) and Bessemer (1.0%) have a municipal occupational tax withheld from every paycheck on top of the 2%–5% state income tax — a local deduction non-Alabamians rarely expect.
Your paycheck vs the $66,659 Alabama median
| Median household income (2024) | $66,659 |
| Take-home (single filer) | ≈$52,582 |
Local income taxes in Alabama
Several Alabama municipalities levy a local 'occupational tax' withheld from wages of anyone working in the city (resident or not): Birmingham 1.0%, Bessemer 1.0%, Gadsden 2.0%, plus others (e.g., Macon County). It applies to earned wages only — not dividends, rent or capital gains — and the employer withholds and remits it.
Is overtime and tips tax-free in Alabama? Federally yes; Alabama's state treatment is mixed
For tax years 2025 to 2028 there is a federal deduction for qualified overtime premium pay and tips (OBBBA caps & rules). FICA comes out either way.
Alabama state income tax: Alabama does not conform to the full federal overtime deduction, but HB 527 (signed April 16, 2026) allows a smaller capped state deduction of up to $1,000 of qualified overtime compensation for tax years 2026–2028. Tips got no state relief — the federal tips deduction reduces your federal tax only. (Alabama's own earlier full overtime exemption ended June 30, 2025.) (source: governor.alabama.gov)
- Overtime: 2025 — not deductible on your Alabama return (still state-taxed); 2026–2028 — a smaller capped Alabama break.
- Tips: 2025 — not deductible on your Alabama return (still state-taxed); 2026–2028 — not deductible on your Alabama return (still state-taxed).
Related: overtime by state · overtime calculator · tips by state · tips calculator.
Beyond the paycheck: Alabama's 4% sales tax and property tax
| Sales tax | 4% (≈9.46% with local) |
| Property tax | ≈0.37% — 0.37% effective rate on owner-occupied housing value — the lowest among these six states and among the lowest in the entire nation. |
Alabama stays on the federal $7.25 minimum wage in 2026
$7.25/hour (≈$15,080/year full-time). Alabama has NO state minimum wage law; FLSA-covered workers default to the federal $7.25/hr.
Alabama paycheck FAQ
Does Alabama have a state income tax in 2026?
Yes — three graduated brackets from 2% to 5% in 2026, on top of federal tax and FICA.
Do cities or counties in Alabama take a local income tax out of paychecks?
Several Alabama municipalities levy a local 'occupational tax' withheld from wages of anyone working in the city (resident or not): Birmingham 1.0%, Bessemer 1.0%, Gadsden 2.0%, plus others (e.g., Macon County). It applies to earned wages only — not dividends, rent or capital gains — and the employer withholds and remits it.
Compare a paycheck next door: Georgia, Tennessee & Mississippi
| State | State income tax (2026) | Take-home on $75,000 (single) |
|---|---|---|
| Alabama | three brackets, 2%–5% | $58,033 |
| Georgia | flat 4.99% | $58,599 |
| Tennessee | no state income tax | $61,593 |
| Mississippi | two brackets, 0%–4% | $59,325 |
| Florida | no state income tax | $61,593 |
Those are the states next door. To see where Alabama lands against all of them at once, our take-home pay by state study runs an identical salary at two levels, $75,000 and $100,000, through the 2026 rules of every state and DC, except Arizona, California, District of Columbia, Idaho, Maryland and Vermont, still on their 2025 tables, ranked from the most take-home pay to the least.
All state paycheck calculators →
Data compiled and maintained by Edmond Daher · Updated 2026-07-31